On average, you will pay about $40,000 for a hot air balloon. That makes the latter quite an investment. Unfortunately, according to Bristlebane Hot Air Ballooning, the average pilot will have an accident rate of 33.62 accidents for every 100,000 hours of flying logged. Most of these accidents will be as a result of unpreventable circumstances. Comprehensively, these accidents and crashes will end up causing severe damage to the hot air balloon. On average, repairs and replacement for the air balloon will go as high as $40,000, which has the potential to ground your business, especially if you have to pay for said amount out of pocket.
That's where hot air balloon insurance comes in.This is a specialty insurance for hot air balloon business such as balloon owners, pilots, repair stations, and hot air balloon event organizers. Keeping in mind that hot air balloons pose a unique set of aviation risks as compared to helicopters and planes, having a hot air balloon insurance cover ensures that your business stays afloat even when you encounter unprecedented occurrences, including bad weather.
Hot air balloon insurance offers cover against the cost of potential risks arising from the use of the hot air balloon, including loss or damage to the vessel itself. Some of what's covered include:
Physical loss or damage to the hot air balloon up to the agreed-upon value as stated within the signed policy schedule up to the sum insured
Vandalism or malicious damage to your hot air balloon
Passenger and accompanying baggage legal liability
Airside legal liability that might arise due to the use of any airfield or runway in connection to the use of the hot air balloon
Legal defense costs and expenses if a lawsuit is brought against your hot air balloon insurance
Depending on the insurance provider you go for, some of what might be excluded from your policy include:
Wear, tear, deterioration, and mechanical breakdown of the hot air balloon
Road traffic act liability
Illnesses, diseases or sicknesses not as a result of accidents not covered by the insurance coverage
Hot air balloon liability insurance provides you as the insured party protection against any claims brought against you due to injuries and damages during your hot air balloon trips.
Most providers cover both public liability and passenger liability as part of their hot air balloon liability insurance cover.
The public liability policies cover all the amount of damages that your hot air balloon will be legally liable to pay concerning bodily injury on a third party and loss of or property damage.
Overall, the public liability policy covers any costs arising from an occurrence in connection to the control or use of the hot air balloon. Note that most insurance providers will set the limit to what's stipulated within your schedule.
On the other hand, providers will often offer passenger liability as part of their hot air balloon liability insurance offering. The policy covers the number of damages that a hot air balloon owner is legally liable to pay in respect of bodily injury to the passenger. Additionally, the policy covers loss of or damage to material property of any of the passengers on board. As an industry standard, most providers will pay a maximum of $1,000 for property damage for any one of the passengers on board the hot air balloon.
Some providers might offer accidental pollution and contamination coverage as part of their hot air balloon liability policy. This pays for all the sums the business might be legally liable to pay as damages resulting from sudden, identifiable pollution and contamination incidents.
Similarly, you might get noise coverage as part of the liability coverage. This covers the cost of any bodily injury, loss, or damage due to noise by the balloon.
Suppose there is a claim that you committed an act that was in breach of safety regulations put in place by the governing authorities. In that case, you have your insurance provider include a cover for all safety legislation costs. The latter includes the total amount of damages and claimants' costs, including the cost of legal presentation and any resulting settlements, fines, penalties or awards imposed by the judicial system.
There are some policy extensions that you must consider.
Insurance providers might allow you to include an extension that takes care of all search and rescue costs and expenses. Much as you might have to use your own equipment for the search and rescue, they will cover any actual cost of the entire operation.
Further, you might be allowed to include test flights as part of your coverage. If there were to be any loss, damages or legal liability arising from test flights required by CAA or undertaken by BBAC pilots,
Hot air balloon liability insurance will not be liable for, among others, any loss, damage, or legal liability caused by or arising from:
Balloon use when the balloon exceeds the number of persons or load as set by the CAA
Biological and chemical contamination
Carrying any items or person that would typically not form part of the normal cargo carried by a hot air balloon
Balloon use by any other pilot other than the individual declared within the schedule
War, invasion, acts of foreign enemies, hostilities, rebellion, revolution, or insurrection
Computer viruses or any other electronic attacks, including those by hackers or by accidental user errors
Malicious act or an act of sabotage
Hijacking or any unlawful command of the vessel
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Add personal accident insurance to your hot air balloon insurance plan if you operate a hot air balloon yourself. Personal accident insurance kicks in when you sustain an injury due to an accident or any other occurrences that result from the use of the hot air balloon for commercial or recreational purposes.
