Insurance for Independent FBO's and Aircraft Fleet Managers
Over the past 5 years, investment companies, private and public equity funds, public companies and hedge funds have been acquiring FBOs’ and aircraft fleet operators as quickly as possible. In doing so, they have consolidated many costs associated with business operations, including insurance, leaving many independent FBO and manged aircraft fleet operators at a competitive disadvantage.
Although many FBO and managed aircraft fleet group insurance programs have been tried, the limited number of participants, the large variation of exposures and loss ratios and the need for an organizational sponsor or administrator has largely negated any benefit to the consumer.
Transport Risk Management has taken a different approach to our Independent FBO and Aircraft Fleet Manager placements that does significantly benefit the consumer. It's called Fee Based Brokerage.
Once reserved for only the largest chain or branded operators, fee based brokerage reduces insurance costs by removing a commission based brokerage incentive structure paid by the insurance company and replaces it with a negotiated fixed fee for brokerage and support services paid by the client. The client sees exactly the net premium quoted by the insurer(s) and the fee is generally 30% to 50% below the commission levels normally paid to brokers and agents by insurance companies.
Independent FBO and Aircraft Fleet Manager Fee Base Insurance Benefits: