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APPENDIX A
Survey Questionnaire
SURVEY OF AIRPORT INSURANCE BUYING PRACTICES
I. INTRODUCTION
The Transportation Research Board (TRB) Airport Cooperative Research Program (ACRP) has commissioned a study of
airport practices regarding the arrangement of insurance coverage for airport operations.
Ron Rakich & Associates, Inc., a risk management consulting firm, has been selected by the TRB as part of its ACRP, to
perform research into airport risk management practices. The objective of this particular synthesis is to obtain information
from airport decision makers regarding current industry practices and the myriad factors that influence insurance purchasing
decisions at airports within each of the FAA's size classifications. More specifically, this synthesis seeks to identify, analyze,
and compile these influential factors and, upon completion, aims to serve as a key resource assisting airport executives, risk
managers, and other professionals tasked with the responsibility of purchasing coverage for their respective facility.
The synthesis will achieve this goal by asking airport decision makers a series of questions in survey format to determine
how each entity arrives at coverage decisions. This survey, which consists of 40 total questions, is broken into 8 categories:
I. INTRODUCTION
II. GENERAL INFORMATION ABOUT YOUR AIRPORT
III. YOUR AIRPORT'S INSURANCE PROCUREMENT PRACTICES
IV. THE RISK MANAGEMENT FUNCTION AT YOUR FACILITY
V. CURRENT INSURANCE COVERAGE
VI. YOUR LIMITS AND DEDUCTIBLES
VII. YOUR FACILITY'S APPETITE FOR RISK RETENTION
VIII. THANK YOU
When completing this survey, please answer all questions in terms of current practice at your airport facility. Please note
that many of the following survey questions may have more than one appropriate response, while others call for one singular
answer. Specifications are listed in the body of each question.
Although all responses to this survey will be collected, analyzed, and published, individual responses will be kept strictly
confidential to preserve the anonymity of respondents. All survey respondents will be given a link to the overall survey results
after it is published.
Thank you in advance for taking the time to provide us with your candid responses. The synthesis will provide invaluable
insight into the exposures faced by other airports and how these exposures shape the coverage needs and coverage selections
of similarly classified commercial aviation facilities.
PLEASE NOTE, at this time ACRP is preparing a similar but separate study focusing on Enterprise Risk Management
(ERM). The ERM survey is expected to be distributed to industry contacts within the coming weeks. As an airport risk man-
ager, your feedback may be sought for this subsequent survey. Although some of the questions may appear to be duplicative
in subject matter, each survey stands alone.
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II. GENERAL INFORMATION ABOUT YOUR AIRPORT
SURVEY OF AIRPORT INSURANCE BUYING PRACTICES
1. Type of entity:
State or local government
Federal
Commission/authority
Private
Other (please specify):
2. Please identify your airport's classification under 14 CFR Part 139.
I (scheduled and unscheduled large carrier aircraft, scheduled small carrier aircraft)
II (unscheduled large carrier aircraft, scheduled small carrier aircraft)
III (scheduled small carrier aircraft)
IV (unscheduled large carrier aircraft)
3. Please identify your airport's classification according to 49 USC 47102 classification standards.
Large Hub
Medium Hub
Small Hub
Non Hub
4. Please indicate your airport's annual operating revenues for the most recent fiscal year. Include tenant, landing
fees, parking, etc.
Less than $100M
$100M$250M
$251M$400M
$401M$600M
Over $600M
III. YOUR AIRPORT'S INSURANCE PROCUREMENT PRACTICES
5. How many property/casualty insurance brokers does your entity use?
0
1
2
3 or more
6. Do you have a written broker services agreement with your property/casualty insurance broker(s)?
Yes
No
Uncertain
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7. How long has your primary insurance broker worked with your entity?