Personal accident insurance for hot air balloon operators works in three ways, specifically:
Provide compensation if you die due to a hot air balloon-related incident
Cover medical expenses, therapies, and financial losses if you sustain an injury due to a hot air balloon-related incident
Provide compensation if you sustain temporary or permanent impairment due to a hot air balloon-related incident. Common impairments covered are loss of limb and loss of sight. Loss of hearing is covered or not depending on which insurance company you decide to work with
Understand that personal accident insurance only covers one policyholder in most cases. If a hot air balloon has multiple operators, one must insure them with individual personal accident insurance policies. Looking for and purchasing personal accident insurance that allows the naming of additional insureds is also an option
Do you need to launch the hot air balloon in an airport or runway? If your hot air balloon causes an accident in the airport or runway’s premises and third parties sustain injuries or property damage, know that public liability insurance can’t help. And to solve this gap, add airside vehicle liability insurance to your hot air balloon insurance plan.
Airside vehicle insurance will compensate affected third parties (including the airport or runway’s management) if your hot air balloon causes injuries or property damage. Coverage for legal expenses such as administrative costs and attorney fees is also included.
Additionally, airside vehicle liability insurance doesn’t only apply to personal injuries or property damage caused by your hot air balloon but also to the vehicle you’re using to haul it out. In other words, say if you’re using a car in the runway or airport to haul the hot air balloon out and you crash on something, airside vehicle liability insurance will help cover the resulting expenses.
Airside vehicle liability insurance is an essential coverage if you’re planning to launch the hot air balloon on the airport or runway. Access won’t be granted if you don’t have this. So how much coverage do you need? Airport and runway managements will require you to get airside liability insurance having $1 million-$5 million coverage.
Add travel insurance if you’re an enthusiast who loves to take your hot air balloon to events such as the Albuquerque International Hot Air Balloon Fiesta, Teton Valley Balloon Rally, Great Dono Balloon Race, and more.
A lot of investment is involved in joining a hot air balloon event. You don’t only spend for registration but also for lodging, travel, accommodation, and food. These costs are not refundable if ever the hot air balloon event is canceled due to weather, and other covered perils. In connection, hot air balloon travel insurance has cancellation coverage. This functions to recover all non-refundable costs. In other words, cancellation coverage sees to it that your investments aren't wasted when a hot air balloon event is canceled.
Hot air balloon insurance also provides coverage for medical care. Coverage for medical care applies if you sustain an injury or illness while on the way to a hot air balloon event.
Last but not least, your travel insurance will also cover missed flights. Obviously, this will refund or reimburse you if you miss your ride and need to board another flight for the day or reschedule your departure to a more convenient time.
The insurance policies above are solely useful for hot air balloon owners, operators, and owner-operators. What if you’re organizing a hot air balloon event? What types of policies do you need then? Useful policies you need to consider getting are general liability insurance, non-owned/hired auto insurance, equipment insurance, liquor liability insurance, event cancellation insurance, and workers compensation insurance.
A hot air balloon event poses a lot of perils, especially to the attendees. Stampedes, explosions, strong winds, and debris hitting people are some examples. Get general liability insurance and don’t shoulder the burden when people, who sustained injuries or property damage due to an accident in your hot air balloon event, file a claim.
So how does general liability insurance for hot air balloon events work? This will cover or reimburse the medical expenses of injured third parties. General liability insurance will also refund the value of damaged properties.
General liability insurance for hot air balloon events has additional inclusions such as advertising injury coverage and products and completed operations coverage.
Products and completed operations will kick in if someone files a personal injury claim or property claim against a service or product received during your hot air balloon event. As for advertising injury coverage, this will cover attorney fees, administrative costs, and other legal expenses if your hot air balloon event is sued for slander, defamation, or copyright infringement.
You will need to hire some seasonal and part-time employees for your hot air balloon event. And even if it only lasts for a few days or weeks, workers accomplishing specific tasks for the hot air balloon event need to be covered with workers' compensation insurance.
