Re: CAA: Mutual Help List, FBO Insurance

["Michael A. Hodges" <mhodges@xxxxxxxxxxxxxxxxxxx>]

Typically, an FBO can obtain coverage, just maybe not at a premium level
that they would like.  Before you do anything to "help" them, I would
do some research as to why they were cancelled.  If it was due to
an extensive number of claims and/or accidents, then maybe your best bet
would be to spend your time developing an RFP for another FBO.  Remember,
the insurance requirement is designed to protect the airport in the case
of an unfortunate event.  While I have been told the risk to an airport
is minimal, the airport sponsor generally represents the "deepest pockets"
available if someone decides to sue.

Good Luck!

Michael A. Hodges, MAI
President/CEO
Airport Business Solutions
(678) 461-4300

Robert Grierson wrote:

Last year I asked our group what levels of insurance we require for our FBOs. In each case it was 1 - 2 Million. That seems pretty consistent with what I've heard elsewhere and what we require in Chico. I just learned that my FBO will not be renewed in September. This presents an interesting quandary for a non-hub.

Has any other California FBO been placed in this situation since 9-11?
Has the airport been able to assist the FBO in obtaining coverage?
If not, does anyone have any recommendations?

Robert A. Grierson, A.A.E.
Chico Airport Manager
Chico, California
(530) 879-3910
http://www.ci.chico.ca.us/Airport/Home_Page.asp

   Find past Mutual Help topics in the CAA Help Forum
http://www.californiaaviation.org/cgi-bin/dcforum/dcboard.cgi?confÜConfID6

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