Flight School Insurance Policy Information
Flight School Insurance. Flight schools represent one of the two core parts of pilot training.
Flying schools teach students how to fly various types of aircraft, from small single-engine airplanes to helicopters to crop dusters to multi-engine commercial jets, and may even include drones, or unmanned aerial vehicles (UAVs).
Flight instruction generally includes classroom teaching plus instructor-assisted flight training, culminating with the student learning to pilot the aircraft alone.
Instructors must be licensed by the Federal Aviation Administration (FAA) to fly and teach for each type of aircraft for which they are offering instruction.
Facilities are generally rented from a smaller municipal or rural airport as large commercial airports cannot accommodate the frequent take-offs and landings required in flight instruction operations. The flight school may rent aircraft to students.
While ground schools offer the theoretical knowledge that future pilots will require, including understanding the mechanics of flight and weather patterns, flight schools equip the pilots of tomorrow with the practical training that will enable them to responsibly and skillfully pilot various kinds of aircraft.
Both ground schools and flight schools are essential portions of pilot training, and are required to get a pilot's license.
There is no doubt that flight schools provide an essential service, as such, as they prepare both sport pilots or aviation enthusiasts and commercial pilots for their careers.
These schools also, on the other hand, take on an enormous amount of risk - and you have to look no further than the nature of flying, and everything that can go wrong, to understand this.
To protect themselves from potentially catastrophic financial losses, it is crucial to get the best flight school insurance. What might that entail? This brief guide offers insights.
Flight school insurance protects flying instruction operations from lawsuits with rates as low as $187/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked flying school insurance questions:
- What Is Flight School Insurance?
- How Much Does Flight School Insurance Cost?
- Why Do Flight Schools Need Insurance?
- What Type Of Insurance Do Flight Schools Need?
- What Does Flight School Insurance Cover & Pay For?
What Is Flight School Insurance?
Flight school insurance is a type of insurance that protects flight schools and their students against potential risks and losses.
This insurance covers various aspects of flight training, including aircraft damage, student pilot liability, instructor liability, and others. It also covers costs related to ground instruction, as well as damage to flight training equipment and facilities.
The main purpose of flight school insurance is to provide financial protection to the flight school and its students in case of accidents or other unforeseen events that could result in harm, damage, or loss.
How Much Does Flight School Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small flight schools ranges from $187 to $229 per month based on location, number of students and planes, revenue, claims history and more.
Why Do Flight Schools Need Insurance?
Flight training facilities need to be insured for numerous reasons - to meet their legal obligations, to be able to partner with lenders, and simply because they, just like other businesses, face a great deal of uncertainty.
Both the industry-specific risks flight schools face and the universal risks common to all commercial ventures threaten, at all times, to endanger the future of a flight training center.
Aircraft can sustain damage, of course, both on the ground and while in the air. In case of a serious malfunction, the consequences can be of a truly devastating magnitude. Flight schools are unlikely to be able to cope with the resulting financial losses on their own.
Furthermore, however, flying schools still have to deal with the same hazards as all other businesses. Your premises could be struck by an act of nature, like an earthquake or hurricane, inflicting tremendous damage and unimaginable expenses.
Theft and vandalism are two other examples of threats, but even a small mishap as simple as a visitor slipping on a wet floor may lead to costly, drawn-out, lawsuits.
Above all, you need flight school insurance because it offers your flying school the best chance of survival if it is faced with a major peril.
What Type Of Insurance Do Flight Schools Need?
Every flight school is unique. The exact aircraft you own and operate, your amenities, your number of employees, and the location of your flight training facility, are just a few of the many factors that determine not only what types of coverage you need but also the amounts for which you need to insure yourself.
Because the path towards full coverage can be hard to navigate, it is essential that you evaluate your risk profile with a commercial insurance broker who is deeply familiar with the aviation industry.
Among the essential types of flight school insurance coverage that flying schools will need to carry are, meanwhile:
- Commercial Aviation: Multiple policies make up commercial aviation insurance. Some of them cover aircraft while they are on the ground, while others cover them in flight. Liability insurance for flight schools helps cover your legal costs in the event of a catastrophic accident. This types of coverage will ideally be obtained from insurers who specialize in your niche.
