Author: John Melton
Aviation is a high-stakes industry where precision matters. Yet even the most experienced businesses can face claims tied not to physical damage or injury but to errors, omissions or professional advice.
That's where Professional Liability insurance, also known as Errors and Omissions (E&O) coverage, plays a vital role. It protects aviation companies when a client claims financial loss due to a mistake in the services you provided — something General Liability policies usually won't cover.
In today's contract-driven aviation world, carrying this coverage is no longer optional — it's an essential part of managing risk.
What does Professional Liability insurance cover?
Professional Liability insurance covers claims of financial harm tied to your professional services. It protects your business from costly legal defense and settlements when a client alleges that an error, oversight or failure in your services caused them a loss. For example:
- Maintenance documentation errors that delay operations
- Missed defects leading to regulatory penalties or downtime
- Software bugs that cause flight disruptions
- Inadequate training contributing to regulatory violations
- Transaction errors in aircraft sales or brokerage
- Consulting or engineering advice that results in a client's business loss
These exposures are increasingly common and typically excluded from General Liability and Aviation Liability policies.
What aviation businesses needs E&O coverage?
Many aviation businesses do — especially small and mid-sized firms. Here are key segments that face E&O exposures:
- Maintenance, repair and operations (MROs) for maintenance record errors or compliance oversights
- Fixed-base operations (FBOs) for fueling mistakes or ground handling miscommunications
- Flight schools and instructors for inadequate training or certification
- Charter operators and management companies for operational errors, schedule or service mistakes
- Aviation consultants and engineers for flawed advice or reporting
- Airport authorities for professional errors in management or permits
- Aviation software firms/flight planners for data errors or software bugs
- Aircraft sales and brokers for nondisclosure or transactional mistakes
- Drone operators for inaccurate data or service delivery issues
Why E&O coverage matters
Without E&O coverage, businesses can face:
- Costly legal defense, even when not at fault.
- Uncovered financial claims not addressed by General Liability or Aviation Liability.
- Contractual compliance gaps. Many clients now require vendors to carry Professional Liability.
- Reputation risk. Disputes handled through insurance can preserve valuable client relationships.
Professional Liability is affordable and flexible — policies can be tailored to your size, scope and risk profile. In an industry where trust and precision drive success, this coverage provides essential peace of mind.
Want to learn more about how Professional Liability Insurance can protect your aviation business? Contact our team — we specialize in helping aviation companies of all sizes manage evolving risk exposures.
