You are setting up a new aircraft repair station. The business, which is organized as a corporation, will provide avionics systems, parts, components, and modification, along with avionics inspection and maintenance services. The business has leased a hangar from the airport authority where the work will be performed. The hangar includes areas for office space, parts and tool storage, aircraft and avionics maintenance, and a customer lounge. In addition to yourself as general manager, the company's initial employees will include a secretary/receptionist, a bookkeeper, a stocks and stores clerk, and 5 A&P mechanics (one of whom holds FAA inspection authorization as well as a pilot license and will perform maintenance flight checks on customers' aircraft before approving them for return to service following maintenance). The business will not own or operate any aircraft, except for the maintenance flight check operations on customer aircraft. Describe in detail all insurance you will need to purchase for each aspect of this business.

The answer is given below

Explanation:

All the insurance needed to purchase for each aspect of the business include:

The business, which is organized as a corporation, will provide avionics systems, parts, components, and modification, along with avionics inspection and maintenance services.

1. Product liability insurance – It is also referred to as the products and completed operations coverage. It is needed by every businesses which perform aircraft inspection, its maintenance, modification, or deals in the supply of aircraft parts, lubricants and fuel. With this insurance, the corporation can cover claims from faulty workmanship, errors and defect in design, oversights in inspection, and faults in the quality, storage and the delivery of fuels.

The business has leased a hangar from the airport authority where the work will be performed. The hangar includes areas for office space, parts and tool storage, aircraft and avionics maintenance, and a customer lounge:

2. Hangarkeepers liability insurance - This covers the liability of the business for damage to the aircraft of other people’s when their aircrafts are in the care or control of the corporation. In a situation whereby the airplane of a customer is damaged by the employee, the hangar collapses due to natural disasters, this coverage pays off the airplanes’ damages and losses. Also, “Premises Liability” is required because the hangar include areas for a customer lounge. Premises liability covers customers injuries that takes place in the corporation’s hangar.

In addition to yourself as general manager, the company's initial employees will include a secretary/receptionist, a bookkeeper, a stocks and stores clerk, and 5 A&P mechanics (one of whom holds FAA inspection authorization as well as a pilot license and will perform maintenance flight checks on customers' aircraft before approving them for return to service following maintenance).

3. Compensation insurance coverage for workers - This is mandatory for employers as it compensate the employees for on-the-job injuries that occur.

The business will not own or operate any aircraft, except for the maintenance flight check operations on customer aircraft:

4. Hangarkeeper insurance - Here,.the business requires hangarkeeper’s insurance because the business will neither own nor operate any aircraft, but will do flight check and the maintenance on other people’s airplanes that are being stored or worked on in their facility.