Workers' compensation insurance kicks in when a seasonal or part-time employee of your hot air balloon event sustains injuries due to a slip and fall accident, explosion, impact, or any other accident. Particularly, it will cover the following on the seasonal or part-time employee’s behalf:
Medical expenses-Workers compensation insurance will cover ambulance fees, surgeries, therapies, and other medical expenses
Hospitalization-If the seasonal or part-time employee of your hot air balloon event needs to be admitted to the hospital after sustaining a work-related injury, then workers' compensation insurance will cover the bills
Medication-Workers compensation insurance provides the money to be used for buying the prescription medicines
Rehabilitation-Rehabilitation costs will be covered by workers' compensation insurance if the seasonal or part-time employee of your hot air balloon event suffers from a temporary or permanent impairment due to a work-related injury or disease
Lost income compensation-Workers compensation insurance covers lost income if the seasonal or part-time employee of your hot air balloon event can’t work due to a work-related injury or disease. Compensation for lost income is a weekly allowance income to two-thirds or 67% of the average wage
Death benefits-Workers compensation insurance provides death benefits if the seasonal or part-time employee dies due to an accident in your hot air balloon event. Particularly, the insurance will pay for funeral expenses and provide an allowance to dependents
We recommend looking for an insurance company that sells a pay as you go workers' compensation insurance. Applying for pay-as-you-go workers comp is faster than applying for the standard worker's compensation insurance. Also, rates are cheaper and more accurate.
You’ll hire vehicles to haul equipment and accomplish other related tasks for the hot air balloon event. Protect yourself against expenses if hired vehicles get into an accident by buying non-owned/hired auto insurance.
Non-owned/hired auto insurance covers the medical expenses or refunds the losses of third parties who got injured in an accident caused by a vehicle you hired for your hot air balloon event. It also pays for legal expenses.
Another thing, non-owned/hired auto coverage also pays for expenses if an employee uses his or her own vehicle and gets into an accident while doing an errand for your hot air balloon event.
You’ll hire equipment for your hot air balloon event-lighting, speakers, seats, staging, and many more. And so, ensure that you don’t incur losses when something happens to rented equipment; buy equipment insurance for hot air balloon events.
Equipment insurance will refund the losses of the owner if the equipment you rented sustains damage or becomes lost due to fire, theft, vandalism, weather, and other covered perils. Note that coverage doesn’t apply if such rented equipment becomes lost or damaged while being hauled.
If you allow the selling of liquor within the premises of the venue of your hot air balloon event, then consider getting liquor liability insurance. Liquor liability insurance will cover expenses if a third party sustains injuries or property damage out of being drunk and sues you for overserving him or her with liquor.
Strong winds, delayed delivery of equipment, employee errors, and heavy rains are some of the reasons why your hot air balloon event can be canceled. And so, it’s smart to get event cancellation insurance to shield yourself against the worst. In a nutshell, what this does is cover all non-refundable expenditures if your hot air balloon event becomes canceled. Particularly, coverage applies to what you spend for food catering, equipment rental, and hired professionals.
Note that event cancellation insurance can be modified with endorsements so that it reimburses lost revenues and extra expenses for reducing resulting losses. Note that while event cancellation insurance doesn’t cover typhoons, national mourning, and outbreaks; its terms can be upgraded to provide coverage for these.
Hot air balloon insurance cost $97 per month or $1,164 annually for a $1 million general liability coverage. The hot air balloon insurance policies you buy are usually sold in $1 million in increments. It would be best if you purchased a contract with limits of above $2 million. You can add a liability policy with a $2 million limit.
Suppose you decide to add on additional policies. On average, you will pay about $40 per month for each additional $1 million of coverage you add on.
To select the most cost-effective coverage for your hot air balloon business, consider all the potential liabilities that you are likely to face. This way, it becomes easier to decide if the extra coverage is, in fact, worth the increased cost. Another suggestion is to compare quotes and see how the offers of companies fare from each other. Compare quotes by clicking the "Get Quotes" button on this page.
By the way, here’s a table showing the rates of the hot air balloon insurance companies:
|Cost per Month (Thimble is an exception)||Cost per Year||Best for|
|CoverWallet||$67||$804||Hot air balloon insurance online quotes comparison|
|Tivly||$70||$840||Hot air balloon business insurance quote comparison through a phone call|
|NEXT||$73.84||$886.08||Best overall; Fastest hot air balloon liability insurance|
|RPS||$92||$1,012||Smaller hot air balloon operations|
|Thimble||$115 (cost for one-day hot air balloon event insurance)||Not applicable||Insurance for hot air balloon events|
To reduce the premiums you pay for your hot air balloon policy, consider proactively managing your risks. Consider creating a comprehensive risk management plan for your hot air balloon business, such as:
Developing a thorough training program for your employees, including pilots
Creating a procedural checklist for all hot air balloon trips
Limiting who can commander the hot air balloons
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Here's a breakdown of the best hot air balloon insurance companies in the market today. Read the reviews to know their pros, cons, and pricing for a $1 million hot air balloon liability insurance.
