Avsurance: Environmental Liability Requirements Rise

 - March 10, 2020, 8:00 AM
According to Avsurance, FBOs and other fuel holders may not be aware of the requirements for environmental liability insurance, and find themselves liable to penalties for lack of coverage from their landlords or federal and/or state regulators.

Environmental liability coverage is becoming more of a mainstream insurance coverage, according to Avfuel in-house aviation insurance subsidiary Avsurance. Those coverages protect operations exposed to unforeseen financial responsibility and even business interruption for spills or other incidents related to the environment, such as premises pollution, contractor's pollution liability, fuel storage, and above and below ground storage equipment.

"It surprises me how few of our new customers have ever been exposed to the option for environmental liability coverage, especially as we find most airports are now beginning to require it," said Avsurance president Ed Underwood, adding that the company has offered this coverage to its clientele for some time. As a result of those requirements, fuel handlers such as FBOs and flight departments with their own fuel tanks might not be aware of those requirements and be responsible for penalties for unmet risk protection.

While some rates have increased throughout the insurance industry, Underwood noted environmental liability coverage has bucked the trend of late. "While it used to be considered too expensive for most FBOs, the cost is now reasonable, especially considering the cost not to have it."