Hot Air Balloon Insurance Michigan Policy Information
Hot Air Balloon Insurance Michigan. Hot air balloons offer many different things to many different people - a romantic get-away, a wonderful way to take pictures from up above, or even a sport.
Balloon operators rent or charter balloons for rides, lessons, tours, and commercial advertising displays. Some balloons remain tethered to the ground, allowing passengers to ascend into the air without traveling at a distance. Balloon operators may participate in contests, competitions, or exhibitions, or be part of a meteorological or scientific research operation.
All pilots must have Federal Aviation Administration (FAA) licensing to operate the balloon. Strict compliance with FAA standards for the maintenance and use of the balloon is important.
Checking weather conditions before the flight is critical. Balloons may veer off course due to high winds and collide mid-air with other balloons or hit power lines. Gusts of wind can cause difficulty during landing, including overturn of the basket containing the pilot and passengers.
As a general rule, drones, or unmanned aerial vehicles (UAVs), and hot air balloons do not do well when both are in the air because the potential of physical contact is too great.
Made up of an envelope (the "balloon") filled with propane-heated air and a basket that carries the passengers and the fuel, hot air balloons, in fact, represent the safest and most unique mode of air travel.
Hot air balloon operators make it possible for almost anyone to experience the world as never before, and because many people dream of taking a hot air balloon flight, there is no doubt that hot air balloon operators have a highly rewarding job.
It is also, on the other hand, impossible to escape the fact that hot air balloon operators take on many risks. Whether you already own a company that facilitates hot air balloon flights, or you are currently investigating this possibility, managing those risks is an essential part of being a responsible business owner.
What role can insurance play in protecting your company from financial losses, and what types of hot air balloon insurance should balloon operators carry? Discover more in this brief guide.
Hot air balloon insurance Michigan protects balloon operators from lawsuits with rates as low as $87/mo. Get a fast quote and your certificate of insurance now.
Why Do Michigan Hot Air Balloons Need Insurance?
Hot air balloon operators may be in one of the most exciting branches of commerce, but they, like all other businesses, face numerous hazards. Some of the perils you may be confronted with are of a universal nature, while others are unique to hot air ballooning.
Your MI business premises may be impacted by acts of nature (earthquakes, floods, wildfires, or lightning strikes, for instance), and you could fall victim to criminal acts like vandalism and theft, just like any other commercial venture.
These perils could lead to massive repair or replacement costs while also causing costly business interruptions that could, without the right insurance, prove extremely burdensome.
In addition, despite the fact that hot air balloon flights are generally safe, accidents can happen, and unforeseen circumstances may arise. Your employees and passengers may collide with a power line during a hot air balloon flight, for example, or the envelope may collapse mid-flight. During landing, damage may be caused to third party property. The possible injuries and property damage that may arise from hot air balloon flights can lead to exorbitant liability-related costs.
By arming yourself with the best possible hot air balloon insurance Michigan coverage, you don't simply meet your legal obligations and protect third parties - you will also know that you have safeguarded the future of your business, and will as such be able to operate without any worries.
What Type Of Insurance Do MI Hot Air Balloons Need?
The profile of your unique business influences the insurance coverage you will require - and that includes the jurisdiction where you are based, the number of employees you have, and the size of your operation.
Consulting a skilled commercial insurance broker, who will be able to offer you advice tailored to your circumstances, is therefore essential. Among the types of hot air balloon insurance Michigan that balloon operators should always carry to protect their business against the costs of major perils are, however:
- Commercial Property: This type of insurance shields you from the costs that would otherwise be associated with property loss and damage caused by perils such as theft, vandalism, fire, and natural disasters. Business interruption insurance is a related form of coverage that covers a portion of your lost revenue. Your hot air balloons will not, however, fall under these policies.
- Commercial General Liability: This essential form of hot air balloon insurance Michigan coverage protects hot air balloon operators in the event of bodily injury or property damage claims related to incidents that occurred on their business premises or as a result of the company's operations. Your legal costs, such as attorney fees and settlement expenses, are covered under this kind of insurance.
