646 666 9601 [email protected]

Business insurance is intended to safeguard the financial assets of a business owner and is a vital investment for a helicopter tour company.

Helicopter Tour Companies

This article will discuss the primary insurance coverage for helicopter tour enterprises, general liability insurance, as well as additional policies that are appropriate for this industry.

Helicopter Tour Companies Need General Liability Insurance

Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.

General liability insurance covers the following risks:

Physical harm

Damage to property

Medical expenses

Legal defence and decision

Personal and commercial harm

While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.


Example 1: A client is filling out papers for a future trip when her youngster wanders off and injures himself. The child’s injuries need surgery and a stay in the hospital for many days. If the client chooses to sue your company as a result of the accident, general liability insurance will pay for the child’s medical costs, your legal fees, and any court-awarded damages.

Example 2: When a prospective client inquires about another helicopter tour company in town, one of your staff gives some unfavourable comments from previous customers. The owner of the competitor company finds out and files a lawsuit against you for defamation. General liability insurance will cover your legal defence as well as any monetary damages awarded by the court.

Example 3: Your bank needs you to carry a minimum of $2 million in general liability insurance in order to receive a loan to buy a second helicopter. A general liability coverage would guarantee that you met that criterion.

Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.

General Liability Insurance Cost

In the United States, helicopter tour companies pay between $350 and $700 per year for $1 million in general liability insurance.

The cost of your coverage will be determined by a number of variables. Among them are your:



Employees’ number

Per-occurrence restriction

The overall aggregate limit

You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.

Other Types of Coverage Required by Helicopter Tour Companies

While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all helicopter tour companies should have are as follows:

Insurance for Commercial Property

You made a significant investment in the helicopters, real estate, and other equipment required to launch your tour company. Commercial property insurance would cover the expense of repairing or replacing your business-related property in the case of a fire, theft, or natural catastrophe. This covers structural damage to your property and grounds, as well as helicopters and other commercial items housed there.

Commercial property insurance is often available as part of a company owner’s policy (BOP).

Insurance for Hulls

Hull insurance, like commercial vehicle insurance, protects helicopter owners against loss or damage to their aircraft. Consider policy limitations carefully since most hull insurance plans pay out on the agreed-upon value, making it critical to avoid undervaluing or overvaluing your aircraft.

Coverage Options for Some Helicopter Tour Companies

In addition to the insurance listed above, your helicopter tour company may need other forms of coverage based on particular elements of your activities. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.

Insurance for Workers’ Compensation

Most states will require you to have workers’ compensation insurance for your part-time and full-time employees if you have any. This coverage covers your workers if they are hurt at work or get sick as a result of a workplace accident. It covers not only an employee’s medical expenditures and lost pay if they need time off to recuperate, but also any disability or death benefits resulting from a workplace accident.

Workers’ compensation insurance is typically sold separately by most insurers.

Umbrella Insurance for Businesses

While most claims are covered by your general liability insurance policy, certain incidents or lawsuits may be so severe that they threaten to deplete the limits of your main coverage. Commercial umbrella insurance protects you from having to pay for legal expenses and awarded damages that exceed the limits of your main policy out of pocket.

Additional Security Measures for Your Company

Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.

With this in mind, here are a few steps you can take to better secure your company:

Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)

To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)

Keep your company licences up to date.

Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.

If your company is an LLC, you should check into LLC insurance.