When people think of aviation insurance, they often picture high-altitude incidents: midair foreign object damage, weather-related emergencies, and mechanical failures. But most losses don’t happen in the sky—they happen on the ground.
From hangar rash and fueling incidents to towing damage and contractor errors, ground operations are responsible for a surprising number of aviation insurance claims. Yet, many aircraft owners and operators don’t realize how exposed they are on the tarmac until something goes wrong.
Let’s break down some of the most common—and most overlooked—risks aircraft owners face, and where insurance gaps tend to emerge.
1. The Hidden Cost of Hangar Rash
Hangar rash sounds harmless, but it can be costly. Whether it’s a wingtip scrape from a tight maneuver, an inadvertent bump from another aircraft, or damage from tools left unsecured in the space, these minor collisions can lead to significant repair bills.
The trouble is that not all hangar owners carry adequate liability insurance—or require it from third-party users. If your aircraft is damaged in a shared or leased hangar, recovery may depend on who’s at fault and whether proper coverage was in place. For many owners, this becomes a frustrating game of finger-pointing and legal ambiguity.
2. Towing and Ground Handling Incidents
You trust your aircraft to trained personnel on the ground—but even experienced staff make mistakes. Improper towing, failure to follow standard procedures, or using damaged equipment can result in gear misalignment, airframe stress, or even accidents.
Too often, these incidents fall into a gray area: Who was responsible? Was the towing company insured? Did your policy include ground operations liability, or does it only kick in once the aircraft is airborne?
Fast-moving ramp environments introduce risk that deserves the same scrutiny as in-flight operations. Yet, it’s rarely treated that way during insurance planning.
3. Third-Party Maintenance and Contractor Coverage Solutions
Many aircraft owners outsource key services—detailing, fueling, avionics upgrades, inspections—to specialized vendors. While this makes sense operationally, it introduces complexity from an insurance standpoint.
If a contractor’s work leads to an accident or operational issue, their insurance should respond. But if they’re underinsured—or your policy doesn’t account for their exposure—the burden could fall on you.
It’s critical to evaluate not just your own policy, but also the contractual requirements and liability protections of everyone who touches your aircraft.
Predictive analytics is also a valuable tool for managing benefits costs. By anticipating which health concerns may lead to higher claims, employers can adjust plan design, wellness programs, and care access to help avoid unnecessary expenses. This allows organizations to remain financially responsible while continuing to support their employees.
4. FBOs and Airport Operations: Layers of Liability
Fixed-base operators (FBOs), airport facilities, and hangar complexes introduce another layer of risk. Many owners assume that operating under the umbrella of an FBO ensures adequate protection. But the reality is more nuanced.
For example, if a fueling mishap occurs under the FBO’s supervision but damages your aircraft, who pays? If your aircraft is hangared on their property but another tenant causes damage, is it a property issue or a liability claim?
These are the kinds of scenarios that lead to drawn-out claims processes—and headaches for owners who assumed they were covered.
5. Policies That Don’t Match the Aircraft’s True Use
Finally, many gaps emerge not from obscure legal clauses, but from everyday misalignment between how the aircraft is actually used and how it’s insured.
Is the aircraft occasionally used for instruction? Are employees piloting it for both business and leisure? Has your hangar setup changed recently? Even small shifts in operational detail can affect coverage needs.
Too often, owners go years without revisiting their policy—until something happens. Then it’s too late.
What to Do Next
If you own or operate an aircraft, ground risks deserve your full attention. They’re frequent, often expensive, and surprisingly underinsured. Review your policy language. Ask tough questions about hangar use, towing procedures, and third-party vendor coverage. Make sure you’re not relying on someone else’s policy to protect your investment.
Good insurance solutions don't just cover the air—they help protect everything that happens before you ever leave the ground.
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