Aircraft Charters, Contracting or Hiring

Chartering, Contracting or Hiring of aircraft is excluded under any General Liability Insurance Policies, including the University’s. Therefore, it is necessary the University be certain the aircraft operator has adequate Aircraft Liability Insurance with the University listed as an Additional Insured on their insurance coverage before any contract can be signed or a Purchase Order issued and the flight can occur.
The approval procedure is as follows:

1. Provide FULL DETAILS of the proposed aircraft use to either the Risk Management Office or the Department of Procurement Services, which will then contact Risk Management.
   


2. Risk Management will determine the limits of Aviation Liability Insurance required for the particular situation and use of the aircraft. The University department involved will then forward the requirements to the aircraft operator.
   


3. If the aircraft operator is able to meet the University’s requirements, then a Certificate of Insurance evidencing the aircraft operator’s liability insurance, showing The Pennsylvania State University as an Additional Insured, must be submitted with any Agreement (Contract) to the Risk Management Office. This may be directed to the Department of Procurement Services if a University Purchase Order is to be issued. The address of the Certificate Holder and Additional Insured should appear as follows:

   The Pennsylvania State University
   c/o Risk Management Office
   103 Rider Building II

   227 West Beaver Avenue

   State College, PA  16801



4. Risk Management will verify the Certificate of Insurance is acceptable with the submitting department or, if a Purchase Order is involved, the Department of Procurement Services. If the Certificate of Insurance is not acceptable, either Risk Management or Department of Procurement Services will get back to you concerning its deficiencies.
   


5. Please note that no specific amount of Aircraft Liability Insurance is listed as a requirement. Aircraft use is judged individually and the Aircraft Liability Insurance limits are set as appropriate.
   


6. All written Agreement (Contracts) with the University fall under Policy FN11 Contracts and Leases. The Agreement for the use of any aircraft must be submitted to either the Risk Management Office or if a Purchase Order is being issued, the Department of Procurement Services. See the Risk Management website section on Contracts for further information on the processing of University contracts.
   

Please note that these requirements only pertain to the Chartering, Contracting or Hiring of an aircraft in the name of the University. They do not apply when individuals buy tickets to go on a regularly scheduled flight. Please contact Risk Management, (814) 865-6307, if you have any questions.