Insurance - Are You Covered?

Written By: Phil Bettinson
PSA Insurance Brokers Ltd.
Originally Published in the May 1990
issue of The Outfitter Magazine.


Aviation Premises and Operations - Liability

This coverage is designed to protect a landowner or tenant from liability or law suits for injury as a result of using your facilities.

Normally, business liability provides protection for normal operations, however when aircraft are involved, your business insurance does not provide any coverage or even defense cost, as it is specifically excluded. Therefore, when your dock areas are used for loading or unloading passengers and baggage, the coverage required to ensure protection is an Aviation Premises and Operations Liability Policy.

This is legal liability type coverage, which means it will provide legal defense and pay on your behalf if you are found negligent. This is an important coverage required even if you do not own, lease or operate aircraft.

There are several cases where dock owners have been drawn into a legal action, where the persons injured were visitors, not guests, and injured by an aircraft not usually based at that location.

This coverage is provided on a blanket basis and will protect on a main base and all remote or outpost locations. It should also be purchased in the name of your operation and include all legal and trading company names to ensure that all corporate identities are protected.

With respect to limits, $1,000,000 each occurrence is generally the rule, however higher limits are available and should be considered depending on the amount of assets in the operation.

If dock areas are leased to others for aircraft operations, to protect yourself you should request verification (proof that this coverage has been purchased) and also you should request to be added as an “Additional Insured” on their policy. In this way you can gain protection under the aircraft operator’s insurance coverage.

Non-Owned Aircraft Liability

This coverage is a protection for lodge operations which use aircraft for transportation of their guests, but do not operate or control the aircraft. Even though the primary liability will fall on the aircraft operator, you ARE EXPOSED to liability actions. If the aircraft operator violated his policy and was not protected, this would make you, the lodge owner, more vulnerable to this type of action.

Please note, once again as in the Premises Liability, your business liability would not protect you, as this is an aviation operation and is specifically excluded under your business coverage.

If you deal with one air service primarily, you can request to be included, or added as an “Additional Insured” with respect to liability which will protect you to a minor degree. However, you are still not in control of this ie: the air service policy could be cancelled for non-payment or violated breach of air regulations. The best situation is to know you are protected by purchasing the proper coverage.

This coverage is usually only available on an annual basis, however this year PSA has arranged for April to October policy terms at a reduced basis to better suit the seasonal nature of the tourism industry in Northern Ontario.

If you have any questions or wish to discuss your individual situation, please feel free to contact our office - either Carol Jones or Phil Bettinson - for further information or an application to request a firm quotation.


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