Here’s a scenario that is a common concern for growing companies. Your company continues its rapid growth, including the opening of new branches in cities not serviced by the airlines. The advantages and efficiencies of transporting your executives and employees to these locations via private aircraft are apparent, but the potential frequency doesn’t warrant the purchase of an aircraft – yet. A decision is made to charter aircraft on an as-needed basis. Now, you currently have a flight department operating two jets, but one is down for maintenance and several key executives need to charter an aircraft to attend an important sales meeting. In both cases, your company has taken on a large liability exposure. From a risk management perspective, this exposure seems somewhat benign. After all, our employees are simply riding in the back of an aircraft we don’t own.
As we are all acutely aware, you can be sued even if it wasn’t your fault. In the case of an aircraft accident, if you were in the “loop of commerce”, you will be brought into the lawsuit. A charter flight made on your behalf puts you squarely in the picture. Let’s talk about some potential insurance ramifications when chartering an aircraft.
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