Hangar & FBO Insurance

Integrated aviation coverage programs for fixed base operators, hangar owners, and airport service providers.

Protecting Complex Ground-Side Operations

FBOs and hangar operators face unique property and liability exposures that require integrated aviation coverage programs designed by specialists who understand your operations.

Fixed base operators sit at the intersection of aviation risk and commercial business risk. On any given day, your team may be fueling a turbine aircraft, towing a customer's jet into a hangar, servicing avionics, managing ramp traffic, and greeting passengers — each activity carrying its own distinct liability exposure. A single general liability policy cannot adequately address these overlapping risks.

Aviation Management Insurance Services brokers comprehensive FBO and hangar insurance programs that bring together the specialized coverages your operation requires under a coordinated program — eliminating gaps, reducing overlap, and ensuring that every facet of your business is properly protected.

Key Coverage Components

A properly structured FBO program integrates multiple coverage lines into a single coordinated insurance program.

Hangarkeepers Liability

Covers physical damage to customer-owned aircraft while in your care, custody, and control — whether stored in your hangar, on your ramp, or being moved by your personnel.

Premises / General Liability

Protects against bodily injury and property damage claims arising from your facility operations, including slip-and-fall incidents, ramp operations, and customer interactions.

Products Liability

Covers claims arising from products you provide, most notably fuel contamination incidents that can cause catastrophic engine damage or in-flight emergencies.

Completed Operations

Provides liability protection for maintenance, repair, and inspection work after the aircraft leaves your facility — critical for Part 145 repair stations and avionics shops.

Commercial Property

Covers your physical assets including hangars, terminal buildings, maintenance equipment, tools, fuel trucks, ground support equipment, and office contents.

Pollution / Environmental Liability

Covers cleanup costs and third-party claims arising from fuel spills, de-icing fluid runoff, and other environmental contamination events on or around your facility.

Commercial Auto

Covers fuel trucks, tugs, baggage carts, crew cars, and other vehicles operated on airport property and public roads as part of your FBO operations.

Workers' Compensation

Mandatory coverage for employee injuries occurring during the course of employment, including ramp operations, maintenance work, and fueling activities.

Business Interruption

Replaces lost income and covers continuing expenses if a covered event — such as a hangar fire or storm damage — forces your operation to temporarily shut down.

Who Needs This Coverage

Any business that stores, services, or manages aircraft for others requires a specialized FBO or hangar insurance program.

Fixed Base Operators

Full-service FBOs providing fueling, hangar storage, maintenance, passenger services, and ramp operations.

Hangar Owners

Private or commercial hangar owners leasing space to aircraft owners or providing storage services.

Airport Operators

Municipal, county, or private airport authorities managing runway, taxiway, and terminal operations.

Part 145 Repair Stations

FAA-certificated repair stations performing maintenance, repair, and overhaul on customer aircraft.

Avionics Shops

Businesses installing, repairing, or modifying avionics systems, instruments, and electronic equipment.

Aircraft Management Companies

Companies managing aircraft on behalf of owners, coordinating maintenance, crew, and operational logistics.

Common Risks & Exposures

Understanding the specific risks facing FBO and hangar operations is the first step toward building an adequate insurance program.

Hangar Rash (Most Common Claim) Scratches, dents, and paint damage caused during aircraft towing, repositioning, or storage. While individual claims may be modest, their frequency makes hangar rash the single most common source of hangarkeepers liability losses.
Fire Hangar fires can result in total loss of the structure and every aircraft stored inside. The concentrated value of multiple aircraft in a single hangar creates catastrophic loss potential.
Windstorm & Weather Events High winds, hail, and severe weather can damage hangars, ramp-tied aircraft, and ground support equipment. Properly structured property coverage addresses both the building and its contents.
Fuel Spills & Environmental Contamination Fuel storage, delivery, and dispensing operations create environmental liability exposure. Cleanup costs from even a minor spill can be substantial, and regulatory fines compound the financial impact.
Slip-and-Fall Incidents Fuel, oil, hydraulic fluid, and de-icing chemicals on ramp surfaces and hangar floors create premises liability exposure for injuries to employees, customers, and visitors.
Vehicle-Aircraft Collisions Collisions between ground vehicles (fuel trucks, tugs, baggage carts) and parked or taxiing aircraft represent a significant and costly exposure unique to airport environments.
Maintenance Errors & Completed Operations Incorrect maintenance, improper repairs, or faulty installations can lead to in-flight incidents with severe liability consequences long after the aircraft has departed your facility.
Theft & Vandalism Aircraft, avionics, tools, and equipment stored at your facility may be targets for theft or vandalism, requiring both property coverage and adequate security protocols.

