FBO Insurance requirement for tie-downs

Additional Insured status on YOUR policy and Hangar Keepers Liability are
very different.

Additional Insured (AI) protects them for liability claims arising from YOUR
ownership and operation of your aircraft. If the FBO gets sued for
something YOU did, the AI will give them some protection. However, it does
not protect them if THEY did something negligent, therefore most airport
require the FBO to carry their own insurance too.

Hangar Keepers Liability (HKLL) pays for damage to an aircraft in the FBO's
custody if the FBO damages it. AI will NOT pay for damage to your
aircraft - HKLL will.

Jon Howard

"zatatime" wrote in message
...
On 14 May 2004 08:00:40 -0700, (Chris) wrote:

That is the least of your concerns. Here is what happens:

You think you have $1 million liability insurance. Now that the FBO is
a
named insured, you really only have $500,000 liability insurance,
because in
the event of an accident the FBO is entitled to coverage under your
policy.
Basically, you are paying for the FBO's liability insurance.

Now that sounds more in line with what I was thinking. It certainly
gives me second thoughts. The issue is this airport is only 5 minutes
from my house which would be nice. I don't understand why they would
not rely on their insurance company to sue me/my insurance if an issue
ever arose. My guess is they are saving lots of money on premiums by
doing this with every aircraft on the ramp.

- CK

If they do this thry may not need insurance. There is something
called Hangar Keepers Insurance which airports/FBOs have to protect
themselves. It has gotten pretty expensive (like all insurance), so
if they can ride your coat tails they may be able to drop it. Might
be interesting to ask if they have Hangar Keepers, it may add a piece
to the puzzle.

z