Research Projects

Airport Insurance Requirements In Reserve

A review of the distinctive types of hazard and liability risk that public entities and airports specifically face, and how airport management should address them. This would include: a) identification of risks unique to airports, and those shared with public entities generally b)evaluation of those risks c) risk control measures that can be employed d) the role of airport staff in claims and litigation management and e) the available alternatives in risk financing. This idea is being submitted by the ACRP 11-01 Legal Project Panel and is modified from a submitted legal topic.

Background (Describe the current situation or problem in the industry, and how your idea would address it.)

Airports have many, diverse insurance coverages and requirements, for themselves and for contractors, tenants and
other users, from major airlines and construction projects to T-hangar owners or tenants to pop-up and kiosk
concessionaires. What legal risks must or should be insured against? How should appropriate types of coverages,
and their limits, be determined, to protect the airport while being air and reasonable with the contractor, tenant or
user? What of O&D coverage for airport governing bodies and executives? Coverage for civil rights claims, insofar as
the airport is owned and operated by a public agency? What of requirements that the airport be a named or additional
insured on a contractor's, tenant's or user's policy? Can an airport require, in a lease or other contract, that the other
party's insurance be primary, where that insurer is not a party to the lease or contract? What documents are needed to
have an airport and its personnel covered under a contractor's, tenant's or user's policy? If there is a claim, whose
insurer is to investigate, adjust and, if necessary, defend? Whom does insurance defense counsel represent? Whose
insurance takes lead in investigating, adjusting a settling a claim, and what is the relationship with other involved
insurers which are not in lead? What are the issues for airport counsel in relation to retained defense counsel? What
is a desirable framework for coordination and communication among counsel, with regard to duties toward their
respective clients, including client confidentiality? How does the airport address any layman or media sentiment that,
if a claim arises out of something which occurred on airport property or is related to the airport, the airport is at least
partly liable

Approach (Describe in general terms the steps you think are needed to achieve the objective.)

Literature review including previous ACRP research, and stakeholder engagement.

Cost Estimate and Backup (Provide a cost estimate and support for how you arrived at the estimate.)

$300,000

Related Research - List related ACRP and other industry research; describe gaps (see link to Research Roadmaps above), and describe how your idea would address these gaps. This is a critical element of a synthesis topic submission.

ACRP Legal Research Digest 30

Annotations
Idea No. 145