- Commercial Property: Flying schools will also need commercial property insurance, to help them manage the financial losses they would sustain if their facility were to be impacted by unforeseen circumstances such as acts of nature, theft, and vandalism. While it covers some of your smaller assets alongside your building and surrounding infrastructure, be aware that larger assets, such as airplanes and vehicles, do not fall under property insurance.
- Commercial General Liability: This type of flight school insurance coverage offers you protection in the event that you were to be met with a lawsuit alleging that your business was responsible for causing bodily injury or property damage, but only in general circumstances. Those would include, for instance, a visitor being injured because a bookshelf in your office falls on them.
- Workers' Compensation: Should an employee become injured over the course of their job, workers comp will cover their medical bills as well as any income they lose in the event that they require time off work.
Remember that these examples of important flight school insurance coverage may not fully meet your particular needs - to learn more, you are advised to consult a seasoned commercial insurance broker.
Flight School's Risks & Exposures
Aircraft hull exposure covers the aircraft and its equipment. 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 aircraft must be maintained according to manufacturers' specifications, and records of such maintenance kept in a central location.
Exposures increase substantially when the aircraft is rented or subcontracted to others without a pilot and when the aircraft is used by any student without the instructor also being on-board.
Aircraft liability exposure covers injuries to passengers and damage to property of others. Pilots must meet all FAA regulations, including current licensing, for the helicopter. They must participate in regular training activities to maintain skills.
Aircraft must be maintained and records kept of the maintenance. Crash landings can result in severe injury or death to students.
Hangarkeepers legal liability exposure, which is similar to garagekeepers legal liability, provides coverage while non-owned aircraft are in the hangar. Issues to consider depend upon who is responsible for the aircraft, what services are provided, and what security arrangements are in place for the hangar.
Property exposures usually consist of classrooms, an office, and a hangar for aircraft owned or leased by the flight training operation. Ignition sources include heating and air conditioning systems and electrical wiring.
Hangars used for storing aircraft will increase the exposure, particularly if aircraft are serviced and fueled on premises. Repair operations, especially welding and painting, must be monitored with controls in place.
Fuel and other flammables must be adequately stored and controlled away from combustibles. Smoking should be prohibited. Aircraft 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. Monetary transactions must be monitored and audited on a regular basis to prevent employee theft.
Ordering, billing and disbursements should be separate functions. Annual audits should be conducted. Inventory should be marked and physically counted on a regular basis.
Inland marine exposure is from accounts receivable if there are billings, computers, and valuable papers and records for FAA registrations, students' and suppliers' information. All should be duplicated and copies kept off site for easy replication following a loss.
Mobile teaching equipment should be covered under a mobile equipment floater or a commercial articles floater. All items should be marked and appropriate security used to prevent theft. There may be bailees liability for students' items kept in lockers.
Premises liability exposure is generally low as the access by the public is limited to students. To prevent slips and falls, the classroom and office area should be well maintained with aisles clear and flooring in good condition. Student access to aircraft should be limited to specific times.
Instructors must accompany students at all times. The issue of the security of passengers and employees from attacks by terrorists, hijackers, extortionists, and others remains high.
Adequate security must be in place throughout the premises, with entrance points inaccessible to unauthorized persons. The school should conduct background checks on prospective students.
Professional liability exposure is high for the instructors and the flight school. Flight instructors must be licensed by the FAA. They have a major responsibility for keeping the airways safe by adhering to standard pre-flight, in-flight, and post-flight procedures.
Workers compensation exposure is significant. Fire and explosion are a constant concern in a fueling area and from repair operations that include welding or painting. Repair operations involve significant chances for injury due to slips and falls, burns, falling pieces, strains and sprains on backs from lifting and working in awkward positions.
Safety equipment should be required. Propellers and other moving parts can injure an employee during operation. All controls must be in place and carefully monitored. Aircraft crash exposure is high due to instructors flying with student operators.
Commercial auto liability exposure is generally limited to hired or non-owned liability exposure if employees use their vehicles on flight school business. If there are owned vehicles, all drivers must have appropriate licenses and acceptable MVRs. Vehicles must be well maintained with records kept in a central location.
What Does Flight School Insurance Cover & Pay For?
