Mechanics insurance?

[astjp2]

I received notice from my local airport manager, I am not allowed to work on any aircraft at my airport unless I provide proof of lialability insurance naming the city as third party lialability. This policy must have $1,000,000 coverage by an appropriately rated broker.

I priced this, and for me to be able to pay this policy, I would have to do 40 annuals at $1000.00 per annual and still have something left for me to pay taxes and other fees....

Has any one else had to deal with this? Can an airport that received federal funds stop me from working?

Is this even constitutional? It sounds like legalized extortion to me....

I was charging $350.00 for the inspection and $35.00 per hour for the maintenance. If they enforce this, I will have to either raise my rates or get out of the buisness....Tim

[magman]

Re: Mechanics insurance?

Unfortunately; it is NOT uncommon .

Not only in the aviation world either.

In many states the fact that an organization allowed a person or group

to perform some task automatically incurs liability for that organization.

I've been on both sides of this.

If someone will be hired to work on my roof I want to SEE the Cert of Insur.

Can you find other operating locations?

[Hank Jarrett]

Re: Mechanics insurance?

Might be worth finding out if you can get a release of indemnification for the airport where you take responsibility for your own actions. Any lawyers in the group who can address this with some authority? I know my mechanic was complaining about this at my airport and we found out it was being driven by the FBO not wanting "free lance" mechanics cutting into "his business". Looked more like a free trade discrimination to me. If you can't compete with your competition, drive them out with insurance requirements. Stupid thing is the FBO doesn't WANT to work on our planes, he wants the helicopters and business jets, but doesn't like seeing any competition at all.
Some of the local guys fought it and won that the airport CAN NOT stop an owner from doing any maintenance and the A&P signing it off (NOT addressing if the owner is allowed to by the FAA). Stupid, but they were afraid of the clause that said local authority can't override FAA regulation or something like that. Anyway, they backed off some.
Really sounds like AOPA legal could help. Local government is usually driven by local business and the elected folks really don't know what they are doing. A national organization writing them and telling them they are close to getting into hot water could be pretty effective.
Hank

[Guest]

Re: Mechanics insurance?

I received notice from my local airport manager, I am not allowed to work on any aircraft at my airport unless I provide proof of lialability insurance naming the city as third party lialability. This policy must have $1,000,000 coverage by an appropriately rated broker.

I priced this, and for me to be able to pay this policy, I would have to do 40 annuals at $1000.00 per annual and still have something left for me to pay taxes and other fees....

Has any one else had to deal with this? Can an airport that received federal funds stop me from working?

Is this even constitutional? It sounds like legalized extortion to me....

I was charging $350.00 for the inspection and $35.00 per hour for the maintenance. If they enforce this, I will have to either raise my rates or get out of the buisness....Tim

When I was in Poughkeepsie,NY the Dutchess County airport asked the same thing of aircraft owners.

I forgot about the letter by accident and never complied for the remaining 5-6 years and nothing was ever said.

I had insurance.

Dave

[M Towsley]

Re: Mechanics insurance?

Dave,

Not sure if it was the same thing you are talking about but most airports require that your insurance carry them on the policy. It doesn't cost anything more, though.

[N96337]

Re: Mechanics insurance?

Adding an "additionally insured" to a policy is not a good thing.... the risk is that it names YOU if someone goes after them and therefore puts your name on the list in a suit against them as well... we just went through this with our Carriage Company... Just something to think about. According to my lawyer, nobody can require you to name them...it's like they're saying that you have to provide their insurance, when you already have insurance yourself.
That being said, I'm sure every state varies, and the local politics are going to come into play. Just one more reason I don't do any work other than at my own airport anymore.
John

[Guest]

Re: Mechanics insurance?

Dave,

Not sure if it was the same thing you are talking about but most airports require that your insurance carry them on the policy. It doesn't cost anything more, though.

That's what it was. Cost wasn't my issue, it just got off my radar and I forgot. But my first point was that they never followed up or noticed that I had not complied and I never did comply for something like 5 years and then I moved out of NY to sunny NC.

I think that government gets too much into our lives, encrouches on our rights and fails to enforce the laws that have real effect.

[Larry Lyons]

Re: Mechanics insurance?

We went through the same thing here along with a whole raft of other stupid requirements. We formed a sub chapter of our local EAA chapter/Freeport Pilots Assoc. and called our selves the Hanger lease committee. After fighting for two years we prevailed, but not with out a lot of effort by a lot of people. If you would like I can get the email of the leaders of our little revolt. No need for you to completely reinvent the wheel. Along with the named third party, they also wanted the ultralighters to have that million dollar indemnity, along with they were not at fault if they failed to uphold their end of the hanger lease and a 15% per year increase in hanger rent and on it went. There was a lot more crazy stuff beyond even this when they started. 1st of all we did not sign the new lease but continued to pay the hanger rent at the old rate. The stomped their feet, yelled, and threatened, but as they began to see hanger occupancy dwindle they fell in line.
Larry
Sect./Treasure
EAA Chapter 475/Freeport pilots Assoc.

