We've all known for a while that a lack of fixed base operator standards affects operations from FBO to FBO, and can increase the cost of operations for air carriers and FBOs alike. What I was not aware of until recently was that the lack of standards affected insurance costs for FBOs and, therefore, many GSE operations.
Sure enough, I was recently speaking with several aviation insurance executives with regard to the International Fixed Base Operators Association (IFBOA), of which – full disclosure – I am president. The subject concerned liability and workers' compensation insurance. IFBOA had arranged for discounted workers' comp insurance for members. After the workers' compensation discussions concluded, the conversation soon turned to what could be done about the high cost of liability insurance for FBOs. Several operators remarked that insurance premiums have once again begun their skyward projection, after remaining relatively flat for a couple of years.
According to these insurance execs, one of the problems FBOs have when it comes to liability insurance is the lack of standards. There are no accepted best practices, no standard operating procedures and no standardized training. Because of this lack of standardization, it is more difficult for insurance companies to project an individual FBO's liability exposure.
Has a lack of standardization affected your operations? Would certainly like to hear your stories.