Flight schools may face lawsuits for a variety of reasons, including:
Negligence or Error: Flight schools may be sued if an instructor or pilot makes a mistake or exhibits negligence during flight training, resulting in injury or property damage. Flight schools can obtain liability insurance to cover legal costs and damages if an instructor or pilot is found negligent. For example, if an instructor forgets to properly secure a student's harness, causing the student to fall and suffer injuries, liability insurance can help pay for legal fees and any damages awarded in a lawsuit.
Breach of Contract: Flight schools may be sued for failing to provide the agreed-upon services or for breaching a contract. Flight schools can obtain professional liability insurance, also known as errors and omissions insurance, to cover legal costs and damages if they are sued for breach of contract. For example, if a flight school fails to provide the agreed-upon number of hours of flight training, resulting in a breach of contract, professional liability insurance can help cover legal fees and damages.
Discrimination: Flight schools may be sued for discrimination based on age, gender, race, or disability. Flight schools can obtain employment practices liability insurance to cover legal costs and damages if they are sued for discrimination. For example, if a flight school is sued for age discrimination in hiring practices, employment practices liability insurance can help pay for legal fees and any damages awarded in a lawsuit.
Safety Issues: Flight schools may be sued for safety issues such as inadequate maintenance or training programs, or for failing to follow safety regulations. Flight schools can obtain aviation insurance to cover legal costs and damages related to safety issues. For example, if a flight school is sued for failing to properly maintain its aircraft, resulting in an accident, aviation insurance can help pay for legal fees and damages.
In conclusion, flight schools can face a variety of lawsuits, but insurance can protect them from the financial consequences. It is important for flight schools to carefully consider the risks they face and obtain appropriate insurance coverage to protect themselves.
Commercial Insurance And Business Industry Classification
- SIC CODE: 4581 Airports, Flying Fields, And Airport Terminal Services
- NAICS CODE: 611512 Flight Training
- Suggested Workers Compensation Code(s): 7422 Aviation - NOC - Other Than Helicopters - Flying Crew, 7431 Aviation - Air Charter or Air Taxi - Flying Crew
Description for 4581: Airports, Flying Fields, And Airport Terminal Services
Division E: Transportation, Communications, Electric, Gas, And Sanitary Services | Major Group 45: Transportation By Air | Industry Group 458: Airports, Flying Fields, And Airport Terminal
4581 Airports, Flying Fields, And Airport Terminal Services: Establishments primarily engaged in operating and maintaining airports and flying fields; in servicing, repairing (except on a factory basis), maintaining, and storing aircraft; and in furnishing coordinated handling services for airfreight or passengers at airports. This industry also includes private establishments primarily engaged in air traffic control operations. Government air traffic control operations are classified in Public Administration, Industry 9621. Aircraft modification centers and establishments primarily engaged in factory type overhaul of aircraft are classified in Manufacturing, Major Group 37, and flying fields maintained by aviation clubs are classified in Services, Industry 7997.
- Air traffic control, except government
- Aircraft cleaning and janitorial service
- Aircraft servicing and repairing, except on a factory basis
- Aircraft storage at airports
- Aircraft upholstery repair
- Airfreight handling at airports
- Airport hangar rental
- Airport leasing, if operating airport
- Airport terminal services
- Flying fields, except those maintained by aviation clubs
- Hangar operation
Flight School Insurance - The Bottom Line
To protect your operations, employees and students, having the right flight school insurance coverage is essential. To discover what options are available to you, how much coverage you should invest in and the premiums - speak to a reputable commercial insurance broker.
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
- Specialty Aircraft And Airports
The aviation industry requires insurance for a number of reasons
Firstly, it is a highly regulated industry with strict safety standards that must be met. Accidents or incidents can occur despite these measures, and insurance helps to cover any resulting damages or liability.
Secondly, the cost of repairing or replacing aircraft and associated equipment can be extremely high. Insurance helps to mitigate these costs in the event of an accident or damage.
Thirdly, the aviation industry operates on a global scale, with aircraft and personnel often crossing international borders. Insurance helps to protect against any legal issues that may arise in different countries.
Finally, the aviation industry is constantly evolving and facing new risks and challenges. Insurance helps to provide a safety net in the face of these unknown risks.
In summary, insurance is an essential component of the aviation industry as it helps to cover potential damages, liability, and new risks. It allows the industry to operate smoothly and safely, ensuring the safety and well-being of both passengers and crew.
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.