[astjp2]

Re: Mechanics insurance?

About 15-20 years ago, the city wanted to take all of the hangers from the owners and lease them back to them, well one of the local owners had a construction company, needless to say, a very large D-12 was off loaded and ready to level all of the hangers. The city backed down, that was 3 managers ago, now its starting all over again. Tim

[crispy critter]

Re: Mechanics insurance?

Do ya think that if enough of us lined up around the white house & capitol building with guns,knives,axe's,clubs,ball bats,& closed fists that they might give our country back????

They built a new airport in Morehead,Ky a few couple years ago where I rented one of thier new T hangers just to have a spar to keep my Starduster in when I needed extra room in the shop.. They required a million plus your aircraft had to have full hull & collision coverage for a minimum of the current market value of your airplane!!! I had liability only.....and I still do. I called AOPA and consulted thier legal staff. One phone call from them to the airport board chairman settled that in a hurry Along with a few other issues. The board chairman would go threw everyones hanger at will,then he would either leave notes or call you to tell you that you have 3 drops of oil in the hanger floor under your airplane or that you can't have any electrical equipment plugged in unattended such as battery tenders,frige,clock,or anything!! At this time the airport still didn't have gas yet so I kept 30 gallons in approved sealed cans and I got a call telling me he had removed my cans and set them outside in the grass 50' from the hangers. I drove straight to the airport,placed them back in the hanger and was closing the door when he pulled back up. He said I couldn't leave them in the hanger becasue it was a fire hazard....I told him that if that was a hazard then there was 12 other accounts that were far more hazardous then my six 5 gallon cans and he was one of the violators....every airplane in those 12 hangers were full or near full of gas and most of them held at least 30 gallons or more and they vented fumes into the hangers through the fuel vents. I then told him the next time I caught him in my hanger without my direct permission or notification before doing so then he would need to make a dentist appointment to repair all the teeth that I was going to knock out for him!!! That's when I called the AOPA and they said the airport could not make us carry full coverage as long as the minimum liabilities were covered. They know have a new board chairman and mostly new board members who are a lot more understanding. Plus they hired a great couple to run the FBO and turned pretty much everything over to them and they are doing a great job with everything.

[Ray36048]

Re: Mechanics insurance?

Same problem at our airport. That is why we do not have a mechanic on the field. He will only do work on our airport for AOG.

The people who "own" airports do not understand that mechanics and flight schools are required for airports to survive. Or maybe they do, they don't want the airport to survive. That is why they put additional requirements on anyone who wants to run a business. Our town really wants the airport to go away.

[Larry Lyons]

Re: Mechanics insurance?

Holy Moly! As the prop turns. We had that same problem with the city administrator wandering through the hangers when he pleased, checking to see what you had in there. One tenant sent the city a registered letter informing them the next time someone entered his hanger with out his permission they would be arrested for trespass. In Illinois the renter of any premises has control of access. No entry with out a search warrant. Another tenant called th FAA and informed them that there were unauthorized people who knew nothing about aircraft gaining access to his hanger and that if anything happened while he was in flight, taxing, or operating the aircraft he would not be responsible; oh and by the way, what did Home Land Security think about this? One phone call from the FAA ended that little excursion in to our losing our rights!
L
PS: This all just got setteled early this year.

[M Towsley]

Re: Mechanics insurance?

Larry,

There is probably a stipulation in the contract that states they can access for certain issues. Otherwise, it would be Criminal Trespass to Property. However, some of those 'airport people' can be inventive for reasons for entering.

At SPI, where I recently moved, they have to give you 24 hours notice unless it is an immediate emergency.

If it became an issue I would file a police report and then take it up with the State's Attorneys Office for followup with charges. However, you would have to have a very understanding or proactive State's Attorney to actually get that done. Ideally, what they would probably do is send a nice letter on their letterhead telling the offender to cease and desist or else. You would have to be within your rights, (the 'airport people' could not come up with a good reason for entering your hangar), before anything would be done. (I have over 26 years of experience regarding these types of issues in Illinois).

[Hank Jarrett]

Re: Mechanics insurance?

Wow, you guys are making me appreciate the folks at SFQ. They HAVE gone into my hangar, but always for a good reason. The last time was to put a new fire extinguisher in. THEY tracked the dates for each hangar and pulled and exchange them when they come due for inspection. You are at a nice airport when the people who work there come past and you look forward to it.
Hank

AND we have alcohol free auto gas. $4.00 a gallon. Only changes when they refill the tank.

[M Towsley]

Re: Mechanics insurance?

That is nice, Hank. Though they are wackin' ya' on the gas price a bit, I think. But hey, the convenience has to be worth something.