Covers businesses providing hot air balloon recreational ride and sightseeing services
Add landlords or clients as additional insureds
Online certificate of insurance
Doesn’t cover hot air balloon events or hot air balloon owner, operators, and owner-operators
CoverWallet hot air balloon insurance is an insurance plan for hot air balloon recreational ride and sightseeing businesses. It doesn’t cover hot air balloon events or individual hot air balloon owners, operators, and owner operators. Business insurance policies available are general liability insurance, workers compensation insurance, and commercial auto insurance. You can also go for a BOP to get comprehensive coverage at cheap rates.
Note that CoverWallet has an insurance quotes comparison platform you can use to find other companies selling hot air balloon insurance.
Best for: Hot air balloon insurance online quotes comparison
Average cost: $67 per month
Our rating: 10/10
Provides comprehensive business insurance for hot air balloon businesses
Responsive customer service
Fast online quotes
A lot of back and forth with agents for you to get covered
Tivly (formerly CommercialInsurance.NET) provides hot air balloon business insurance. Policy options are workers compensation insurance, general liability insurance, commercial property insurance, and a BOP. This company allows you to get insured online or with the help of an agent. Call Tivly now to compare quotes over the phone.
Best for: Hot air balloon businesses looking for a carrier that’s very responsive
Average cost: $70 per month
Our rating: 9/10
Hot air balloon businesses can get custom, supplemental coverage
Xinsurance offers fixed-object collision coverage covering the business from this kind of accidents that account for 50% of severe injuries and fatalities
Event cancellation coverage is available
Poor customer service
Xinsurance doesn't offer non-owned balloon liability coverage
Xinsurance is a dba of Evolution Insurance Brokers conducting their business from Salt Lake City in Utah. The broker has over 40 years of experience offering insurance products, including professional and personality coverage, property and casualty coverage and specialty coverage in all 50 states. Xinsurance provides hot air balloon clients specialty insurance coverage that promises to cover gaps that existed within the traditional insurance coverage. This specialty cover for hot air balloon businesses includes commercial general liability coverage, hull coverage, property coverage, individual liability coverage and business auto coverage. You will have to get in touch with the official website to get a quote for the hot air balloon insurance policy. However, an online search yields reviews that indicate that, on average, you will pay $75 per month and $900 annually.
Best for: Comprehensive coverage
Average cost: $75 per month
Our rating: 9/10
No limit on the number of insureds you can add to your policy
You can request for a certificate of insurance online
Rapid response to claims
RPS is a leading consulting and coverage provider within the hot air balloon industry
RPS customer service can only be accessed via the telephone
The hot air balloon team is relatively small
RPS has over 25 years of extensive experience within the balloon industry. The insurer provides covers for special events and single-owner operator operations with the goal of ensuring comprehensive coverage.
The hot air balloon coverage options available to consumers include an airport operations area balloon accessory coverage with an accessories limit of $2,500. Businesses are also offered a balloon premises liability and medical expense coverage that has an extended limit of up to $25,000. Additionally, hot air balloon businesses are offered passenger and crew liability coverage with an extended limit of up to $250,000.
You get to work with an outstanding team that's got an extensive understanding of the hot air balloon industry. RPS has built long-standing relationships with the top carriers, which have yielded an unparalleled understanding of the risks within the hot air balloon niche. RPS doesn't offer any information on the hot air balloon insurance coverage cost. You are specifically instructed to get in touch for a custom quote.
Best for: Smaller hot air balloon operations
Average cost: $92 per month
Our rating: 9/10
Issues a proof of insurance you can easily show to anyone
Fastest GL online
Great customer service and reputation
Outstanding value for money
Bundle two or more policies and get a 10% discount
Doesn’t sell a hot air balloon business insurance plan but can cover you through its entertainment business insurance
NEXT doesn’t sell hot air balloon insurance. However, it has an entertainment business insurance plan where your hot air balloon business can get covered. Inclusions are professional liability insurance, general liability insurance, workers compensation insurance, and commercial auto insurance.
Best for: Best overall; Fastest hot air balloon liability insurance
Average cost: $73.84 per month
Our rating: 8/10
Provides comprehensive insurance for hot air balloon events
Get covered for one day to five days
ACORD 25 certificate of insurance
Doesn’t cover hot air balloon businesses
Thimble doesn’t cover hot air balloon businesses but events. That said, approach this company if you’re a hot air balloon event organizer. You can get covered for one day up to five days. Inclusions in this company’s event insurance are cancellation coverage, liability insurance, and liquor liability insurance.
Best for: Insurance for hot air balloon events
Average cost: $115 for a one day hot air balloon event insurance coverage
Our rating: 7/10
Lonnie Bell Insuranker
Policy Type: Business Insurance
Company name: Employers Insurance
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!