Why a Specialist Broker Matters

FBO and hangar insurance programs involve multiple overlapping coverage lines, aviation-specific policy language, and underwriting considerations that general commercial agents rarely encounter. A specialist aviation broker brings critical advantages:

  • Hangarkeepers coverage nuances: Understanding the difference between per-aircraft limits and per-occurrence limits — and when each structure is appropriate for your operation.
  • Understanding FBO operations: Your business spans multiple risk categories simultaneously. We structure programs that address fuel operations, aircraft storage, maintenance, and passenger services without coverage gaps between policies.
  • Environmental and pollution expertise: Fuel storage and de-icing operations require specialized pollution liability coverage that standard commercial policies typically exclude.
  • Contractual risk management: Airport authority lease agreements, fuel supplier contracts, and customer hangar agreements contain insurance requirements we can help you navigate and satisfy.
  • Loss control guidance: We provide practical recommendations for reducing hangar rash incidents, improving ramp safety procedures, and meeting insurer expectations for risk management.
  • Access to specialty aviation markets: FBO coverage is placed through specialty aviation underwriters, not standard commercial markets. Our established relationships give you access to competitive terms from carriers who understand your business.
Request an FBO Coverage Review

Key Terms & Concepts

Understanding these terms will help you evaluate your current coverage and communicate effectively with underwriters.

A legal concept that defines when you assume responsibility for another party's property. In the FBO context, an aircraft enters your care, custody, and control when you accept it for storage, towing, fueling, or maintenance. Standard general liability policies typically exclude damage to property in your CCC — which is precisely why a separate hangarkeepers liability policy is essential. Understanding exactly when CCC begins and ends is critical for determining which policy responds to a loss.

A subrogation waiver is an agreement where one party's insurer agrees not to pursue recovery against another party after paying a claim. Airport lease agreements and hangar rental contracts frequently require mutual waivers of subrogation. Your insurance policy must permit these waivers — otherwise, granting one in a contract could void your coverage for the related loss. We review your contracts to ensure your policy supports the subrogation waivers you have agreed to provide.

Per-aircraft limit: The maximum amount the insurer will pay for damage to any single aircraft in your care. If you store a $5 million jet but your per-aircraft limit is $2 million, you face a $3 million gap.

Per-occurrence limit: The maximum amount the insurer will pay for all aircraft damaged in a single event, such as a hangar fire. If a fire destroys four aircraft totaling $8 million but your per-occurrence limit is $5 million, you are exposed to the difference.

Properly sizing both limits requires a careful analysis of the aircraft you typically store and the maximum total value that could be at risk in a single event.

All-risk (open peril): Covers damage from any cause unless specifically excluded in the policy. This is the broader, more protective form and is generally preferred for both property and hangarkeepers coverage.

Named-peril: Covers only losses caused by perils specifically listed in the policy (for example, fire, lightning, windstorm). If a cause of loss is not named, it is not covered. Named-peril policies carry lower premiums but leave significant gaps in protection.

We recommend all-risk coverage for most FBO operations and help you understand which exclusions to watch for in your policy language.

FBOs that store and dispense aviation fuel must comply with federal EPA regulations, state environmental requirements, and local fire codes governing underground and aboveground storage tanks. Non-compliance can void pollution liability coverage and expose the operator to uninsured regulatory fines and cleanup costs. Insurers typically require documentation of tank testing, spill prevention plans, and compliance certifications as conditions of coverage. We help you understand and meet these requirements as part of the coverage placement process.

Airport lease and hangar rental agreements allocate insurance responsibilities between the airport authority (landlord) and the FBO or hangar tenant. These contracts typically specify minimum liability limits, require the tenant to carry hangarkeepers coverage, and may require the tenant to name the airport authority as an additional insured. Understanding who is responsible for insuring the building structure versus the contents, and who bears liability for common areas, is essential for avoiding coverage disputes after a loss.

The business interruption period defines how long the insurer will pay for lost income and continuing expenses after a covered property loss. Standard policies use a “period of restoration” — the time reasonably required to repair or replace the damaged property. For FBOs, rebuilding a hangar or replacing specialized equipment can take months. If your business interruption period is too short, you may exhaust coverage before your operation is fully restored. We help you evaluate the appropriate period based on realistic reconstruction timelines for your specific facility and equipment.

Let Us Handle the Complexity

Your job is to run a safe, efficient operation. Our job is to make sure it's properly protected. Let AMIS build an FBO insurance program tailored to your specific risks.