Aviation Product Liability Insurance Solutions for Global Aerospace

Aviation product liability insurance is a crucial aspect of the global aerospace industry, providing protection against costly lawsuits and financial losses due to faulty products.

In the event of a product-related accident, the costs can be staggering, with damages ranging from millions to billions of dollars. This is because aviation product liability insurance solutions cover a wide range of risks, including design defects, manufacturing flaws, and inadequate warnings.

The aerospace industry is a complex and highly regulated sector, with strict safety standards and guidelines that must be followed to avoid liability claims. One of the key benefits of aviation product liability insurance is that it helps companies comply with these regulations and mitigate their risk exposure.

By investing in aviation product liability insurance, companies can protect their assets, reputation, and bottom line, while also ensuring the safety of their customers and the general public.

Product Liability Insurance is a type of insurance that protects against third-party bodily injury and/or property damage caused by aviation products or services supplied to a customer.

Insurance markets generally define an 'aircraft product' as 'completed aircraft or space vehicle or satellite and any article forming part thereof, or supplied for installation in, or for use in connection with, or for spare parts for, an aircraft or space vehicle or satellite'.

Aviation Product Liability Insurance covers third-party injury or property damage caused by your products or services, and is often a legal or contractual requirement from manufacturers, owners, and operators.

If you supply aircraft parts, Aviation Product Liability Insurance covers your liability for goods and services that you have provided after they have left your care, custody, and control.

Product liability insurance is designed to protect the insured against third-party bodily injury and/or property damage caused by an aviation product that the insured has provided to a customer.

For example, if a manufacturer makes a fan blade in an engine which causes an aircraft to crash, they could be sued by a third party for the damage caused.

Bodily Injury or property damage arising out of the possession, use, consumption or handling of any goods or products manufactured, constructed, altered, repaired, serviced, treated, sold, supplied, or distributed by the Insured or his employees after such aviation goods or aviation products have ceased to be in the possession or under the control of the Insured.

Aviation Product Liability Insurance policies can offer various coverages, including:

This type of insurance is designed to protect your business from costly third-party bodily injury and/or property damage claims.

If you manufacture or supply products to the aerospace industry, you'll want to consider aviation liability insurance. This cover protects your business against claims arising from accidents that cause damage to third-party aircraft or injury to people.

Manufacturers of aircraft products and components need products liability coverage. This is because they could be held responsible for any defects or malfunctions in their products.

Firms that engage in servicing, installation, and repair work, such as fixed based operations, need the completed operations section of this coverage. This is because they could be liable for any accidents or damages that occur after their work is completed.

Aircraft and engine manufacturers, as well as component parts manufacturers, require specialized products liability coverage. This is a complex and high-risk area, which is why only a few insurance markets, such as Global Aerospace, USAIG, AIG, and Lloyd's of London, write large volumes of this coverage.

Here are some examples of aviation businesses that require this coverage:

Aviation product liability insurance policies can be customized to fit specific needs, with coverage options including product recall, warranty, and maintenance costs.

Policyholders can expect to pay between $500 to $5,000 per year for this type of insurance, depending on the value of their products and the level of coverage desired.

A well-structured insurance policy should include a clear definition of what is covered, including any exclusions or limitations.

Typically, coverage will extend to damages caused by defects in materials, workmanship, or design, as well as any related expenses such as litigation and settlement costs.

The policy should also specify the deductible amount, which can range from 1% to 5% of the total product value.

In some cases, policyholders may be able to negotiate a lower premium by implementing quality control measures or providing proof of product testing and certification.

It's essential to carefully review the policy terms and conditions before signing to ensure that it meets your needs and provides adequate protection.

Product safety is a top priority in the aviation industry, and product liability insurance helps protect manufacturers against costly third-party claims.

Aviation product liability insurance covers damage or injury caused by a product failure, which can result from an occurrence that leads to third-party bodily injury or property damage.

As an aftermarket operator, you likely handle repairs and maintenance, making product liability insurance a legal or contractual requirement from manufacturers, owners, and operators.

Product liability insurance protects against third-party bodily injury and/or property damage caused by products or services supplied to a customer.

An aircraft product is defined as a completed aircraft or space vehicle, including any article forming part thereof, or supplied for installation in, or for use with, an aircraft or space vehicle.

If you supply aircraft parts, product liability insurance covers your liability for goods and services that you have provided after they have left your care, custody, and control.

The insured has a duty of care to their customers, and product liability insurance helps protect against costly third-party claims.

For example, if a manufacturer makes a faulty fan blade in an engine, they could be sued by a third party for the damage caused.

Product liability insurance covers bodily injury or property damage arising out of the possession, use, consumption, or handling of goods or products manufactured, constructed, altered, repaired, serviced, treated, sold, supplied, or distributed by the insured.

In fact, if yes to any of the above, then you MUST have product liability cover.

AIG Aerospace Solutions offers a wide range of insurance policies tailored to various aviation professionals, including manufacturers, airports, service providers, and small aircraft operators.

Their policies provide specialized underwriting, a 24/7 Aviation Claims Hotline, and the AIG Claims Promise. This ensures that clients receive timely and efficient claims resolution.

AIG Aerospace & Aviation Solutions offers several product features that are worth noting. For airline risks in a leading or following position, up to 15% of a $2.5B limit of liability is available. This can provide significant savings for clients.

Here are some key product features of AIG Aerospace & Aviation Solutions:

AIG Aerospace Solutions offers a wide range of insurance products to cover various aspects of the aerospace industry. Their policies are tailored to meet the specific needs of different types of aviation professionals, including manufacturers, airports, service providers, and small aircraft operators.

They provide specialized underwriting, a 24/7 Aviation Claims Hotline, and their signature AIG Claims Promise. This ensures that clients receive prompt and efficient service in the event of a claim.

AIG Aerospace Solutions offers up to 15% of $2.5 billion in limit of liability available on airline risks in a leading or following position. This provides an added layer of protection for airlines and their assets.

Their policies also cover general aviation hull and liability coverage up to $100 million in agreed hull value and $650 million in liability limits for owners, operators, and aircraft management companies.

AIG Aerospace Solutions offers aviation liability coverage for aviation product manufacturers, airports, and airport service providers. This includes coverage for third-party bodily injury and/or property damage caused by products or services supplied to a customer.

Their policies are designed to protect against catastrophic losses and provide peace of mind for aviation professionals. By choosing AIG Aerospace Solutions, clients can rest assured that they have a reliable partner to help them navigate the complexities of the aerospace industry.

Here are some key features of AIG Aerospace Solutions:

At AIG Aerospace Solutions, we have a truly global reach. Our network spans 215+ countries and jurisdictions, making us one of the largest in the industry.

We deliver aerospace solutions around the globe, supporting master control programs and locally compliant coverages. This means our clients can rely on us no matter where they operate.

Our global network is a game-changer for businesses with international operations. With one of the largest global networks in the industry, spanning approximately 70 countries and jurisdictions, we're well-equipped to handle complex needs.

Whether you're looking to expand your operations or simply need support in a new market, our global capabilities are here to help.