What is Maintenance, Repair and Overhaul Facilities?
Maintenance, Repair and Overhaul (MRO) facilities are specialized operations that provide essential upkeep and restoration services for a range of vehicles and equipment, including aircraft, boats, and industrial machinery. These businesses often involve complex mechanical work, high-value tools, and large-scale operations that require specialized insurance protection due to their unique risk exposures.
Who Needs It
This type of insurance is typically sought by contractors, repair shop operators, equipment refurbishers, and businesses involved in servicing aircraft, marine vessels, or heavy machinery. Whether you're running an aircraft support shop or a boat repair facility, your operations involve property exposure, liability risks, and potential worker injuries that make tailored coverage essential for business continuity.
What it Typically Covers
Policies for MRO facilities usually include a combination of:
- Commercial property coverage – Protects buildings, tools, and equipment from fire, theft, or weather damage.
- General liability insurance – Covers third-party bodily injury or property damage claims, such as a visitor slipping in the workshop.
- Commercial auto exposure – For businesses that transport equipment or client property.
- Equipment coverage – Protects mobile or specialized repair tools and diagnostic systems.
- Workers’ compensation – Covers employee injuries sustained during maintenance or repair tasks.
Some policies may also include participant accident coverage if your facility conducts training or demonstrations involving third parties.
Common Exclusions or Limitations
While coverage is broad, insurers may exclude certain high-risk activities or limit coverage for:
- Work performed on military or experimental equipment
- Intentional damage or dishonest acts
- Operations taking place outside designated facility zones
Be sure to review limitations related to subcontractor work, transportation risks, and environmental exposures.
Factors That Influence Cost
Premiums for MRO facility insurance depend on multiple underwriting factors, including:
- Size and location of your facility
- Types of equipment serviced
- Annual revenue and payroll
- Claims history and loss prevention practices
For instance, a boat repair workshop near the coast may face higher property risks than an inland aircraft repair shop.
Proof of Insurance & Compliance
Clients, landlords, or state regulations may require you to show proof of insurance before entering into contracts or beginning operations. A certificate of insurance (COI) provides this documentation and confirms your facility meets minimum coverage requirements.
How to Get a Quote
To get started, provide basic information about your facility, services offered, number of employees, and safety protocols. Our licensed specialists will help tailor a policy that fits your operation’s risk profile and insurance needs.
Request a custom insurance quote today.
Looking for coverage tailored to specific industries? Learn more about coverage options for aircraft maintenance and repair services and boat repair workshops.
Frequently Asked Questions
What types of businesses are considered MRO facilities?
Any operation focused on maintaining, repairing, or overhauling vehicles, machinery, or equipment—such as aircraft hangars, marine service yards, or industrial repair shops—falls under this category.
Is general liability enough for an MRO facility?
No. While general liability is important, most MRO businesses also need property, equipment, and workers’ compensation coverage to address all risk exposures.
Do I need coverage if I subcontract some repair services?
Yes. Even if work is subcontracted, your facility could still be liable for damages or injuries related to that work, depending on the contract terms.
How can I lower my insurance costs?
Implementing strong safety protocols, maintaining a clean claims history, and regularly training employees can help reduce your premiums.
What happens if a customer’s equipment is damaged while in my care?
Coverage for customer property in your care, custody, or control can be added to your policy to protect against these types of exposures.
Still have questions? Talk to a local insurance expert.