Aircraft Builders Council released a white paper that looks at the potential product liability exposures faced by companies in the aerospace sector. The 4-page paper highlights the importance of product liability insurance in the aviation industry and introduces a new aircraft products liability insurance facility.
“Aviation in itself is not inherently dangerous. But to an even greater degree than the sea, it is terribly unforgiving of any carelessness, incapacity or neglect.” – Captain A. G. Lamplugh
Did you know that the average wrongful death verdict per passenger arising out of an aircraft incident in the U.S. today is US$6 million? If the event involved a passenger airline, the resultant claims could be in the hundreds of millions of dollars. In addition, prime and lower tier contractors no longer want to assume liability of third parties and are increasingly pushing liability on to their lower tiered suppliers, removing the financial protection historically provided. This is leaving smaller companies significantly exposed against a large loss and is a scenario giving risk managers sleepless nights. As such, Products liability insurance is imperative for any entity involved in the aviation industry, whether it be a manufacturing a small widget, designing a component part or servicing an engine.
In an effort to provide a solution to this problem, the Aircraft Builders Council (ABC) has launched a new aircraft products insurance facility for coverage up to US$50 Million. This competitively priced offering is suited for non-critical manufacturers and product suppliers, especially those with limited aviation exposure or the potential to have aviation exposure by nature of their generic product.