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Airport requires me to name them "as the Certificate Holder and as an additional insured", Why?


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Fellow Aviators!

I'm in the process of new ownership, reading through the bylaws of the local airport. Why am I required to name my airport as the certificate holder and additional insured on my policy? Shouldn't they carry their own insurance? Shouldn't my tie downs or hangar fees go toward their insurance policy??? @Parker_Woodruff Maybe you could help? I have an inherent distrust of government and their ability to file a claim without me determining my own fault in the matter makes me cringe. Also what is the certificate holder? What rights am I giving away there? 

Why don't I have to give my local municipality the same rights for my auto insurance? The city has their own insurance, so does the airport especially when I pay them for their services... odd.

~Blake

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13 minutes ago, Parttime_Pilot_Blake said:

Fellow Aviators!

I'm in the process of new ownership, reading through the bylaws of the local airport. Why am I required to name my airport as the certificate holder and additional insured on my policy? Shouldn't they carry their own insurance? Shouldn't my tie downs or hangar fees go toward their insurance policy??? @Parker_Woodruff Maybe you could help? I have an inherent distrust of government and their ability to file a claim without me determining my own fault in the matter makes me cringe. Also what is the certificate holder? What rights am I giving away there? 

Why don't I have to give my local municipality the same rights for my auto insurance? The city has their own insurance, so does the airport especially when I pay them for their services... odd.

~Blake

I have a hangar at San Jose International Airport (KSJC).  I have been naming the City of San Jose, California as an additional insured on my aircraft policy for the past 25 years as a requirement to lease from them.  If your plane damages their hangar, they want to know that they will be compensated.  There is no cost to adding them.  If it goes against what you feel is right, then don't lease from them.  I'm sure there are plenty of others who would.

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43 minutes ago, Parttime_Pilot_Blake said:

Fellow Aviators!

I'm in the process of new ownership, reading through the bylaws of the local airport. Why am I required to name my airport as the certificate holder and additional insured on my policy? Shouldn't they carry their own insurance? Shouldn't my tie downs or hangar fees go toward their insurance policy??? @Parker_Woodruff Maybe you could help? I have an inherent distrust of government and their ability to file a claim without me determining my own fault in the matter makes me cringe. Also what is the certificate holder? What rights am I giving away there? 

Why don't I have to give my local municipality the same rights for my auto insurance? The city has their own insurance, so does the airport especially when I pay them for their services... odd.

~Blake

Blake, it's annoying, but with municipalities there is no way around it.  That said, municipalities are rarely, if ever, named in suits where an aircraft operator is negligent.

Regarding @donkaye's comment above, they do want to know you have insurance and I guess this is one way to prove it.  However, almost every standard policy form does not cover property damage to property you rent (the hangar).  However, most carriers write back this coverage under terms such as Fire Legal Liability, Damage to Premises Rented, or Non-owned Hangar coverage.

 

The worst offender right now is Signature Flight Support.  They want to be afforded a waiver of subrogation if you lease hangar space from them and in one case I heard they require the aircraft owner to fix their hangar if they break it while moving the aircraft. 

Underwriters are finally pushing back on this and charging for it.

You buy your insurance, Signature should buy theirs.

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Moved to a county owned airport last year and was surprised they did not required proof of insurance.  That changed a couple weeks ago, make an appointment to come an sign the new tenant lease, we'll have it notarized.  Proof of insurance is now required and the county airport named as a co-insured. Global's agent didn't blink an eye, sending the required by email the same day.

More rules, more regulations, more requirements, more insurance, more costs. Oh no, you got me started. 

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Just an email to your insurance guy and he'll send you back the document. Never have been asked to pay for it. I even have multiple places per aircraft and they don't mind issuing more than 1 per plane.

Edited by RobertGary1
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Had some drainage work done on a condo for which I am association treasurer. Required a permit and various on-site inspections. City required to be listed as additional insured on our association policy. Risk is minimal and there was no cost to add them. I think the city was just mindful of its fiduciary responsibility to the taxpayers.

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16 hours ago, Parker_Woodruff said:

You buy your insurance, Signature should buy theirs.

I agree, but try telling that to Signature; or for that matter, Ambassador at my home drome.

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21 hours ago, Parker_Woodruff said:

The worst offender right now is Signature Flight Support.  They want to be afforded a waiver of subrogation if you lease hangar space from them and in one case I heard they require the aircraft owner to fix their hangar if they break it while moving the aircraft. 

Underwriters are finally pushing back on this and charging for it.

You buy your insurance, Signature should buy theirs.

There is the problem. If they are a named insured on your policy, and if their employee screws up in moving your aircraft, or you request that your aircraft be hangared because an approaching hail storm and their employee fails to do it,  or their improperly maintained hangar damages your aircraft, you effectively have no recourse against them, because they would tender the claim to your own insurance carrier. You have no control over the hiring and training of their personnel and no way to protect yourself from their negligence, but you become the party responsible for it. If their conduct causes a claim, whose insurance do you think the carrier is going to want to terminate? See a lawyeror call AOPA, there needs to be an exclusion from coverage for them under your policy if damage is caused in whole or in part by their negligence, breach of contract, or other unlawful conduct. Local lawyer will know best what needs to go into the agreement, because it is a matter of local (state) law, may be different in every state.

 

PS. They have their own insurance or they certainly better have it. They just want you to hold the bag.

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On 3/25/2021 at 11:25 AM, Parker_Woodruff said:

Now that Bill Gates is buying Signature, I'm sure they'll be more reasonable. :D

Actually, you have that a little backwards.  Gate's PEG has been a material owner of Signature for some time.  According to a public comment by Signature, with the go private it's expected that the PEG (Cascade) will be out. 

 

William  

 

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On 3/25/2021 at 11:39 AM, jlunseth said:

 

There is the problem. If they are a named insured on your policy, and if their employee screws up in moving your aircraft, or you request that your aircraft be hangared because an approaching hail storm and their employee fails to do it,  or their improperly maintained hangar damages your aircraft, you effectively have no recourse against them, because they would tender the claim to your own insurance carrier. You have no control over the hiring and training of their personnel and no way to protect yourself from their negligence, but you become the party responsible for it. If their conduct causes a claim, whose insurance do you think the carrier is going to want to terminate? See a lawyeror call AOPA, there needs to be an exclusion from coverage for them under your policy if damage is caused in whole or in part by their negligence, breach of contract, or other unlawful conduct. Local lawyer will know best what needs to go into the agreement, because it is a matter of local (state) law, may be different in every state.

 

PS. They have their own insurance or they certainly better have it. They just want you to hold the bag.

All this is very idealistic but at the end of the day do you want the hanger or no?

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