What is Fixed Based Operator (FBO) Insurance?

Fixed Based Operator (FBO) Insurance is designed to protect businesses that provide essential services to the aviation industry. FBOs typically offer aircraft maintenance, fueling, hangaring, and other ground services for private and commercial aircraft. Given the specialized nature of their operations, FBOs face unique risks that require comprehensive and customized insurance coverage to ensure their business is protected.

Why do you need Fixed Based Operator (FBO) Insurance?

As an FBO, you are responsible for not only the safety of your staff but also the safety of your clients’ aircraft and the services you provide. FBO insurance is essential to safeguard your business from the financial consequences of accidents, damage to aircraft, environmental hazards, and liability issues. Here’s why you need it:

  1. Specialized Liability Protection: Accidents involving aircraft, ground equipment, or fueling operations can result in expensive liability claims. FBO insurance provides coverage for damages related to these incidents, protecting your business from costly legal and repair expenses.
  2. Environmental Hazards: Operations involving fuel storage and transfer carry a risk of environmental damage. Fuel Farm and Tank Environmental Liability insurance helps cover the costs of any cleanup or legal responsibility in the event of a fuel spill or environmental contamination.
  3. Peace of Mind: Whether you’re managing hangar operations or overseeing an airport property, FBO insurance offers peace of mind by covering a wide range of risks specific to your business.

What does Fixed Based Operator (FBO) Insurance cover?

FBO insurance typically includes:

  • Hangarkeepers Liability Insurance: This covers damage to aircraft while in your care, custody, or control, such as those parked in your hangar or undergoing maintenance.
  • Fuel Farm and Tank Environmental Liability: Protects your business from claims arising from environmental damage due to fuel storage or spills.
  • Airport Premises Liability: Covers liability for bodily injury or property damage occurring on your premises, including areas like terminals, hangars, and runways.
  • Aviation Property Insurance: Provides coverage for buildings, equipment, and tools used in your FBO operations, protecting against risks like fire, theft, or vandalism.

Here’s what you need to know before you purchase Fixed Base Operators Insurance.

Q: What does Hangarkeepers Liability Insurance cover?
A: Hangarkeepers Liability Insurance protects your business from claims arising from damage to aircraft in your care, such as when they are being stored, serviced, or repaired. This coverage is critical for FBOs that offer hangar or maintenance services.

Q: Do I need environmental liability insurance for my FBO?
A: Yes. FBOs that manage fuel farms or engage in fueling operations should have environmental liability coverage. This ensures that your business is protected from the potentially high costs of environmental cleanup or legal claims related to fuel spills.

Q: Is there coverage for damage caused by aircraft on the ground?
A: Yes, airport premises liability and aviation property insurance can provide coverage for damage to your property, ground equipment, or third-party property caused by aircraft while on the ground.

Understanding Additional FBO Coverage Options

  1. Hired and Non-Owned Auto Insurance:
    Provides liability coverage for any vehicles used in your operations that are rented or borrowed, including vehicles used for transporting clients or fueling services.
  2. Business Interruption Insurance:
    This coverage compensates your business for lost income if your operations are interrupted by a covered event, such as fire or natural disasters that shut down your FBO services.
  3. Workers’ Compensation Insurance:
    FBOs rely on ground crews, maintenance staff, and other employees to operate safely. Workers’ compensation insurance ensures that your employees are protected in the event of a work-related injury.

Is FBO Insurance Cost-Effective?

The cost of FBO insurance depends on factors such as the size of your operations, the services you provide, and the value of the aircraft in your care. At ArcLight Insurance, we help you find the right balance between cost and coverage, ensuring that you’re fully protected without overpaying for your policy.

Why should you use ArcLight Insurance to secure Fixed Based Operator (FBO) Insurance?

At ArcLight Insurance, we understand the specialized needs of Fixed Based Operators. We partner with the leading aviation insurers in the industry to offer tailored solutions that provide robust protection for your FBO business. Whether you need Hangarkeepers Liability, Environmental Liability, or Airport Premises Liability, we’ll work with you to design a policy that meets your specific operational requirements. With our extensive experience and industry connections, you can trust that you’re getting the most competitive rates without compromising coverage.

Take control of your aviation business’s risks. Contact ArcLight Insurance today to learn more about how our Fixed Based Operator Insurance can safeguard your operations. Speak with one of our aviation insurance experts and get a customized quote.