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17 CHAPTER FOUR COVERAGE SELECTION PROPERTY AND LIABILITY INSURANCE Several differences emerged in the types of coverage selected by each size classification. First, medium air- All airport operator respondents purchase property and gen- port operators do not purchase workers' compensation or eral liability insurance, and all but one of 19 purchase cov- employment liability coverage, as do their large and small erage for business interruption. Fourteen of 19 respondents airport operator counterparts. Also of note is that small air- purchase both crime and employment practices liability, and port operators do not report the purchase of insurance for well over half of respondent airport operators purchase build- construction outside of the few respondents who purchase ers' risk, workers' compensation, commercial auto coverage, builders' risk policies. Other disparities among respondents and coverage for public officials' errors and omissions. include that large airport operators do not report the pur- chase of pollution liability at the same rate as smaller air- The breakdown of buying practices looks much the same port operators, and medium airport operators do not report for large airport operators. All stated that they purchase the purchase of auto liability coverage as frequently as their property, business interruption, general liability, and crime large and small counterparts. policies. All but one large airport operator confirmed the purchase of builders' risk insurance, and four of six also buy Despite these differences, a majority of airport operators workers' compensation, auto liability, public officials' errors regardless of size did confirm the purchase of property, gen- and omissions, and employment practices liability. eral liability, and business interruption coverage. The survey did not specifically inquire about purchase of certain types of catastrophic loss coverages such as earth- INSURANCE FOR CONSTRUCTION quake and coastal windstorm. Because relatively few of the airport operators surveyed are in locations where such cov- Thirteen of 17 respondents purchase coverage for construc- erage is a concern, it would be difficult to obtain meaningful tion activities on their airport. Of those, seven procure data concerning such coverage in this survey. builders' risk coverage, and four participate in an owner- controlled insurance program (OCIP). All medium airport operator respondents indicated that they purchase property insurance. Three of six medium All but one of the large airport operator respondents respondents buy coverage for builders' risk, crime, employ- confirmed the purchase of builders' risk coverage. Three ment liability, and pollution. One medium airport operator large airport operators buy contractors' pollution liability. reported the purchase of workers' compensation insurance, Another three have an OCIP. and one reported the purchase of excess workers' compensa- tion coverage. Three of six medium airport operator respondents are undergoing construction. Of these, two participate in an Purchasing habits of smaller airport operators show that OCIP that includes coverage for builders' risk. One addi- these facilities are coverage-heavy and that small airport tional medium airport operator reported that implementa- operators tend to purchase a wide variety of coverage types. tion of an OCIP is under consideration at this time. Again, all small airport operators surveyed carry property insurance. All small airport operator respondents also indi- Three of seven small airport operators indicated the pur- cated the purchase of business interruption, general liability, chase of insurance for construction. Of those that do, some workers' compensation, and employment practices liability. buy builders' risk insurance, whereas others indicated that All but one carry coverage for auto liability. Five of seven insurance is purchased through project contractors. small airport operator respondents purchase crime, fiduciary liability, public officials' errors and omission, and directors' Survey instrument results illustrate that both large and and officers' liability coverage. Three of seven small opera- medium airport classifications are actively involved in con- tor respondents also buy builders' risk, professional liability, struction programs; therefore, a large percentage purchase and pollution coverage. construction coverage to provide for any potential pro-