By Jim Gardner

As the saying goes, there is good news and there is bad news. Which would you like to hear first?

First, let’s look at the good news for the FBO Operator. We are in the continued midst of a soft aviation insurance market that began in 2006. Since then, aviation insurance rates have declined to their lowest point in history.  

Now, the potentially bad news, beginning in the winter of 2010, many in the aviation insurance industry are predicting a return to a Hard Market.  

What is a Hard Market? It is generally characterized by fewer underwriters bidding on a particular risk - resulting in fewer options, increased rates and premiums, decreased limits of liability and less ancillary coverage offered. In addition, there are more stringent underwriting requirements on training with less flexibility for the operational managers.