Aviation-related activities: airfields, professionals, associations and events

When you think of air insurance, the images of airlines and passengers naturally spring to mind. However, theaeronautics ecosystem is much broader and more complex. Around the aircraft that fly revolve a multitude of essential players, whose activities generate specific risks and liabilities: the airfield managers who provide the infrastructure, the companies that build, maintain or service the aircraft, the flying clubs that train the pilots of tomorrow or provide leisure flying, and the airshow organisers who put on a show for the public. All these players need tailor-made insurance cover for their particular activities, often focusing on civil liability. Let's find out more about these insurance policies for aviation-related activities.

Insurance for aerodrome operators

Managing an aerodrome, whether it is of international size or more modest, is a complex undertaking involving a wide range of activities and responsibilities. The operator is responsible not only for the maintenance and safety of runways and aprons, but also for the management of buildings (terminals, hangars), equipment (telescopic walkways, lighting systems) and often ancillary services such as restaurants, shops and car parks. Its obligations are defined by a set of specifications, operating agreements and the general regulations (in particular the French Civil Aviation Code). In view of the major risks involved (an accident involving an aircraft on the ground due to a runway defect, a passenger falling in the terminal, damage caused by a service vehicle, etc.), the operator is very frequently subject to a compulsory public liability insurance.

Insurance policies for aerodrome operators are therefore designed to cover this broad spectrum of liabilities. They are strongly adapted to specific activities declared by the operator at the time of subscription (the insurance proposal often details the facilities and services offered). Visit territorial scope In principle, the guarantee covers events occurring on the designated aerodrome site and involving an aircraft or related to the supply of aeronautical goods or services. An extension is sometimes possible for events occurring outside the aerodrome but directly related to the operator's activity (for example, during an external mission by an airport employee).

La coverage The cover offered is generally broad, covering civil liability for bodily injury, property damage and consequential loss resulting from an accident or event for which the operator is liable. Some policies even include more specific cover, such as the loss suffered by a third party following a refusal of carriage or boarding resulting from "inadvertent discrimination".

However, these policies also include numerous exclusions. Some exclusions are almost systematic and cannot be bought back, such as damage resulting from catastrophic natural phenomena (hurricanes, floods, earthquakes, etc.). Other exclusions can often be purchased with an additional premium adapted to the risk: this is often the case for civil liability linked to the reception, storage or distribution of fuel to aircraft (an activity with a high risk of fire/pollution), or for damage linked to acts of terrorism or malicious damage.

In return for the guarantee, the insured operator undertakes contractually to carry out the following activities constant surveillance and to take all preventive measures to maintain its installations in good condition and prevent accidents. Failure to comply with these obligations may justify a refusal of cover by the insurer.

Aeronautical professional liability insurance

Many companies provide goods or services that are essential to the operation of the aviation sector, without themselves being carriers or aerodrome operators. These include companies specialising in the construction, sale, maintenance, repair or modification of aircraft and their components, as well as those distributing fuel, servicing aircraft or providing airport assistance services (baggage handling, passenger assistance, etc.). This also applies to companies that carry out specific flights related to their business: maintenance check flights, test flights, display, demonstration or delivery flights. All these companies commit their professional indemnity (RC Pro) for their services.

To meet this need, insurers are offering professional aviation liability policies, often structured on a modular basis based on three main guarantees, which can be taken out separately or together:

• Guarantee A: Operating liability. This is the basic cover that covers the company's liability for bodily injury and material damage caused to third parties (customers, visitors, other companies, etc.) as a result of its day-to-day activities, its staff, the premises and facilities it uses, or things (tools, vehicles, etc.) in its care during its operations. Extensions are possible to cover specific risks such as fire, water damage, accidents caused by service vehicles not owned by the company, or even certain accidents in the workplace not covered by Social Security. The main exclusions concern damage to property entrusted to the company (covered by Guarantee B), damage resulting from major construction or demolition work, and often third-party liability linked to the handling of fuel (which requires a specific extension).
• Guarantee B: Liability for entrusted property. This cover is essential for companies that take charge of goods belonging to their customers, particularly aircraft or their components (engines, equipment, etc.). It covers the company's liability for damage caused by property entrusted to it (for storage, repair, maintenance, etc.), as well as damage caused by these goods could cause to third parties while in its custody (for example, an aircraft undergoing maintenance that catches fire). The limits of this cover are that it must comply with aviation safety regulations and cannot be combined with cover A or C for the same damage.
• Guarantee C: After-sales liability / Products. Also known as product liability cover, this covers the company's liability for bodily injury and property damage caused to third parties by its products. products it has manufactured, sold or distributed, or by the services carried out (repairs, maintenance, etc.), after delivery or completion. This is a fundamental guarantee, because a defect in a part or a poorly carried out repair can have catastrophic consequences long after the company has intervened. However, this guarantee does not generally cover the cost of replacing or repairing the defective product or service itself (known as "withdrawal costs" or damage to the product itself), or a simple defect in performance or efficiency if it does not cause damage to a third party. The guarantee is generally triggered by the date on which the damage occurs during the period of insurance, regardless of the date on which the product was delivered or the service provided (the "claims basis" or "damaging event" principle, depending on the policy).

