Aerospace Manufacturers Insurance
Who We Are
Our experience in this sector is unparalleled with dedicated insurance professionals specialising in the aviation manufacturing sector. Managing risk in the aerospace business is an increasingly complex challenge with ever-increasing litigation and awards being sought around the world.
What We Do
Marsh provides tailor-made aviation insurance solutions for our manufacturing clients. No two organisations are the same and consequently understanding our client’s business is key to obtaining optimum insurance and risk management solutions for our clients.
Key Manufacturing Insurance Coverages to Consider
For all organisations involved in manufacture or supply of products to the aerospace industry, aviation liability insurance is a critical consideration when assessing potential exposures to a business and its shareholders. The cover is designed to protect a business against claims that can arise following an accident causing damage to a third party aircraft (or spacecraft) or injury to persons. It is important to note that there is often a significant time-lag between an aircraft accident and a claim manifesting itself against a manufacturer. ‘Product liability’ claims can take many years to settle.
Consequently, when assessing suitable limits of liability, it is important to consider both the current award levels and potential future awards as the limit of liability purchased now is one that a manufacturer will potentially have to rely on in many years’ time. A key driver in any assessment of insurance requirements is a clear understanding of any contractual obligations that may exist as they form a key component in any risk allocation process following a loss.
An aviation product liability policy protects the manufacturer against third party legal liability arising from damage or injury caused as a result of a failure of their product. As with all other aviation insurances, there has to be an ‘occurrence’ that results in either third party bodily injury or property damage. Coverage can also be extended to include ‘manufacturer’s hull’ exposures, and other aviation coverages depending on the activities and risk profile of the individual manufacturer.
It is also possible to purchase war and allied perils liability insurance coverage as part of the aviation liability policy.
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 including ground handling tools and equipment and also means training aids, instructions, manuals, blueprints, engineering or other data or any article in respect of which engineering or other advice and services and labour have been given or supplied by the insured in connection with an aircraft or space vehicle or satellite’.