Airports, Air Navigation Service Providers, Ground Handlers and Refuellers Insurance

As refuellers and ground handlers face a number of significant risk exposures, Marsh designs risk management and insurance solutions to meet specific requirements of our clients.

Many organisations operating airside at airport locations may have a limited aviation related exposure, with vehicles operating airside to fulfil contract works, but will nevertheless require an aviation liability policy with a minimum limit to satisfy the requirements of the airport. Our airside liability scheme is a market leading solution for clients who need an aviation liability policy as they operate in areas where conventional motor insurance policies do not respond.

Ground handling organisations face an ever challenging environment from both a financial and operational perspective with airlines seeking to leverage cost bases and reduce turnaround times around the world. In many cases this can mean trading contractual terms and conditions to secure economic advantage over the competition. We believe that understanding both the commercial considerations and the contractual position is critical to achieving the best possible insurance solution for clients in this sector. Insurance is generally the most appropriate solution, but working in combination with our risk consulting team we can provide the appropriate advice to clients in this arena.

Refuelling is one of the most highly regulated activities airside. We have experience in handling major oil companies’ global insurance programmes, and where appropriate dealing with in-house captive insurance companies. We have pioneered schemes for joint venture operations which is an increasingly used business model for major oil companies as they develop their aviation business.

Key Airport and Associated Risk Coverages to Consider

To meet the liability insurance requirements of airport owners and operators who provide premises, services and facilities necessary for handling aircraft, passengers on the ground, catering and car parking etc., the following cover is available from insurance markets:

  • Premises liability — covering legal liability for third party bodily injury or property damage arising out of activities at an airport location. This would include third party liability for the airside operation of motor vehicles.
  • Products liability offering protection against third party legal liability arising from damage or injury caused as a result of a failure of a ‘product’. The definition of an aviation product is broad enough to include physical products, as well as services such as instruction manuals and advice.
  • Hangarkeepers liability — covering loss of or damage to third party aircraft or equipment whilst in the care, custody or control of the insured.

Key Coverages for an Air Navigation Service Provider to Consider

Aviation insurance coverage in this class is perceived primarily as covering a catastrophe loss. However, it is important to ensure coverage is also afforded for airside related activities, such as the operation of vehicles, and maintenance of air navigation equipment.

Key Refueling Coverages to Consider

Aviation refuelling liability cover is available for the fuel manufacturer, the fuel supplier, the refueling operator and any other participants in the aviation refueling activity.

Coverage is for legal liability arising out of the sale, handling or distribution of aviation petroleum products, including refueling, and/or defueling and lubrication of aircraft.

Key Ground Handling Coverages to Consider

Ground handling is an extremely labour intensive sector of the market and contractual undertakings are a key factor in understanding risk. As with the other aviation risks, ground handling policies cover legal liability arising out of third party bodily injury or property damage.