Page 15 - January 2015 Volume 9, Number1

maintenance or use of automobiles, but only while on airport premises.”
Most aircraft policies state that this coverage is “excess coverage.” This means if you have coverage on your auto policy, then the auto policy would pay out first and then the aircraft policy would pay out once the auto policy limits were exhausted.
The probability that the auto policy would cover this in the first place is minimal, and if it did, there likely wouldn’t be enough coverage to pay for the entire claim. The aircraft policy would then kick in as “excess.” The limit within the aircraft policy will vary, but it should be the amount shown on your declarations page. Meaning, if you have a $25,000,000 liability limit, then you should have $25,000,000 worth of “On Airport Premises Liability.” Again, you need to read your policy to make sure you have this coverage and confirm that it isn’t “sub-limited.”
Keep in mind that this is only applicable if you are involved with operating the car. If the person or entity driving the car does not have coverage, your policy will pay to fix your airplane. However, this will affect your loss record, which could adversely affect your rates. The FBO’s insurance should only come into play if it was their employee or contractor that was negligent; however they could be involved in the claims process due to “negligence.”
While on the ramp this week at a large general aviation airport, I noticed non-FBO golf carts and tugs driving around. Perhaps you have a piece of mobile equipment kept in your hangar to drive around the airport? If you caused bodily injury or property damage in that mobile equipment, you may want to make sure you have coverage for that! This would be under the “Liability Coverage” section of your policy, titled “Use of Mobile Equipment.” The paraphrased version is this: Your policy will cover you up to the policy limits if you are operating equipment that you own or lease (must have a written agreement if leased) while it is on airport premises. There are three caveats for the “mobile equipment:”
1. Not subject to motor vehicle registration, and
2. Designed for use principally off public roads, and
3. Used exclusively on airport premises owned by or rented to you, including roadways immediately adjoining.
With that in mind, one would ask their broker, “What if I borrow the golf cart at a transient FBO to go to my airplane, am I covered? Number three above says “exclusively on airport premises owned by or rented to you.” How many of us have borrowed the FBO’s
JANUARY 2015
KING AIR MAGAZINE • 13
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