The Complete Guide to Hangar and Hangarkeepers Insurance in Canada
If you own, lease, or operate a hangar in Canada, one policy protects your building — and a completely different one protects the aircraft sitting inside it that you don't own. Confusing the two is one of the most common (and costly) mistakes hangar owners and FBOs make. This guide: If you own, lease, or operate a hangar in Canada, one policy protects your building — and a completely different one protects the aircraft sitting inside it that you don't own. Confusing the two is one of the most common (and costly) mistakes hangar owners and FBOs make. This guide breaks down exactly what hangar insurance and hangarkeepers liability insurance cover, how they differ, and how to choose the right combination for your operation.
Key Takeaways
Hangar insurance protects the physical structure of your hangar — the building itself, fixtures, and your own contents inside it.
Hangarkeepers liability insurance protects you financially if a customer's aircraft — one you don't own but are storing, servicing, fueling, or towing — is damaged while in your care.
Most hangar operators need both, not one or the other. A hangar fire or a towing accident can trigger either policy, depending on whose aircraft is affected.
Costs depend on hangar size and construction, location, number and value of aircraft stored, and your claims history.
A specialist aviation broker can bundle both coverages so there's no gap between where one policy ends and the other begins.
What Is Hangar Insurance?
Hangar insurance is a property insurance policy that covers the physical hangar structure itself — the building, roof, doors, fixtures, and often the contents you own inside it, such as tools, equipment, and office furniture.
Think of it the same way you'd think about commercial building insurance for any other property. If a storm damages the roof, a fire breaks out, or vandals break in and steal equipment, hangar insurance is the policy that responds. It does not, however, cover damage to an aircraft belonging to someone else that is parked or being serviced inside your hangar. That's a separate, and often overlooked, coverage gap.
Typical hangar insurance covers:
- The hangar building and any attached structures
- Fixtures, fittings, and permanent installations
- Contents owned by the hangar operator (tools, furniture, equipment)
- Loss of business income if the hangar becomes unusable after a covered event
- Perils such as fire, windstorm, theft, and vandalism
What Is Hangarkeepers Liability Insurance?
Hangarkeepers liability insurance is a specialized form of aviation liability coverage. It protects you if an aircraft that belongs to someone else — a customer's plane you're storing, fueling, maintaining, or towing — is damaged while it's in your care, custody, or control.
This is a critical distinction: hangar insurance protects your building. Hangarkeepers insurance in Canada protects you from liability for damage to other people's aircraft. Without it, a single incident — a tow-tug bumping a customer's aircraft, or a hangar door coming down on a wing — could result in a six- or seven-figure liability claim coming directly out of your business.
Hangarkeepers' liability typically applies to:
- Fixed-base operators (FBOs)
- Flight schools storing student or rental aircraft
- Maintenance, repair, and overhaul (MRO) shops
- Airport and hangar operators who lease space to aircraft owners
- Anyone who moves, tows, or handles aircraft they don't own
Hangar Insurance vs. Hangarkeepers Insurance: What's the Difference?
Q: What is the difference between hangar insurance and hangarkeepers liability in Canada?
A: Hangar insurance covers physical damage to the hangar building and the operator's own property inside it. Hangarkeepers liability insurance covers the operator's legal liability for damage to other people's aircraft while those aircraft are in their care, custody, or control — for example, while being stored, serviced, fueled, or towed. Hangar insurance responds to damage to your building; hangarkeepers insurance responds to damage to a customer's aircraft caused by your operations. Most Canadian hangar and FBO operators require both, since a single incident can trigger either policy depending on which asset is affected.
Who Needs Hangarkeepers Insurance in Canada?
If your operation ever takes physical control of an aircraft you don't own, you likely need hangarkeepers coverage. This commonly applies to:
- Flight schools — storing and moving training aircraft between lessons
- FBOs — fueling, parking, and towing visiting and based aircraft
- Maintenance shops — aircraft in for repair or inspection sit in your hangar for days or weeks
- Airport authorities and hangar landlords — leasing hangar space where tenant aircraft are stored
- Charter and management companies — handling client-owned aircraft on the ground
What Does a Typical Policy Cover?
A well-structured combined hangar and hangarkeepers policy generally includes:
- Physical damage to the hangar structure — fire, wind, hail, theft, vandalism
- Owned contents and equipment inside the hangar
- Third-party aircraft damage while in your care, custody, or control
- Towing and ground-handling incidents
- Legal defence costs if a liability claim is brought against you
- Business interruption if the hangar is unusable after a covered loss
What's Typically Excluded
Every policy differs, but common exclusions to watch for include:
- Aircraft damage caused by the aircraft owner's own negligence (not yours)
- Damage occurring outside the described premises
- Wear and tear, mechanical breakdown, or gradual deterioration
- Intentional acts or gross negligence
- Aircraft in flight (this falls under separate aviation hull coverage)
Always review your policy wording with your broker — exclusions vary significantly between insurers, and this is where gaps most often appear.
Factors That Affect Hangar and Hangarkeepers Insurance Costs
Several variables influence what you'll pay for coverage:
- Hangar size and construction type — steel vs. wood, age, and fire protection systems
- Location — proximity to fire services, weather exposure, and regional risk factors
- Number and value of aircraft typically stored, including third-party aircraft
- Claims history — both yours and the operation's track record
- Scope of operations — a hangar used purely for storage carries less risk than one where aircraft are actively fuelled, towed, and serviced
- Coverage limits and deductibles you select
How to Choose the Right Policy
- Map out your actual exposure — do you only store aircraft, or do you also tow, fuel, and service them? Each activity increases your liability exposure.
- Confirm both coverages are included — don't assume a standard commercial property policy includes hangar liability. It usually doesn't.
- Check your limits against real aircraft values — a hangar full of high-value aircraft needs limits that reflect that, not a generic default.
- Work with an aviation-specialist broker — general commercial brokers often miss aviation-specific exclusions and gaps that a specialist would catch immediately.
- Review annually — as the number, type, or value of aircraft you handle changes, your coverage should change with it.
Frequently Asked Questions
Does my commercial property insurance already include hangarkeepers liability?
No. Standard commercial property insurance covers your building and owned contents only. Hangarkeepers liability is a separate, aviation-specific coverage that must be added or purchased alongside it.
Do I need hangarkeepers insurance if I only store aircraft and never touch them?
Even pure storage carries risk — a hangar door, fire, or structural failure can still damage a stored aircraft you don't own. Most brokers recommend hangarkeepers coverage for any hangar holding third-party aircraft, regardless of activity level.
How much hangarkeepers liability coverage do I need?
Coverage should reflect the combined value of aircraft you typically have in your care at any one time, not just the value of a single aircraft. A specialist broker can help calculate an appropriate limit.
Can hangar and hangarkeepers insurance be bundled into one policy?
Yes. Most Canadian aviation insurers offer combined hangar and hangarkeepers packages, which simplifies administration and closes potential coverage gaps between the two.
Is hangarkeepers insurance mandatory in Canada?
It isn't universally mandated by law, but many airport authorities, lease agreements, and industry contracts require it as a condition of operating a hangar or FBO.
Conclusion
Hangar insurance and hangarkeepers liability insurance solve two different problems: one protects your building, the other protects you from liability for damage to aircraft you don't own. Most hangar operators, FBOs, and maintenance shops in Canada need to work together, with no gap between them.
At QubeRisk, we specialize in aviation insurance for hangar owners, FBOs, and flight operators across Canada. We work with a network of top-rated insurers to build combined hangar and hangarkeepers coverage tailored to how your operation actually runs. Reach out to get a personalized hangar insurance quote today.
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