Flight School Business Insurance
Getting insurance for your flight school is essential.
Flight schools must be sheltered against the numerous perils that come with operating such a high-risk business, making it essential to have insurance coverage. With insurance, your flight school can be shielded from property damage and financial loss, and most importantly, from bodily injury.
For example, a student sues you alleging that their injuries incurred during a lesson will cause a lifetime of lost wages. Fortunately, for situations like that, there is insurance, which will cover legal fees, as well as damages if you were to lose the case.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Flight School
General liability insurance is — generally speaking — one of the most important insurance policies for flight schools.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
While general liability insurance provides coverage for numerous risks, it may not be sufficient to cover all the risks that your business faces. To address these additional risks, special policies such as those that offer specific protections may be necessary.
- Hull Insurance: This type of insurance provides coverage for damages or loss of the aircraft itself. Hull insurance can be particularly important for flight schools, as they typically own and operate several aircraft.
- Instructor Liability Insurance: Flight schools may require their flight instructors to carry instructor liability insurance, which provides coverage for damages or injuries that may result from a flight instructor's actions or advice.
- Hangarkeepers Insurance: Flight schools may also require hangarkeepers insurance, which provides coverage for damages to aircraft that are parked or stored in the school's hangar or on its property. This type of insurance can be particularly important if the flight school provides aircraft storage or maintenance services to its clients.
When acquiring your business coverage, you will generally be able to choose between the following two types of insurers:
- Traditional brick and mortar insurers: These insurers, for example GEICO, offer their products through a network of brokers and agents. That adds costs and higher prices must be charged to recuperate those costs.
- Online insurers: Insurtechs, like Policygenius and Next, are often able to offer lower prices compared to traditional insurers due to their digital-first approach and lower overhead costs.
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Cost of General Liability Insurance
On average, flight schools in America spend between $450 - $1,000 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a flight school to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
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Common Situations That General Liability Insurance May Cover for a Flight School
Example 1: While visiting your flight school, a potential student trips over some equipment he fails to see, breaks an arm in the resulting fall, and asks you to pay for his medical treatment. General liability insurance would cover his medical bills and any related damages if he files a lawsuit.
Example 2: The owner of a competing flight school files a lawsuit against your business, claiming you libeled her school in a recent advertising campaign. While you disagree with the claim, you know you need legal advice. General liability insurance would pay for your legal defense and any damages awarded in a settlement.
Example 3: As an employee brings a plane around to the front of your business to attract new customers, she forgets to look left while preparing to park and runs into a customer’s car. General liability insurance would cover the customer’s vehicle repair costs and any additional damages if the customer decides to sue.
Other Types of Coverage Flight Schools Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Workers’ Compensation Insurance
Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability or death benefits stemming from a work-related accident.
Commercial Property Insurance
You made a major investment to establish your flight school. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property. This includes structural damage to your building(s) and grounds as well as your planes, specialized equipment, and other business supplies.
Commercial Auto Insurance
Any vehicle you use primarily for business requires commercial auto insurance to protect the vehicle, driver, and others on the road in the event of an accident. Be sure to select a policy that covers not only accident-related vehicle repair costs and medical treatment for anyone injured but also sufficient protection for any business materials you carry in your vehicle.
Commercial Umbrella Insurance
While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your flight school:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Flight School Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
It is advisable to purchase business insurance before starting business. Failing to obtain coverage from the outset can potentially expose your business to various unforeseen risks and legal non-compliance.
Additionally, certain types of insurance like workers' compensation and commercial auto insurance are mandatory by law. Furthermore, your enterprise may need business insurance to safeguard against specific risks like property damage and customer personal injury.
Not necessarily. Certain exceptions may be written directly into your flight school insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.