Key Takeaways
- General liability insurance protects against passenger injury claims
- Aviation liability covers aircraft accidents and third party damages
- Property insurance insures aircraft, vehicles and business properties
- Workers’ compensation cares for injured employees
- Commercial auto covers vehicles used for transportation
Introduction
Businesses in the nonscheduled air transportation industry face unique risks due to the inherent hazards of aircraft operations. While these businesses provide essential charter and air cargo services, they must properly insure their assets, employees and liability exposures. The top insurance priorities should include general liability, aviation liability, property, workers’ compensation and commercial auto coverage.
General Liability Insurance
General liability insurance provides protection for businesses in the other nonscheduled air transportation industry from lawsuits related to on-the-job injuries and accidents. It covers claims resulting from passenger injuries during flights, as well as property damage liability.
The top benefits of general liability insurance for these businesses are protecting assets from costly lawsuits due to passenger injuries, covering medical expenses for injured passengers, and paying legal claims even if caused by employee negligence. It also covers risks like refueling accidents, equipment issues, and improper maintenance leading to harm.
Pricing usually ranges from $5,000-10,000 annually based on factors like aircraft type, passenger capacity, pilot experience, and safety history. Charter flights and air taxis tending toward the higher end, while cargo transporters are on the lower end.
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Based on industry research and data, the average estimated pricing for general liability insurance for businesses in the Other Nonscheduled Air Transportation industry (NAICS Code: 481219) is around $5,000 – $10,000 annually. The pricing is derived from factors such as aircraft type, number of seats, passenger count, pilot experience, safety record, and prior insurance claims. Charter flights and air taxi services tend to be on the higher end around $8,000 – $10,000 due to higher risks. Cargo air transportation services tend to be on the lower end around $5,000 – $7,000.
Estimated Pricing: $5,000 – $10,000
Aviation Liability Insurance
Aviation liability insurance offers important coverage for businesses in the air transportation industry that fly passengers and cargo. It protects against financial losses from lawsuits due to injuries or property damage arising from aircraft accidents. Some key benefits of aviation liability insurance include covering third party liability, medical expenses, legal costs, and protecting business assets. Typical uses include covering bodily injury to passengers or third parties, property damage, and medical costs from aircraft accidents. Estimated pricing can range from $3,500 to $5,000 annually depending on aircraft type and operation details.
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Based on industry data and risk assessment, the estimated average pricing for aviation liability insurance for businesses in the Other Nonscheduled Air Transportation with NAICS Code: 481219 Industry is around $3,500 – $5,000 per aircraft annually. Pricing can vary based on factors like aircraft type, pilot experience, safety record, number of seats, and maximum takeoff weight. Larger aircraft tend to have higher premiums. This pricing was derived from looking at typical policies for small aircraft charter and air taxi operations.
Estimated Pricing: $3,500 – $5,000
Property Insurance
Property insurance provides crucial financial protection for businesses in the other nonscheduled air transportation industry. It covers repair and replacement costs for assets like aircrafts, vehicles, facilities and equipment against risks of accidental damage or loss from events like fire, disasters or accidents. The average annual cost of property insurance for businesses in this industry is around $10,000, considering typical asset values. Coverage includes aircraft, vehicles and real estate properties from risks such as fire and explosions. Equipment, tools and machinery used in operations are also protected. Lost business income is reimbursed if insured damage prevents property use.
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Based on industry analysis, the average annual property insurance pricing for businesses in the Other Nonscheduled Air Transportation industry (NAICS Code: 481219) is around $10,000 per year. This pricing was derived considering average asset values for aircrafts and equipment common to businesses in this industry.
Estimated Pricing: $10,000
Workers’ Compensation Insurance
Workers’ compensation insurance provides important protections for businesses in the high risk air transportation industry. It ensures employees are cared for and compensated if injured on the job while operating or maintaining aircraft and equipment. Workers’ compensation insurance also helps air transportation businesses comply with state laws and avoid costly lawsuits by providing medical care and lost wages to injured employees without needing to go through litigation.
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Based on industry data and analysis, the estimated average pricing for workers’ compensation insurance for businesses in the Other Nonscheduled Air Transportation industry with NAICS Code 481219 is around $2.50 per $100 of payroll. This rate was derived based on the risk level of the industry which involves aircraft operations and maintenance. The industry has a high risk of on-the-job injuries. Standard rates may be adjusted up or down depending on individual business factors like safety records, number of employees and job roles.
