What Is Airport Operators Liability Insurance?
Airport operators liability insurance deals with the liability of the organisation that operates an airport for third-party bodily injury and property damage arising from runways, taxiways, aprons, the terminal, car parks and other aerodrome operations. It is a risk group separate from an airline's liability arising from flight operations.
Aircraft hull, airline liability and ground handling are dealt with briefly on the Aviation Insurance page; this page sets out the airport operator's liability in more detail. This page is general information; it does not imply the scope, acceptance, price or any payment guarantee of a particular policy.
Airport Operator, Airline, Ground Handling and MRO Liability
Several organisations operate at an airport; each one's liability is insured separately and the policy structure varies with who the insured is.
Scroll the table horizontally to see all columns.
| Source of liability | Insurance subject | |
|---|---|---|
| Airport operator | Operating the aerodrome site, terminal and infrastructure | Airport operators liability (this page) |
| Airline / aircraft operator | Operating the aircraft and carrying passengers and cargo | Airline liability; see Aviation Insurance |
| Ground handling provider | Refuelling, baggage, loading and aircraft towing services | Ground handling liability |
| MRO / hangar operator | Aircraft taken into custody and completed maintenance work | Hangarkeeper, products and completed operations; see Aviation Products Liability |
| Tenants and concessionaires | Commercial activities within the terminal and aerodrome | Their own liability policies; the contractual relationship with the operator matters |
Main Areas of an Airport Operator's Liability
- Movement area: runways, taxiways and aprons; incidents arising from surface condition, foreign object debris (FOD) and markings
- Terminal and visitor areas: accidents in areas where passengers, visitors and staff are present (premises liability)
- Vehicle and equipment movement: vehicles and ground equipment on the aerodrome; how vehicle liability is separately insured should be checked
- Car parks and road links: loss caused in car parks and access roads
- Fuel and hazardous substance facilities: loss arising from refuelling facilities; for environmental elements see Environmental Impairment Liability
- Damage to aircraft: damage suffered by an aircraft on the aerodrome; the policy may give a sublimit for aircraft damage or deal with it separately
- Security and emergency services: liability arising from fire fighting and rescue, security screening and similar services
Points to Watch in the Cover Structure
- Limit structure: a combined single limit (CSL) for bodily injury and property damage and an annual aggregate; whether there is a sublimit for aircraft damage or certain covers
- Insureds: whether the operator, tenants, contractors and concessionaires are included as additional insureds; cross liability provision
- War and terrorism: for the war exclusion and extension cover structure in liability policies see Aviation War Risks Insurance
- Environmental pollution: whether there is a sublimit or exclusion for sudden and accidental pollution
- Defence costs: whether they are within or in addition to the limit
- Contractual liability: consistency of liabilities assumed under concession, transfer or lease contracts with the policy
Matters Generally Dealt With by Separate Policies
- Property and business interruption: physical damage to terminals, runways and facilities and loss of income; see Property and Fire Insurance
- Employee accidents: employers' liability; see Employers' Liability Insurance
- Professional error: design, engineering or advisory services; see Professional Indemnity Insurance
- Cyber risks: information systems and operational technology; see Cyber Insurance
- Aircraft and airline liability: not the subject of this policy
This list is an example; which items appear in the policy depends on the wording.
Airport Operation and Insurance in Türkiye
In Türkiye, airport operation is certificated under SHGM's Aerodrome Certification Regulation (SHY-14A; Official Gazette 27/10/2016, no. 29870); the regulation sets the aerodrome operator's obligations on the safety management system, operations manual, plans and appointment of managers. Ground handling is governed by a separate regulation (SHY-22). Airports may be operated through different structures such as public operation, concession or build-operate-transfer; this structure affects how insurance obligations are allocated by contract.
What Information Is Needed for a Quotation?
- Type of airport, its certificate, operating structure (public, concession, build-operate-transfer) and annual passenger and movement numbers
- Runway, apron, terminal and car park information; fuel and hazardous substance facilities
- List of tenants, ground handling providers and contractors, and the insurance requirements in their contracts
- Requested limit, and any need for aircraft damage and war and terrorism extension
- Safety management system and emergency plan information
- Loss history
This list is an example; the information and documents requested vary by insurer and policy structure. Acceptance, requests for further information and terms rest with the relevant insurer.
Frequently Asked Questions
What is airport operators liability insurance?
Is airport operators liability the same as airline liability?
Does an airport policy cover ground handling and MRO risks?
Is damage to aircraft included in an airport policy?
Are war and terrorism risks covered in airport liability?
Is insurance compulsory for an airport operator in Türkiye?
What information is needed for a quotation?
Does property and business interruption insurance come with this policy?
Neolife's Role
Neolife Group can assess the relevant information and contracts, explore suitable local insurance and reinsurance solutions, carry out placement work and compare the quotations received. This does not imply the capacity of any particular insurer or reinsurer, acceptance of cover, price or any commitment to pay; these are subject to the rules of the relevant insurer, to legislation and to the policy terms.