Banks and Financial Organisations Contingent Aviation Insurance

Marsh’s Aviation and Aerospace Practice has a team of experts in the field of aviation insurance for banks and financial institutions.

Who We Are

Marsh’s Aviation and Aerospace Practice has a team of experts in the field of aviation insurance for banks and financial institutions. We represent over 30 financial institutions in this specialist area and have a dedicated client advisory team offering real-time advice on contractual issues and how they might impact on both aviation and non-aviation insurance arrangements.

What We Do

We provide a complete suite of repossessed and contingent aircraft hull, liability and hull war insurance, negotiating bespoke solutions for our clients. The business is cyclical and insurance policies need to be flexible to cater for both immediate and longer term requirements. In an increasingly litigious world, plaintiff lawyers are seeking to involve more and more parties in aircraft accidents and ‘negligent entrustment’ is a real concern for aircraft financiers.

Key Leasing and Financing Insurance Risks to Consider

There are a number of risks associated with the financing and/or leasing of aircraft such as:

  • Catastrophic accidents.
  • Financial stability of the operator.
  • Financial integrity of the operator’s insurance underwriters.
  • Risk of liability against the lessor, especially where awards are greater than the limit of liability purchased by the operator.
  • Loss or inadequacies of technical records.
  • Ability to repossess the aircraft.
  • Confiscation of asset by a foreign government (or indeed by the government of registration).
  • War and associated perils (hi-jack).
  • ‘First dollar’ coverage for assets in the lessor’s care, custody and control.

Insurance programmes are available to protect the assets and balance sheet of an aircraft lessor. Coverage can be arranged in this regard for the lessor whilst an asset is on lease to or operated by others (contingent coverage) or whilst ‘off-lease’ and in the care, custody and control of the financial institution/leasing company (possessed coverage) and can be further tailored to suit our client's individual requirements.