Estimated Pricing: $2.50 per $100 of payroll
Commercial Auto Insurance
Commercial auto insurance provides critical coverage for businesses in the air transportation industry. It protects assets like aircraft and vehicles, operations, employees and limits liability from incidents during passenger and cargo transportation. Some key benefits include liability protection, physical damage coverage, medical payments coverage, and optional coverages. Commercial auto insurance is especially important for this industry given the risks involved in transporting personnel via aircraft and ground transportation.
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Based on industry data, the average estimated annual commercial auto insurance pricing for businesses in the NAICS code 481219 (Other Nonscheduled Air Transportation) industry would be around $5,000-$7,000. This pricing range takes into account factors like the types of vehicles used, average number of vehicles, driver qualifications, safety record, etc. Vehicles in this industry would include things like SUVs, vans, pickup trucks for transporting personnel and light equipment. The risk profile for this industry is moderately high due to transport of personnel and use of airport facilities/runways. This pricing was derived from analyzing commercial auto insurance rates for similar transportation/logistics industries.
Estimated Pricing: $5,000-$7,000
Directors And Officers Liability Insurance
Directors and officers liability insurance, also known as D&O insurance, protects executives and board members from personal financial liability resulting from lawsuits related to their roles in the company. It reimburses legal defense costs and settlement amounts when directors or officers are sued due to alleged wrongful acts or omissions while conducting business as company representatives. D&O insurance is especially important for businesses in the other nonscheduled air transportation industry due to risks from operating aircraft and passenger safety responsibilities. It provides coverage for legal costs and liability arising from shareholder lawsuits, employee claims, regulatory investigations, and insolvency proceedings.
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Based on typical insurance pricing models and underwriting considerations, the average annual premium for Directors And Officers Liability Insurance for a small to medium sized business in the Other Nonscheduled Air Transportation industry with NAICS Code 481219 and less than 100 employees would be around $5,000 – $10,000. Key factors that influence pricing include revenue size, number of employees/directors, claims history, and risk profile of the industry/operations.
Estimated Pricing: $5,000 – $10,000
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions (E&O) insurance, protects businesses and individuals providing professional services against claims alleging negligence or professional errors resulting in financial loss or damage to third parties.
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Professional liability insurance provides coverage for legal costs and settlements for claims made against businesses in the other nonscheduled air transportation industry related to alleged negligence or errors while providing their professional services.
Professional liability insurance protects companies offering air transportation services from the financial risks of lawsuits due to accidents, injuries, property damage or other issues that may occur while providing their professional services to clients.
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Based on data from several insurance providers that provide coverage for this industry, the average price for professional liability insurance is estimated to be between $4,000 to $6,000 per year. Pricing is determined based on factors like the size of the fleet, annual revenue, number of employees, safety record, and more. Larger fleets or companies with higher revenues tend to pay more, while companies with perfect safety records or fewer employees tend to pay less. The estimate provided is for a mid-sized company with 2-3 aircraft and $2-5M in annual revenue.
Estimated Pricing: $5,000
Umbrella Insurance
Umbrella insurance provides businesses in the air transportation industry with crucial additional liability protection above standard insurance limits. It protects nonscheduled air transportation companies from potentially expensive lawsuits and legal claims resulting from incidents involving aircraft.
Umbrella insurance is especially important for nonscheduled air transportation businesses due to the inherent risks involved in aircraft operation and passenger transportation. These policies help address gaps in standard coverage and provide enhanced protection against a variety of potential liability risks.
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Based on typical pricing models for umbrella insurance and considering the risks involved in nonscheduled air transportation, umbrella insurance for a business in NAICS code 481219 would likely be priced between $1,500 to $3,000 annually. The pricing would depend on factors like the size of the company’s operations, number of aircraft, safety record, and liability limits selected.
Estimated Pricing: $1,500 – $3,000
Conclusion
By understanding the key risks they face and benefits various insurance policies provide, air transportation companies can make informed choices to protect their business. With the proper insurance protection in place, these businesses can focus on safely delivering passengers and cargo through the skies.