HYPOTHETICAL EXAMPLE
An operational scenario
A manager arranges crew, hangarage and maintenance for an owner. A loss occurs during a repositioning flight, and the parties disagree about whether the flight fell within the approved use and who should bear the deductible.
Illustrative example only; this is not a Montridge client or reported claim.
The insurance distinction
Being named in a management agreement is different from being insured under a policy. Aircraft liability, hull interests, non-owned exposure and professional services allegations need separate consideration; one additional insured endorsement may not address every obligation.
What to examine
Compare management authority, operational control, insurance procurement, deductibles, subrogation and termination clauses. Track when an aircraft enters or leaves management, and confirm the transition of coverage rather than assuming the management contract controls the insurer.
Evidence to gather
- Management agreement
- Aircraft ownership and operating structure
- Crew employment and contractor arrangements
- Current policies and endorsements
Questions for your review
- Who procures coverage and receives cancellation notices?
- Who is responsible for a ground movement or repositioning flight?
- What remains after the agreement terminates?
References and review status
- FAA Part 135 general certification requirements
Operating certification and applicable air-carrier insurance filing context - 14 CFR Part 205 air-carrier insurance
Applicable direct air carriers; not every aircraft owner
References support the indicated background topic. Review questions are educational analysis; no specific policy specimen has been supplied. Source checks: November 12, 2026.