Hangarkeepers liability: the coverage gap on your hangar floor
General liability policies usually exclude damage to property in the insured's care, custody or control, which on an airport means the aircraft. Hangarkeepers liability fills that gap. Here is who needs it, how the limits work, and what to check.
Taxi route 7 sections
The exclusion nobody reads
General liability is the policy everyone asks for, and for good reason. It responds when a vendor’s work injures someone or damages property. But nearly every general liability policy contains a clause excluding damage to property in the insured’s care, custody or control.
On an airport, the most valuable property in a vendor’s care is almost always the aircraft. A detailer wiping down a Global 7500, a mobile mechanic with an inspection panel open, a line technician towing a Citation into the hangar: in each case the aircraft is in the vendor’s custody. If it’s damaged, the general liability policy may simply not respond.
Hangarkeepers liability is written for that moment.
Who needs it, and why
| Business | Typical exposure | Why hangarkeepers matters |
|---|---|---|
| FBOs | Towing, parking, fueling, hangar storage | Every transient and based aircraft on the ramp is in their care |
| MROs and avionics shops | Aircraft on jacks, panels open, test flights pending | High-value aircraft in custody for days or weeks |
| Cleaning and detailing | Ladders, stands, chemicals, polishers near paint and windows | Contact with the aircraft is the whole job |
| Mobile maintenance | Work on someone else’s ramp or hangar | Care and custody follows the technician |
| Management companies and flight departments | Owner aircraft stored or handled by staff | Often addressed in the aircraft policy, worth confirming |
How the limits work
Hangarkeepers limits are usually written two ways at once: a limit for any one aircraft and a limit for any one occurrence. A hangar fire or a door coming down on three aircraft is one occurrence with several aircraft involved. A policy with a $5M per-aircraft limit and a $5M per-occurrence limit can be exhausted by a single event on a busy night.
Covered. One aircraft, $4M of damage, inside both limits.
Size the limit to the fleet, not the price of the policy
Airports often set a floor. At Lehigh Valley, the published standards list $1M in hangarkeepers coverage for operators. Some sponsors scale the requirement to the largest aircraft a business handles. An FBO’s lease or a fractional operator’s standards can set it much higher. The right question for a vendor is simple: what is the most expensive aircraft I will have in my care, and what would it cost to repair, ground and replace while it’s down?
In flight and not in flight
Hangarkeepers coverage is typically written for aircraft that are not in flight. Taxiing, towing and engine runs can fall into gray areas depending on the wording. Maintenance providers that perform test flights or ground runs should confirm with their broker how those moments are covered.
What to check on a vendor’s certificate
- Is hangarkeepers listed at all? It usually appears under “other” coverages, not in the main general liability box.
- Per aircraft and per occurrence limits. Both numbers should meet your requirement.
- Deductible. A high deductible on a small vendor can mean a claim that the vendor cannot fund.
- Named insured and dates, the same as every other line. See our guide to reading a certificate of insurance.
- Whether you need to be named. Some FBO agreements ask to be added to the vendor’s policy as additional insured or loss payee. Our guide to additional insured and waiver of subrogation explains the difference.
The cleaning and detailing question
Washing and detailing deserve a specific mention because they combine three risks: physical contact with the aircraft, ladders and stands near the airframe, and chemicals that can damage paint, windows and composite surfaces. Many airports also regulate where washing can happen. Scottsdale requires an approved washing plan and biodegradable products, and Van Nuys limits wet washing to wash areas with a clarifier. A cleaning vendor that carries general liability only is a common gap, and an expensive one.
Where this fits in your vendor program
Hangarkeepers is one line in a vendor’s record, but it’s the line most likely to matter on the worst day of the year. Put it on your requirement list explicitly, with a limit, and track its expiration separately. In ClearedVendor, hangarkeepers is part of the airport templates and your own rules, so a vendor that drops it at renewal shows up the same day instead of after an incident.
Questions people ask
Does general liability cover damage to a customer's aircraft?
Usually not when the aircraft is in the vendor’s care, custody or control. Most general liability policies exclude that property, which is why hangarkeepers liability exists.
Do aircraft detailers need hangarkeepers insurance?
In most cases, yes. Detailers and cleaners work directly on customers’ aircraft, so the aircraft is in their care while they work. Many airports, FBOs and operators require it, often with specific per aircraft limits.
How much hangarkeepers coverage is enough?
Enough to cover the most expensive aircraft the business handles and the realistic worst case in one event. Airports often publish a minimum, and FBO leases and operator standards frequently set higher limits.
This guide is general information, not insurance advice. Coverage terms vary by insurer; review policies with a qualified aviation insurance broker.