03 Years
35 Years
510 Years
10 Years or more
N/A--Our facility does not use a broker
8. How often do you competitively procure your insurance broker services contract?
Every year
Every 2 years
Every 3 years
Every 4 years
Every 5 years
More than every 5 years
9. Why do you competitively procure your broker services contract? (Please check ALL that apply.)
Contract expiration
I continually assess service provided vs. price paid
Required under our procurement guidelines
Broker performance issues
We do not competitively procure our broker services contract
Other (please specify):
10. Which describes the method most often used by your airport in selecting an insurance broker?
Open competitive RFP
Pre-qualified pool through RFQ process, then distribute RFP
Pre-qualified pool through RFQ process, then make selection
Personal relationship
Other (please specify):
11. To what extent does your entity rely on your insurance broker's recommendations regarding insurance
purchases?
Extensively
Somewhat
Limited
We perform an independent analysis
12. What is the MOST IMPORTANT criterion for insurance purchasing decisions at your entity?
Price
Coverage
Exposure
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Recommendation of insurance advisor
Other (please specify):
13. Who assists with the insurance purchasing decision? (Please check ALL that apply.)
Internal staff
Outside risk management consultant
Insurance broker
Committee
None of the above
Other (please specify):
14. How often do you "shop" your property/casualty lines of insurance?
Every year
Every 2 years
Every 3 years
Every 4 years
More than every 5 years
Do not shop the insurance
Depends upon the preliminary renewal pricing and terms
15. What is the MOST IMPORTANT factor that goes into your decision to purchase a NEW insurance product?
Exposure increase
Cost/benefit
Newly identified exposure
Emerging trends
Statutory/legal/regulatory requirement(s)
Do not buy new insurance products
Other (please specify):
IV. THE RISK MANAGEMENT FUNCTION AT YOUR FACILITY
16. Who in your organization is ULTIMATELY RESPONSIBLE for the risk management role including the insur-
ance purchasing decision?
Dedicated airport risk manager
Municipal risk manager
Legal
Purchasing/procurement
Human resources
Committee
Other (please specify):
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17. Is the risk management function in your organization Full Time OR Part Time?
Full time (Skip to Question #19)
Part time
18. If part time, what is the primary responsibility of the person responsible for risk management?
Finance
Purchasing
Legal
Human resources
Administration
Other (please specify):
19. Does your airport perform specific risk analysis (identification of exposures that may need insurance coverage)
to validate an insurance purchasing decision?
Always
Usually
Sometimes
Depends upon the line of insurance
No, we do not perform risk assessments (Skip to Question#22)
20. Which of the following methods does your facility use to conduct this risk analysis? (Please check ALL that
apply.)
Risk Assessment Questionnaires
Evaluating Contracts, Records, and Documents
Personal Inspections
Benchmarking and Statistical Analysis
Evaluating and Analyzing Loss Histories
Other (please specify):
21. Who performs risk analysis for your airport facility? (Please check ALL that apply.)
Risk manager within your organization
Safety officer(s) within your organization
Independent risk consultant
Insurance broker(s)
Departmental personnel
Other (please specify):
22. Does your organization self-administer claims?
Yes (Please indicate which type below)
No
Type (Worker's Compensation, General Liability, etc.):
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23. How often do you perform a cost/benefit analysis relating to self-administration of claims?
Every year
Every 2 years
Every 3 years
More than every 3 years
When we re-bid the insurance package
Never
24. To what extent has the risk management function become important to your airport in the last 5 years?
More important
Same
Less important
25. Which THREE loss exposures are you MOST concerned about today?
General Liability
Auto Liability
Business Interruption
Construction
Environmental
Professional Liability
War/Terrorism
Cyber Risk
Brand Identity
Intellectual Property
V. YOUR CURRENT COVERAGE
26. Please indicate the lines of coverage your entity purchases. (Please check ALL that apply.)
General Property
Crime
Law Enforcement E & O
Builder's Risk
Fiduciary Liability
Pollution
Business Interruption
Professional Liability
Cyber
Commercial General Liability
Public Officials Errors & Omissions
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Other (Please specify below):
Workers' Compensation
Director & Officers Liability
Commercial Auto Liability
Employment Practices Liability
Other (please specify):
27. Does your entity purchase war and terrorism coverage for any of the following lines of insurance? If so, check
ALL that apply.
