Insurance Strategies for Aviation Projects
Airport infrastructure projects are among the most complex construction environments in the United States. Projects may include landside work—such as parking, roadways, and terminal updates—or airside work, including runway rehabilitation, taxiways, and terminal expansion. These projects must be delivered while airports remain operational.
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Airside exposures tend to be the highest risk exposure. These exposures introduce aviation-specific risks that go far beyond traditional construction exposures. Unlike landside projects, airside construction directly interacts with aircraft operations, passenger safety, and mission-critical infrastructure. This creates a risk profile that requires specialized insurance, coordinated risk transfer, and centralized program design.
TSIB structures insurance programs specifically for aviation infrastructure projects that help contractors, developers, and airport authorities mitigate risk, maintain operational continuity, and protect capital investments.
What Insurance Does Aviation Projects Require?
Regardless if the construction project is airside, landside or both, it will require a combination of aviation and construction insurance coverages. These can include aviation liability insurance,
Builder’s Risk insurance, Wrap-Up insurance programs (OCIPs/CCIPs), environmental liability coverage, and workers’ compensation. However, if the project does have an airside component, these coverages must be specifically tailored to such airside conditions, where exposure to aircraft operations and operational disruption is significantly higher.
Builder’s Risk Insurance
Builder’s Risk insurance protects physical assets during construction, including materials, structures, and equipment. However, aviation projects require a more advanced approach. Work is often phased around ongoing operations, meaning parts of the project are completed while others are still under construction.
This creates shifting exposure throughout the project lifecycle. Builder’s Risk policies must account for phased occupancy, protection of critical infrastructure, and coordination with airport operations. TSIB structures Builder’s Risk coverage with construction sequencing to ensure continuous protection as the project evolves.
Wrap-Up Insurance Programs (OCIPs/CCIPs):
Centralized Risk Control
Wrap-Up insurance programs, Owner-Controlled (OCIP) and Contractor-Controlled (CCIP), are essential for managing risk in large aviation projects for both airside and landside risks. These programs provide centralized insurance coverage across all contractors and subcontractors involved in the project.
Aviation typically involves multiple stakeholders operating simultaneously in high-risk environments. Without a Wrap-Up structure, projects can face inconsistent coverage, gaps between policies, and disputes during claims. OCIPs and CCIPs eliminate these issues by standardizing coverage, centralizing claims management, and improving coordination across the project.
Wrap-Up programs also enhance safety oversight and provide project owners with greater visibility into total risk exposure. For airside construction, where risks are interconnected, a unified insurance structure is critical.
Environmental Liability
Environmental risks are elevated on aviation projects due to fuel systems, underground utilities, and hazardous materials. Pollution liability insurance addresses risks such as fuel spills, soil contamination, and environmental cleanup costs.
Because environmental incidents can disrupt airport operations and trigger regulatory action, coverage must align with both compliance requirements and operational risk management strategies.
Workers’ Compensation
Workers’ compensation coverage protects employees from injuries sustained during construction activities. Airside environments introduce increased risks due to active aircraft, restricted movement zones, and complex safety protocols.
Coverage must reflect these elevated conditions and align with safety programs implemented by airport authorities.
TSIB’s Approach to Aviation Insurance
TSIB differentiates itself by focusing on how insurance integrates with construction operations. Our approach begins with airside and landside risk assessments, identifying how construction activities interact with aircraft operations and infrastructure systems.
We design and implement Wrap-Up programs that align with project delivery methods and aviation liability requirements. In addition, we manage contractor insurance compliance to ensure all participants meet coverage standards.
TSIB also provides claims advocacy, helping clients navigate complex, multi-party claims involving aviation incidents and operational disruption. Our goal is to reduce friction, resolve claims efficiently, and protect project outcomes.
By aligning insurance with real-world construction conditions, TSIB helps clients successfully deliver complex aviation infrastructure projects.