What is Fixed Base Operators Insurance?
Fixed Base Operators (FBOs) provide a range of ground services to general aviation aircraft, such as fueling, hangaring, maintenance, and flight instruction. Because these services involve significant operational and liability exposures, FBO insurance is designed to protect against a variety of risks tied to aviation support businesses.
This type of insurance typically includes a blend of commercial general liability, hangar keepers liability, property coverage, and coverage for owned or leased equipment. FBOs may also face exposures related to commercial auto use on the airfield, as well as potential injury risks to transient pilots or passengers.
Who Needs It
FBO insurance is essential for businesses that operate as fixed base operators at airports or airfields. This includes independent operators, airport service providers, aviation maintenance shops, and charter service providers. If your organization offers services like aircraft fueling, tie-downs, maintenance, or avionics repair, this coverage helps safeguard your operations.
What It Typically Covers
A comprehensive FBO insurance policy may include:
- General Liability – Covers bodily injury or property damage to third parties on your premises.
- Hangar Keepers Liability – Protects against claims for damage to non-owned aircraft in your care, custody, or control.
- Property Insurance – Covers damage to your buildings, tools, and aviation equipment.
- Commercial Auto – For vehicles used in airfield operations, such as fuel trucks or crew vans.
- Products and Completed Operations – Addresses liability from parts sold or services performed, such as aircraft maintenance or repairs.
For example, if an aircraft is damaged while in your hangar due to a fire or equipment failure, hangar keepers liability coverage may help cover the repair costs.
Common Exclusions or Limitations
Policies often exclude intentional acts, wear and tear, or damage from unapproved aircraft movements. Some coverage may not extend to flight operations unless explicitly endorsed. Environmental exposures such as fuel spills may require separate endorsements or a pollution liability policy.
It's important to review exclusions related to subcontracted work, aircraft in motion, or unauthorized use of vehicles or equipment.
Factors That Influence Cost
Several underwriting factors determine the cost of FBO insurance:
- Size and scope of operations
- Annual revenue and number of aircraft serviced
- Type of services offered (e.g., maintenance vs. fueling)
- Location and facility risk profile
- Claims history and risk management practices
For instance, a high-traffic FBO at a regional airport with fueling operations and hangar storage may carry higher premiums due to increased liability exposures.
Proof of Insurance & Compliance
Most airports require FBOs to provide a certificate of insurance to operate on the premises. This proof of insurance demonstrates compliance with lease agreements, vendor requirements, and local regulations. Keeping coverage active and up to date is essential for maintaining operational access and contracts.
How to Get a Quote
To get a tailored quote for fixed base operator insurance, you’ll need to provide details about your services, equipment, facility size, and safety protocols. An experienced aviation insurance provider can help assess your risk exposures and customize a policy that fits your operations.
Get a quote today to protect your FBO operation.
Frequently Asked Questions
Is hangar keepers liability included in FBO insurance?
Yes, most FBO insurance policies include hangar keepers liability to protect against damages to aircraft in your care.
Do I need separate coverage for fuel trucks?
If your FBO operates fuel trucks or other vehicles on the airfield, commercial auto coverage is typically required.
What if I subcontract maintenance services?
Subcontracted work may not be covered unless specifically included in your policy. Always disclose third-party arrangements to your insurer.
Can I get coverage for environmental risks like fuel spills?
Yes, but pollution liability is often a separate coverage or endorsement that needs to be added to your policy.
How often should I review my policy?
It’s recommended to review your FBO insurance annually or whenever you add new services, equipment, or locations.
Still have questions? Talk to a local insurance expert.