For more on this part of the insurance industry:
1. visit our aircraft insurance page for a look at all products in this sector
2. or focus in on all of the airport hangar facilities insurance products available on IB Markets!
Airport hangar facilities insurance is a specialised policy designed to protect owners and operators of aircraft hangars from various risks. This insurance covers damages to the hangar structure, stored aircraft, and provides liability protection against third-party claims.
These components ensure that hangar operators are financially safeguarded against:
Incidents like the 2024 helicopter crash into the Hilton DoubleTree Hotel in Cairns highlight the importance of comprehensive hangar insurance for unforeseen events. Securing appropriate airport hangar facilities insurance is essential for mitigating financial risks associated with hangar operations.
Airport hangar facilities insurance in Australia is affected by climate change, such as severe storms and flooding that damage infrastructure. Increasing digitisation also exposes hangars to cyber-attacks targeting critical systems. Alongside these risks, industry trends are shaping insurance needs:
predictive AI technology: insurers use AI to predict risks and customise policies, as explained in ICA's AI initiatives for Australian insurers
enhanced customer experience: insurtech innovations drive personalised solutions
sustainability initiatives: green technologies like energy-efficient designs are prioritised in hangar insurance, supported by Australian insurers' net-zero goals
Stricter environmental and safety regulations are increasing operational costs and affecting premiums in airport hangar insurance.
Hangar keeper's liability insurance protects hangar owners and operators from legal responsibility for damage to non-owned aircraft under their care, custody, or control.
This coverage is important for businesses involved in storing, maintaining, or servicing aircraft, as it safeguards against potential financial losses arising from accidents or negligence.
How much is airplane hangar insurance?
The cost of airplane hangar insurance in Australia depends on factors such as hangar size, location, and the value of stored aircraft. Premiums typically range from $1,500 to $10,000 annually, depending on these variables.
Hangar rental costs vary by location, with rates ranging from $25 to $70 per week. These prices depend on factors like location, amenities, and aircraft size. Combining insurance premiums and rental costs gives a clearer picture of overall ownership expenses.
Airport hangar facilities insurance is critical for various stakeholders in the aviation industry. This coverage is crucial for:
hangar owners and operators: protects against liabilities arising from damage to stored aircraft and property
aircraft maintenance and repair organisations: covers potential risks associated with servicing and handling aircraft
fixed base operators (FBOs): provides protection for businesses offering aeronautical services, including fuelling and hangarage
private aircraft owners with hangar facilities: safeguards personal assets and aircraft stored within private hangars
These entities face unique risks, making specialised airport hangar facilities insurance coverage vital for financial protection.
A hangar is a closed building structure designed to house aircraft. Its primary functions include:
protection: shields aircraft from weather-related damage like rain, snow, and sunlight
maintenance: provides a safe space for inspections, repairs, and servicing
storage: secures aircraft from theft, vandalism, and exposure when not in use
Hangars are integral to airport operations, guaranteeing that aircraft remain in optimal condition and are readily available for flight activities.
This insurance offers a range of coverage options. These include:
property coverage: protects the hangar structure and contents, including tools and equipment, against fire, theft, and natural disasters
hangar keeper's liability: covers damages to third-party aircraft stored or serviced within the hangar
premises liability: protects against claims for injuries or damages occurring on the hangar property
business interruption insurance: compensates for lost income due to disruptions caused by covered events like fires or storms
Tailored airport hangar facilities insurance helps businesses minimise financial risks and makes sure of seamless operations in the aviation sector.
