23 Coverage to be maintained on a replacement cost basis (excluding capital cost). 5. Pollution.As regards construction projects and depending on sustainable use, agreements should oblige the lessee/user and/or its contractors to maintain comprehensive pollution insurance that will cover insurance costs, including links related to injury, death or property damage caused by pollution and costs related to environmental assessment, reporting, cleaning, and other actions. Tenants/users who handle hazardous or environmental substances should also be required to provide pollution coverage. 6. Specialty.â Tenants who operate maintenance hangars or aircraft storage, repair and refueling services, may be required to maintain liability insurance for the hangar owner to cover the risk of damage to aircraft or other property that is not owned by the lessee. While many agreements already require standard environmental liability insurance, those that provide maintenance or refueling services should offer separate environmental liability insurance to cover liability costs as well as costs related to pollution incidents related to environmental assessment and clean-up. Depending on the scope of services offered, food business operators may be required to provide all of the above insurance coverages and above. For example, if the FBO offers its own lounge, club or restaurant, it may be necessary to provide a spirits liability or Dram Shop cover. b. Obligations.â In addition to insurance coverages, tenant/user agreements often require the providing of obligations or other forms of guarantee of their obligations, especially when the tenant/user is performing construction work.
Ports should reserve the right to verify and approve any borrowings and, where appropriate, to require additional protection of obligations. 1. Contractual Obligations.âAccount of the obligations arising from the lease agreement, the financial resources of the tenths/users and other circumstances, the agreement may contain a credit, guarantee or contractual loan that supports all the obligations of the tenant/user of the lease agreement, including payments. 2. Negotiating the form of these loans in advance is intended to avoid conflicts over the adequacy and extent of these commitments. In particular, performance obligations should under no circumstances be conditioned, including payment (unless the airport pays for improvements). . . .