Who We Are
Marsh is a leading aviation insurance broking firm representing over 180 airlines around the world. We have extensive experience handling both start-up and established airline operations, providing advice and insurance solutions tailored to meet our clients’ requirements.
What We Do
Aviation insurance is our core service provision to airline clients though our client service teams who have extensive experience in advising clients on more than transactional risk solutions. We have a dedicated client advisory team who are well known to industry lessors and finance houses and offer insurance related advice on contractual issues that airlines might face. This capability is further supplemented by our aviation risk consulting arm (Aviation Risk Advisory Solutions) which is comprised of experienced former airline executives who can draw on their knowledge of both the business and the insurance market.
Key Airline Insurance Coverages to Consider
Hull ‘All Risks’
This policy insures against loss of, or damage to an aircraft, excluding war related perils.
This policy also insures against loss of or damage to an aircraft, but relates to losses caused by war and related perils such as hi-jacking, malicious damage and terrorism.
A hull all risks policy will include a standard market deductible which varies according to aircraft type. For example, a Boeing 737 (300 series upwards) or a member of the Airbus A320 family will carry a deductible of US$750,000 for each loss. Under this form of insurance, this deductible can be reduced down to a minimum of US$50,000.
Total Loss Only (TLO)
Under the hull/hull war policies the aircraft will normally be insured for an amount stipulated in the lease/finance agreement and in the event of a total loss, this sum would be paid to the lessor/financier. By effecting TLO insurance, the aircraft operator would receive a separate amount themselves.
An operator would not only need to protect the aircraft, but also potential liability to passengers and third parties. The limit required will be determined by a number of factors such as size of aircraft, area of operation, requirements of regulatory bodies and contractual obligations.
Excess War and Terrorism Liability Cover
Since the events of 11 September 2001, insurers have restricted the level of primary third party liability cover for war, terrorism and other perils available within the main liability policy to between US$150m and US$250m in the aggregate. Whilst a small number of governments still offer additional cover above this limit, the majority of air carriers have to purchase excess cover from specialist markets.