What is Aircraft Maintenance Insurance?
Uploaded 5/18/26 by Chris Travers
Aircraft maintenance insurance is a type of commercial coverage designed to help to protect maintenance facilities or mechanics from most maintenance-related liability exposure. This type of coverage is specifically designed for certain aviation maintenance operator risks and might not be covered under basic general liability insurance.
Aircraft maintenance insurance can apply to:
- FAA-certified repair stations / Part 145
- Aircraft maintenance shops
- Independent contractors or small repair businesses
- Services with aircraft cleaning and detailing
- Businesses that install avionics
- A&P mechanics
- Mobile airplane maintenance services
- FBOs offering maintenance
- Storing aircraft in hangars
- Aircraft maintenance and repair providers
Why Is It Important for an Aviation A&P Mechanic to Buy Insurance?
Aviation general liability policies can include Products and Completed Operations coverage. Getting proper coverage is important to help shield against large claims. Products and completed operations insurance coverage could help if the A&P Mechanic is found liable. Your business can be significantly impacted by one single accident. Insurance for your aviation repair shop is essential to help protect against covered damages if found liable.
What does Aircraft Maintenance Insurance Cover?
Aircraft maintenance insurance policies may include some of the following:
- Hangarkeepers Liability- One of the most important coverages for maintenance services and businesses is Hangarkeepers liability. Hangarkeepers liability can help cover a customer’s aircraft while in your care.
- Products & Completed Operations Liability - This coverage can help safeguard your business in the event of a covered accident after repair work is performed. Products and Completed Operations coverage could help if you are found liable.
- Premises Liability - Premises Liability can help cover incidents on your premises.
How Much Does Aircraft Maintenance Insurance Cost?
Several factors are used to determine your premium and the cost of A&P Mechanic insurance, FAA repair station insurance, or aviation maintenance insurance in general. Some factors are:
- Size of the Business– Most of the time larger functions require more coverage. In many cases the premium charged will be a percentage of the revenue of the business
- Claims History– Previous losses may impact your premium pricing
- Selected Coverage Limits– The type of coverage chosen can affect your overall premium
- Annual Revenue– Business income and servicing volume can influence insurance costs
- The Type of Aircraft Serviced– Different aircraft carry different amounts of risk
- Location of Operations– Geographical location can lead to more exposure which might influence premium costs
For individual A&P Mechanic liability coverage, insurance cost could range from $1,000 to $10,000 or more depending on coverage availability and coverage purchased. Some independent A&P mechanics can see $2,500 to $5,000+ annual cost depending on their profile. Aviation maintenance insurance may also range from $3,500 to $15,000+ annually for small shops, while larger Part 145 repair stations could see $16,000 to $55,000 or more a year in premium depending on the volume of business.
Depending on liability limits and exposure, operations that service helicopters or more expensive aircraft could potentially have higher premium costs. It is key to have adequate coverage based on your specific risk profile, operations, and details. Request a quote here:
How do I Purchase Aircraft Maintenance Insurance?
Depending on liability limits and exposure, operations that service helicopters or more expensive aircraft could potentially have higher premium costs. It is key to have adequate coverage based on your specific risk profile, operations, and details. Request a quote here, or give us a call.
FAQs – Insurance for Aircraft Maintenance
Find some answers to common questions about maintenance insurance coverage.
Many aircraft owners, leasing companies, and operators require aircraft maintenance insurance contractually before allowing maintenance work. Some of the coverage typically required would be products and completed operations coverage in a General Liability policy.
Yes, often mobile A&P Mechanics will need specialized coverage since they operate at multiple facilities and airports.
A standard General Liability insurance policy would typically not cover aircraft maintenance operations. In most cases coverage could be added to a general liability insurance policy to help manage exposure.
All operations are different. A $1,000,000 limit of liability can be purchased for a small operation. In many cases multiple millions are required and available.
The content on this webpage is for general informational purposes only and is not legal, financial, or insurance advice. Insurance coverage, costs, and requirements vary by location, insurer, and individual circumstances. We make no guarantees about the accuracy or completeness of the information. Using this content does not create a client relationship, and we are not responsible for any actions you take based on it.
Always consult a licensed insurance professional, broker, or attorney before making decisions regarding insurance policies. Coverage is subject to terms, conditions, exclusions, and applicable laws, and this site is not responsible for errors, omissions, or reliance on the information provided. In the event of any inconsistency between website content and the policy, the policy language shall control unless the parties agree to an amendment.
