Hot Air Balloon Insurance: Cost, Companies & Quotes From $7/month

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

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Hot Air Balloon Liability Insurance

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

• Radioactive 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

Personal Accident Insurance for Hot Air Balloon Operators 

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 

Airside Vehicle Liability Insurance for Hot Air Balloons 

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. 

Hot Air Balloon Travel Insurance 

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. 

What Insurance Do You Need for Hot Air Balloon Events?

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. 

General Liability Insurance for Hot Air Balloon Events

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. 

Workers Compensation Insurance for Hot Air Balloon Events 

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.

Non-Owned/Hired Auto Insurance for Hot Air Balloon Events 

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. 

Equipment Insurance for Hot Air Balloon Events 

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. 

Liquor Liability Insurance for Hot Air Balloon Events 

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. 

Event Cancellation Insurance for Hot Air Balloon Events 

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  

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:

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