- Hot Air Balloon: Niche insurance companies are able to provide specialized insurance coverage for your fleet of hot air balloons, covering repair and replacement costs in case of mishaps.
- Workers' Compensation: This kind of insurance simultaneously protects your company and employees. Were an employee to sustain an occupational injury or illness, it takes care of their medical bills alongside any income they lose to related work absences. In turn, your company is shielded from litigation.
Because MI balloon operation might also have additional insurance needs, it is imperative to partner with a seasoned commercial insurance specialist, who is able to help you get set up with the hot air balloon insurance Michigan coverage your unique company deserves.
MI Hot Air Balloon Operator's Risks & Exposures
Premises liability exposure is limited to the customer waiting area and any pre-flight training for passengers. To prevent trips, slips, and falls, all areas accessible to customers should be well maintained with floor covering in good condition. Customers should not be permitted near any hazardous activity such as fueling. Observers should be kept away from the balloon while it is being loaded and released.
Products exposure is limited unless balloon and equipment repair is handled for customers.
Workers compensation exposures are substantial. Slip and falls, burns from balloon heating equipment, lifting, back injury, hernia, sprain, and strain can occur. Operators may have to work in awkward positions while boarding and disembarking from balloons.
Injuries may result from landing in trees, falls from heights or electrocution from contact with power lines. Driving chase vehicles presents exposure to over-the-road accidents.
Aircraft hull exposure covers the balloon, gondola and heating equipment, which can be damaged due to the tight timeframes required in the event of an emergency. Pilot error, including failure to consider weather conditions, can result in a costly accident.
Pilots must adhere to all FAA regulations, including the need for ongoing physical examinations. All balloons must be maintained according to manufacturers' specifications, and records of such maintenance kept in a central location.
Aircraft liability exposure covers injuries to passengers and damage to property of others which can result from landing at unauthorized locations. In an emergency situation, timely response is critical. Pilots must meet all FAA regulations, including current licensing, for the balloon.
They must participate in regular training activities to maintain skills. Balloons must be maintained and records kept of the maintenance. Crash landings can result in severe injury or death to passengers.
Property exposure includes an office facility and a storage facility for the balloon(s) and its equipment. Fire potential is due to the heating equipment used for hot air balloons and the tanks of gas used for lighter-than-air balloons.
Gas tanks should be stored upright in locked, fireproof cabinets. Smoking should be prohibited. Balloons may be targets for theft or vandalism. The premises should be secure from unauthorized access by others.
Crime exposure is from employee dishonesty and money and securities. The exposure increases without background checks on all employees. Payment for services may be made with cash. Monetary transactions must be monitored and audited on a regular basis to prevent employee theft.
All billing, ordering, and disbursements should be separated. Regular deposits should be made.
Inland marine exposure includes accounts receivable for billings, communications equipment, computers, and valuable papers and records for customers', regulatory, and suppliers' information. Communications equipment includes the radio and transmitting equipment used during the flight to track and monitor the balloon's progress. There may be bailees exposure for items kept in lockers by customers taking balloon flights.
Business auto exposures come from the service and "chase" vehicles used to monitor, track, and retrieve the balloon and its passengers and crew at the end of the flight. Chase crews should include a driver and a spotter as they may be traveling in remote or unfamiliar areas.
Transport of passengers to and from lift and landing points increases the loss potential. All drivers must have appropriate licenses for the types of vehicles being driven and acceptable MVRs. They must be trained in proper tie-down techniques for the balloon and equipment.
Vehicles must be well maintained with records kept in a central location, and have appropriate safety equipment for passengers.
Hot Air Balloon Insurance Michigan - The Bottom Line
To protect your operations, employees and the people you serve, having the right hot air balloon insurance Michigan coverage is vital. To learn what types of coverage options are available to you and the costs - speak to a reputable commercial insurance broker.
Michigan Economic Data And Business Insurance Requirements
Business owners who are interested in establishing operations Michigan must have a thorough understanding of the state's economy. They should also familiarize themselves with any regulations and limits that state may have in place for commercial insurance.