General Property
Pollution
Builder's Risk
Other (Please specify below):
Commercial General Liability
Other (please specify):
Do not purchase war and terrorism coverage
28. Does your entity purchase construction insurance coverage? If so, check ALL that apply.
Owner controlled insurance (OCIP)
Builder's Risk
Project Errors &Omissions
OPPI
Other (please specify):
Contractor's Pollution Liability
Other (Please specify below):
Do not purchase construction coverage
VI. CURRENT LIMITS AND DEDUCTIBLES
29. How often do you change the deductibles on your insurance program?
Annual, at review
When market conditions yield premium savings
Deductibles have remained the same for many years (Skip to Question #31)
Do not change (Skip to Question #31)
Other (please specify):
30. If you have INCREASED your deductibles within the past 13 years, what are the reasons for that change?
(Please check ALL that apply.)
Loss exposure supports a higher retention
Cost of insurance requires us to retain higher deductibles
Market forces-no other options
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We HAVE increased deductibles, but NOT within the past 1 - 3 years.
Other (please specify):
31. How often do you change the liability limits on your insurance program?
Annual, at review
When market conditions change
Liability limits have remained the same for many years (Skip to Question #33)
Do not change (Skip to Question #33)
Other (please specify):
32. If you have INCREASED your liability limits within the past 1-3 years, what are the reasons for that change?
(Please check ALL that apply.)
Greater loss exposure
Broker recommendation
Increased liability limits were affordable
We HAVE increased our liability limits, but NOT within the past 13 years
Other (please specify):
33. What factors go into your decision to select the liability limits in your insurance program? (Please check ALL
that apply.)
Cost
Exposure
Broker recommendation
Consultant recommendation
We purchase the same liability limits each year
Other (please specify):
VII. YOUR FACILITY'S APPETITE FOR RISK RETENTION
34. Is your facility self-insured for any primary levels of insurance, i.e., with a large self- insured retention for excess
or catastrophe lines of insurance?
Yes
No (Skip to Question #37)
35. Which lines are self-insured? (Please check ALL that apply.)
Property
Liability
Workers' Compensation
Other (please specify):
36. What factors went into your decision to self-insure? (Please check ALL that apply.)
Affordability of the insurance product
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Availability of the insurance product
Cost/benefit analysis
Strong appetite to retain risk
Other (please specify):
37. How often do you perform a cost/benefit analysis to assess the viability of self- insurance?
Every year
Depends upon the line of insurance
When the market hardens for specific lines of insurance
Never
38. Is your entity "bare" (without any insurance or self-insurance program) for any lines of coverage? If so, please
check ALL lines neither INSURED nor SELF-INSURED by your facility from the list below.
General Property
Crime
Law Enforcement E & O
Builder's Risk
Fiduciary Liability
Pollution
Business Interruption
Professional Liability
Cyber
Commercial General Liability
Public Officials Errors & Omissions
Workers' Compensation
Directors and Officers
Errors & Omissions
Commercial Auto Liability
Employment Practices Liability
Other (Please specify below):
39. What is the deductible for each line of insurance?
Property
Liability
Workers' Compensation
$0$100,000
$100,000$250,001
$250,000$500,000
$500,001$750,001
$750,000$1,000,000
Excess of $1,000,000
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VIII. THANK YOU!
40. Your participation in this survey is greatly appreciated and will aid in the development of a significant resource for profes-
sionals in the airport and risk management industries. Please recall that you may receive a separate but similar survey in the
coming weeks. As a risk management professional with unique perspective on the industry and its practices, ACRP welcomes
and encourages your response to each.
Thank you for providing us with your comments or sharing additional information about your insurance purchasing and
risk management practices in the comment section below.
