Company Liability for Employee Travel

A growing trend that we’re starting to see more of is when a business owner makes his/her personal aircraft available for business use. In certain cases, the owner will be the pilot, and in others cases, an employee could be the pilot. In any event, the following question pertains.

The employees of my company travel for business: sales trips, meetings, plant visits, and the like. In some cases, we have them fly charter, rent a small airplane, use the company jet, or even fly themselves — whatever makes the most sense for a given trip. As an employer, does my company have any liability if something happens to my employee while traveling?

Although the “level” of liability may vary based on travel method, the employer can certainly have some culpability in an aviation incident involving an employee. Several things can be alleged, including improper vetting of pilots, aircraft, or charter operator. We’ve even seen “workplace or employment hazard” alleged in certain cases. Coverage for this isn’t to be confused with workers’ compensation. Workers’ comp pays for medical bills and lost wages.

What should be considered here is Employer’s Liability coverage and, specific to aviation, Corporate Non-Owned Aircraft Liability coverage. The latter is a policy in the name of the business itself, not a holding company or anything else. It provides coverage as it relates to the usage of aircraft the company doesn’t own (e.g. rentals or charter aircraft). The terms are quite broad and often include both airplanes and helicopters. The upper limit is typically 50 to 55 seats, so basically anything short of an airliner will be included. The primary aircraft policies can typically add the operating company as an additional insured as well, which adds another level of protection. With so many variations and many different scenarios, it’d be best to give your agent a call in order to address any potential exposure.