An aviation general liability insurance policy (AGL) may be used to supplement commercial general liability (CGL) insurance coverage for airports, according to a recent report issued by insurance broker Assurex Global titled, “Aviation General Liability for a Holistic Risk Management and Insurance Program.”
A number of airport-specific liability risks may be excluded from standard CGL insurance through the use of an “airport and aircraft exclusion,” reports Assurex. As a result, risk managers for all types of airports may want to consider adding five specific types of insurance coverage identified by Assurex:
- Premises liability
- Hangarkeeper’s liability
- Products and completed operations liability
- Personal and advertising injury liability
- Contractual liability
The additional aviation general liability insurance coverage is intended to protect the airport owner in the event of injuries or damage on airport property, including slip and falls, aircraft damage, or contractual matters with airport suppliers.
Aviation general liability insurance may help airports address a number of unique liability exposures, but comprise only one element of an airport’s overall risk management program.
Types of Airports in the U.S.
The Federal Aviation Administration (FAA) identifies and defines four primary types of airport categories, as listed below.
- Commercial Service Airports. These are publicly owned airports with at least 2,500 passenger boardings each calendar year and receive scheduled passenger service. This category is sub-divided into non-primary and primary commercial service airports, depending on traffic levels.
- Cargo Service Airports. These airports are served by aircraft providing air transportation of only cargo with a total annual landed weight of more than 100 million pounds.
- Reliever Airports. These airports are designated by the FAA to relieve congestion at Commercial Service Airports and to provide improved general aviation access to the overall community. These may be publicly or privately-owned.
- General Aviation Airports. These are public-use airports that do not have scheduled service or have less than 2,500 annual passenger boardings.
Bill Hager’s Airport Liability Insurance Policy Expertise as an Insurance Regulator.
Mr. Hager has extensive and substantive experience relating directly to aviation general liability insurance policies (which are sold by property casualty insurance companies and by licensed property casualty insurance agents) including interpreting policy language and determining the insurer’s obligations under such policies.
As a regulator for eight years in five positions ((i) Assistant Attorney General assigned to the Department of Insurance, (ii) First Deputy Commissioner of Insurance, (iii) Iowa Commissioner of Insurance, (iv) Administrative Law Judge, and (v) Executive and Member of the National Association of Insurance Commissioners), Mr. Hager, along with his staff, approved (or disapproved) of the language of airport liability insurance policies used by each of the 1,000 property casualty insurance companies doing business in the state of Iowa, selling among other coverages, airport liability policies.
This regulatory action also included the approval of most all policy application forms and policy forms themselves in use today. In addition, Mr. Hager regularly served as an Administrative Law Judge in matters relating directly to airport liability insurance policies.
Click on the link to read more about Mr. Hager’s experience as an airport insurance policy expert.
Material for this article was taken from a collection of industry sources relating to the subject.
In all of the general statements here, see the state law of the controlling jurisdiction. Every case is different and circumstances vary widely depending on the governing state law, policy provisions, and related considerations.
This blog is provided for educational purposes only. It is not intended to provide legal advice or an opinion in regard to any topic discussed. The blog should not be used as a substitute for legal advice from a licensed attorney in your state.