Specific insurance for aeronautical associations (flying clubs)

Aeroclubs and other associations whose purpose is the practice and development of aeronautical activities (powered flight, gliding, microlighting, etc.) also have specific insurance needs, particularly in terms of civil liability. Although they can take out "hull" policies for their aircraft and professional liability policies for some of their activities (light maintenance, etc.), a special type of insurance, often referred to as the "hull" policy, is required. B2 AgreementThe company's general liability policy (Convention B type) is adapted to their context.

This policy is generally taken out by the president of the association, acting on behalf of the association but also, often, on behalf of the federation to which it is affiliated. It covers statutory activities of the association: instructional flights, leisure flights (tourism), flights for travel related to the association's activity (meetings, etc.). Flights carried out for hire or reward are in principle excluded, but there are some important exceptions to this rule, such as first flightsthe introductory flights and even flights for medical treatment (light medical evacuation) may be covered, even if a charge is made, subject to compliance with strict safety conditions.

This agreement has a number of distinctive features compared with conventional civil liability:

• It precisely defines the "theft of instruction (flight where the pilot at the controls does not yet have a private pilot's licence).
• Above all, it provides for an interesting derogation: whereas in traditional liability, the insured (the association and its directors) are not covered for their own damage, in this case, the insured (the association and its directors) are covered for their own damage, whereas in traditional liability, the insured (the association and its directors) are covered for their own damage. association members (including student pilots, instructor pilots and recreational pilots) can be considered as "third parties in their mutual relations. In practical terms, this means that if a member injures another during an activity of the association (for example, a student pilot injures his instructor during a false manoeuvre), the association's liability (and therefore its insurance) may be engaged to compensate the bodily injury victim. This provision is essential to the operation of flying clubs. However, damage to the aircraft itself flown by the member responsible is generally excluded (it is covered by "body" insurance with any excess).
• For authorised expensive flights (first flights, introductory flights, etc.), strict conditions apply: the pilot must generally hold a commercial pilot's licence or, failing that, have been specifically approved by the insurer. Passengers must also be issued with a valid ticket.

Insurance for organisers of air events

Organising an airshow, an air festival or even first flights outside a permanent aerodrome is an activity that requires authorisation from the prefect. The decree of 4 April 1996 on aerial events makes this authorisation conditional on the organiser taking out an insurance policy. public liability insurance covering the risks associated with the event.

La aerial event is defined as any evolution of aircraft or parachuting intended to offer a public spectacle. First flights organised outside the usual platforms are treated in the same way.

The specific insurance policy for these events, which is limited to the duration of the event, has a number of original features.

• The persons whose liability is guaranteed are numerous:
  • L'organiser principal (natural or legal person assuming material and financial responsibility) and its statutory officers.
  • The members of the organising committee, the flight director, and all their servants or assistants while on duty.
  • The civilian participants Owners, operators, pilots, crews of aircraft taking part in the show, parachutists, etc., and their agents.
  • L'StatusIf military personnel or equipment are made available to the organiser for supervision or safety (but not for their direct participation in the air show, where the State remains its own insurer).
  • Extensions are possible, by express stipulation, to cover the liability of military participants or that of employees of a person governed by public law assigned to the security service.
• L'scope of cover is, in principle, very broad. It covers the pecuniary consequences of civil liability incurred as a result of damage caused to spectatorsto third party (local residents...), to other participants (collision between aircraft in flight or on the ground...), to the military personnel and its equipment. The insurer also guarantees the French State reimbursement of any sums it may have paid out to its personnel on secondment in respect of their status (disability pensions, etc.). Additional cover may be added to specifically cover first flight passengers or damage to temporary facilities (grandstands, tents, etc.).
• The exclusions cover. In addition to the general exclusions (failure to comply with flight safety rules, etc.), there are specific exclusions such as damage resulting from the operation of ancillary attractions not managed directly by the organiser (merry-go-rounds, shooting galleries, lotteries, etc.), or food poisoning (unless caused by products sold in refreshment bars or restaurants operated directly by the organiser). The purpose of these exclusions is to refocus cover on the aviation risk itself.

Managing an aerodrome, providing aeronautical services or organising an air event involves specific and sometimes complex responsibilities. To ensure that your insurance cover is adequate and complies with the regulations and the real risks of your activity, don't hesitate to ask for an analysis from our practice.

Sources

• Standard policies issued by French insurers for Aerodrome Operators, Professional Aeronautical Liability, Aeronautical Associations (standard B2 Agreement), Air Show Organisers (implicit reference)
• Civil Aviation Code (general principles and specific regulations)
• Order of 4 April 1996 on air events
• Insurance Code (general principles of civil liability)