Page 11 - Volume 12 Number 2

it is prudent to make sure they not only do good work, but that they have the necessary insurance coverage in place. Plaintiffs go where the money is, and if it isn’t there, they will come back to you. The time to find out your shop doesn’t have insurance isn’t during the discovery process in court.
Your maintenance provider should be carrying a couple of different coverages under their General Liability policy. If their shop rates are “cheap,” this might raise a red flag that they may not be buying the appropriate coverage, or have any coverage at all. For example, there was a mid-size
business jet operator that patronized a specific FBO because they had “cheap fuel.” Later it was discovered that the FBO used homemade tow bars, which
As owners and operators of cars,
most states require we show proof
During aircraft ownership,
there are ways to manage
of insurance in order to register it.
Not so with general aviation; only your current and future risks. unfortunately broke during use. When
commercial operators (Part 121 and Part 135) are required by the Department of Transportation to carry insurance. Also, FBOs and repair stations are not required to carry insurance. In some cases, the airport authority, as their landlord, may require the businesses on their airport to carry insurance.
Like most things in aviation, it is always a good idea to have a plan, be proactive and prepared.
the tow bar broke, the jet kept rolling ... right into the tractor they were using as a tug, causing about $1,000,000 in damage. The “cheap fuel” FBO only had $250,000 in coverage. The FBO on the other side of the runway had $50,000,000. It is time well spent to read any contract the FBO wants you to sign waiving your rights to
OEMs really like the General Aviation Revitalization Act, as it limits their risk to 18 years. The aircraft owner and maintenance shops then become the source for the settlement. There are even some maintenance shops that refuse to work on aircraft older than 18 years of age because of this. Some insurance companies also shy away from insuring older aircraft and shops that agree to work on older aircraft.
compensation when it is negligent. Additionally, ask for a “To Whom It May Concern” certificate of insurance that verifies the hangar keeper’s limit, and their product and completed operations limit.
If you want to get additional reassurance, you can ask to review any endorsements that broadens/enhances what is covered under the FBO’s policy. Then, don’t be afraid to ask your insurance broker to review it and offer their input.
FEBRUARY 2018
KING AIR MAGAZINE • 9