General Liability Policy May Not Cover Aircraft Products Liability
General Liability (GL) Policies are generally silent on aircraft products liability but if the underwriter knows that the insured manufactures products that become part of aircraft, an aircraft products exclusion will be added to the GL policy. Even if the aircraft products exclusion is absent on the GL policy and an insured’s product is identified as contributing to an aircraft loss, a $1 or $5 million GL policy will not cover the loss. Umbrella and excess liability policies sitting on top of the GL policy generally exclude aircraft products. If you are a small or medium supplier (or a supplier of a supplier) to aviation manufacturers, you likely need a separate aircraft products liability policy. In addition, aircraft products policies have the added benefit of grounding coverage which is not covered by a GL policy because there is no bodily injury or property damage.
In 2017, Aircraft Builders Council (ABC) launched the U.S. Portal: Aviation Products and Grounding Liability coverage for up to USD 50 Million. This competitively-priced aircraft products insurance facility is ideally suited for manufacturers and products suppliers who are required by their customer contracts to buy aircraft products liability insurance and who may not otherwise be able to find lower coverage amounts.