Any entrepreneur who is thinking about starting a business in the Great Lake State first needs to determine if it's a feasible location for business operations. As such, it's important to have a keen understanding of pertinent details regarding the economy of Michigan, in addition to the types of insurance coverage that are mandatory for corporations that operate within the state.
Economic Trends for Businesses In Michigan
After a long period of stagnant job growth in the early part of the 21st century, MI has been experiencing a steady increase in employment gains. Between 2009 and 2018, the state has enjoyed a period of uninterrupted job growth; the longest stretch of job growth since World War II. According to economists at the University of Michigan. While there has been a slight decline in the rate of job growth, job creation continues and forecasters say will continue for the next two years, into 2021.
In 2018, an estimated 55,200 jobs were created; in 2019, it's expected that 35,800 jobs will be created, and in 2020, economists believe that there will be a total of 39,300 jobs created in Michigan. While that rate of growth is 1.9 percent slower than the job growth rate between 2011 and 2016, it is still a steady increase overall. In total, approximate 683,200 jobs will be created in MI between 2099 and 2020; almost four out of the five jobs that were lost during the early part of the 21st century will be recovered.
While the unemployment rate has steadily improved, it is still above the national average. In March of 2019, the national unemployment rate was 3.8 percent, while in the state of Michigan, it was 4.0 percent. Mid-Michigan has experienced the largest growth rate in the state, and according to forecasters, it looks like that trend will continue, moving forward. Industries that are expected to see the most growth include:
- Energy, due largely to research and development in clean energy
- Food and agriculture
- Transportation and mobility
- Healthcare industry
- Information and technology
In the state of MI, business owners are not legally required to carry liability insurance; but most entrepreneurs opt to invest in a General Liability or Business Owner's Policy (BOP). A commercial auto insurance policy is also required for any businesses that use motor vehicles to conduct any aspect of their business operations. Workers' compensation insurance is also required for any businesses with non-owner employees. While the following forms of coverage are not required, depending on the type of business you operate, they are recommended:
- Data breach insurance
- Business income insurance
- Commercial Umbrella insurance
Additional Resources For Aviation Insurance
Learn about aircraft and aviation liability insurance - a specialized form insurance that provides coverage for hull losses as well as liability for passenger injuries, environmental damage and third-party damage caused by aircraft accidents.
- Insurance Aviation Terms Glossary
- Aerial Applicators
- Flight Schools
- Hot Air Balloon
- Unmanned Aerial Vehicles (UAV) Drone
Aviation policies often have to be written so that they cover the liability of the owner and the operator relating to bodily injury to passengers or to people who aren't passengers, as well as for property damage.
The policy will cover medical costs, including the loss of income, paid to any passengers who are suffering from permanent or total disability but without proving negligence.
In other words, you can consider aviation insurance a sort of liability insurance for the aviation industry.
Aviation insurance often covers various types of risks such as:
Aircraft Hull Insurance - It covers the aircraft itself in the event of accidental damage, regardless of where it might happen. Spares - The policy will cover any damage or the loss of spare parts relating to the aircraft or the engine if they aren't attached to them.
Passenger Legal Liability Insurance - The policy will cover both the airline and the operator in the event passengers face bodily harm, death, or loss of their baggage while in the custody of the airline or its operator.
Third-Party Legal Liability - The policy will cover the airline and the operator when there is damage to a third-party property on the ground for which they may be held liable.
Cargo Liability Insurance - The policy covers damage or loss to the consignments that are carried by the insured airline. The shipper and consignees will claim against the carrier; that's when the insurer will cover the airline. The policy also covers post office mail that is often shipped via airline operators.
Minimum recommended coverage: Building, Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Communication Equipment Floater, Computers, Contractors’ Equipment, Valuable Papers and Records, General Liability, Employee Benefits, Environmental Impairment, Umbrella, Hired and Non-Owned Auto, Workers Compensation, Aircraft Hull, Aircraft Liability & Hangarkeepers Legal Liability.
Other coverages to consider: Earthquake, Equipment Breakdown, Flood, Cyber Liability, Employment-related Practices, Underground Storage Tank, Business Automobile Liability and Physical Damage and Stop Gap Liability.
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