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hanger hold harmless tenant agreement

Wayne

Well Known Member
I am thinking about renting some space in my hanger and wondering if anybody has a simple and effective "hold harmless agreement" that I could view and possibly copy.

Looking to ensure that the tenant?s aircraft would be self insured and I wouldn?t have to worry about any risk.

Thanks
 
'Google' it

Wayne,
I Googled "Hold harmless" and there were a couple of good examples pop up.
One in particular should fit your need. If you can't find it, send me a pm with and I'll copy it and send it to you.

If you are an AOPA member with the Legal services option, they will write or review one for you as part of your agreement.
 
One gotcha

One issue to be concerned about if you are signing a hold harmeless, or for the other guy to worry about if he is signing one, is that it may void the signee's insurance coverage.

A hold harmless basically says "I agree not to hold you responsible, even if you cause damage my airplane (or otherwise cause me loss)."

That's fine - but if you then ask your insurer to pay for the damage, you have also signed away their right to recover from a negligent third party. Your policy says that, if you do that, then the insurer does not have to pay your claim. Everyone pull your insurance policy out and read (re-read?;)) the section on "Subrogation."

Many insurers can be made to understand that certain hangar agreements are between individuals that are not otherwise in the business of renting hangars. If that's the case, then each tenant needs to submit the hold harmless agreement to their agent (who will in turn submit to the insurer) and try to have the insurer grant a waiver of the rights of subrogation against the party that you are holding harmless. This needs to be done BEFORE you sign.

Some companies won't do it - they fell like if a person is renting a hangar they should take responsibility for any damage they cause - and insure against it with a ground liability policy, if they desire. I'm not sure that the companies that insure most RV's - Global Aerospace and AIG - will agree to a waiver of subrogation for a hangar lessor. I'll try to check today and update this thread.

Wayne - I notice you are in Canada. The principles are the same, but the rules may differ slightly.
 
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Won't work

If you do it yourself, it very likely WON'T WORK. It might, but do you want to take that risk? My advice is to see a lawyer in the jurisdiction where the hangar is located. You'll spend a little money, but if you are worried enough about it to try to do it yourself, get some real legal advice so you can feel as confident as the law allows you to be. You'll be able to manage the risks that can be managed, and understand what can't be dealt with.

I heard of a guy that built a sticks and rags plane out of electrical conduit, because he didn't know any better. Getting some document off the internet is pretty much the equivalent.
 
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