Opinion ID: 2769803
Heading Depth: 2
Heading Rank: 1

Heading: Insurance Coverage and Requirements

Text: PALS is an aircraft maintenance company that services commercial airplanes at McCarran Airport in Clark County, Nevada. PALS obtained a Temporary Operating Permit (permit) with Clark County allowing PALS to operate at McCarran Airport.3 The permit required PALS to maintain a minimum level of insurance for certain specified coverage types, none of which included hangarkeepers liability insurance. Clark County also has a compulsory insurance ordinance relating to McCarran Airport: 1 The Honorable John R. Tunheim, United States District Judge for the District of Minnesota. 2 We have appellate jurisdiction under 28 U.S.C. § 1291. 3 Although both parties cite the permit as if it were in effect during the February 6, 2002, incident, the permit states an effective date of February 1, 2001, and provides, “The term of this Permit shall be for a period not-to-exceed one hundred eighty (180) days from the effective date.” The record shows successive temporary permits were issued to replace prior ones. -2- Each operator not otherwise providing insurance as hereinafter set forth pursuant to an existing agreement with Clark County, Nevada, shall, at its own expense, keep in force insurance of the following types and in not less than the following amounts, . . . insuring itself against all liabilities for accidents arising out of or in connection with the operator’s use and occupancy of and/or operations at the airport . . . : ... (c) Hangarkeepers liability insurance in an amount adequate to cover any non-owned property in the care, custody and control of the operator on the airport, but in any event in an amount not less than five million dollars, combined single limit. Clark County, Nevada, Code of Ordinances (Clark County Code) § 20.10.020. PALS obtained hangarkeepers liability insurance from Westchester with $5 million per occurrence and per aircraft limits. As a condition of coverage, the policy required PALS to ensure that Westchester was notified “as soon as practicable” of any covered claim or suit against PALS. The policy also required PALS to cooperate with Westchester “in the investigation, settlement or defense of” any claim or suit against PALS.