Home » Aviation Products Liability Insurance

Aviation Products Liability Insurance

Aviation products liability insurance is for aviation product manufacturers, maintenance companies or Maintenance Repair Overhaul (MRO), FAA Part 145 Repair Stations, airport owners and Fixed Based Operators (FBO) in relation to the manufacture, sale, and distribution of products; repairs and modification to aircraft; and to the performance of services relating to aircraft products.

Coverage Highlights

  • Products liability insurance
  • Completed Operations insurance
  • Hangarkeepers Liability insurance
  • Aviation Commercial General Liability insurance
  • Airport Commercial General Liability insurance

What Our Clients Are Saying...

Specifically, aircraft products coverage includes:

  1. Sale of new and used aircraft
  2. Sale of aircraft parts and accessories
  3. Sale of fuel and oil

Completed operations is defined as aircraft repairs and servicing, including installation of parts and accessories.

Aviation products liability insurance protects the insured for liability incurred as a result of injury to members of the public which may result from defective products or from completed operations. The coverage is designed to pay for occurrences caused by mistakes in the manufacture or preparation of products or the rendering of service work.

Aviation products liability insurance can either be written as a standalone policy specifically for products liability or it can be included in an Aviation Commercial General Liability insurance policy.

What’s covered by products liability insurance?

Products liability coverage contains three limits of liability:

  1. Per person
  2. Per accident
  3. Aggregate policy limit

A major problem in the writing of products liability has been that of catastrophe losses. Think Boeing 737 Max loss in Ethiopia Airlines and Lion Air in Indonesia where the MCAS system malfunctioned. Not only is there manufacturing defects but the entire fleet of Boeing 737 Max aircraft were grounded.

A Commercial General Liability policy will include:

  • Premises Liability
  • Bodily Injury and Property Damage
  • Defense Settlement Costs and Supplementary Payments
  • Products and Completed Operations
  • Personal Injury & Advertising
  • Grounding Liability
  • Spare Parts Liability
  • Third Party Legal Liability

Types of Aviation businesses that require this coverage

The products liability coverage is applicable to those who manufacture or market aircraft products and components to be sold to others. The completed operations section is applicable primarily to firms engage in servicing, installation, and repair work, such as fixed based operations. Because of the catastrophe exposure, most markets sell this coverage only after careful inspection of all the insured’s operations.

Products liability for the aircraft and engine manufacturers as well as the thousands of component parts manufacturers is a specialized line of aviation insurance large volumes of it are written by only a few of the markets, most notably Global Aerospace, USAIG, AIG, and Lloyd’s of London.

Already have products liability insurance?

Chances are, if you’re in the aerospace industry as a Maintenance Shop, Aircraft Manufacturer, Parts Manufacturer, FBO, Fuel Provider, Paint Shop, or Avionics Company – you already have Products liability insurance.

Questions to ask your current aviation insurance broker:

  1. What aviation insurance companies are currently offering Product liability insurance for the aviation industry?
  2. How do the insurance companies rate the risk of a companies Products liability exposure?
  3. Should I provide loss runs to new insurance companies so they can quote?
  4. What limits of liability would be adequate to cover my business operations?
  5. Is it possible to get the underwriters to come and visit our premises and see our operations?
  6. Are there any new insurance companies offering Product Liability insurance?

Find out what we can do for you

Our Partners

Aircraft We Cover

Aero Commander IAI Westwind / 1123 / 1124 / II

Aero Commander IAI Westwind / 1123 / 1124 / II

Airbus

Airbus

Avanti EVO

Avanti EVO

Beechcraft

Beechcraft

Beechcraft Baron / G58

Beechcraft Baron / G58

Beechcraft Baron 58P / TC

Beechcraft Baron 58P / TC

Beechcraft Bonanza / G36

Beechcraft Bonanza / G36

Beechcraft Denali

Beechcraft Denali

Beechcraft King Air 100

Beechcraft King Air 100

Beechcraft King Air 200

Beechcraft King Air 200

Beechcraft King Air 250

Beechcraft King Air 250

Beechcraft King Air 260

Beechcraft King Air 260

Beechcraft King Air 360 / ER

Beechcraft King Air 360 / ER

Beechcraft King Air 90

Beechcraft King Air 90

Beechcraft Premier I

Beechcraft Premier I

Beechcraft Super King Air 300 / 300LW

Beechcraft Super King Air 300 / 300LW

Beechcraft Super King Air 350 / 350C / 350i / 350iER

Beechcraft Super King Air 350 / 350C / 350i / 350iER

Bell

Bell

Bombardier Challenger

Bombardier Challenger

Bombardier Global

Bombardier Global

Cessna

Cessna

Cessna 172

Cessna 182

Cessna 206

Cessna 210

Cessna 414 Chancellor

Cessna 421 Golden Eagle

Cessna Caravan

Cessna Caravan

Cessna Caravan 208

Cessna Citation 525

Cessna Citation Bravo

Cessna Citation CJ1

Cessna Citation CJ2

Cessna Citation CJ3

Cessna Citation CJ4

Cessna Citation Encore

Cessna Citation Excel

Cessna Citation I / 500

Cessna Citation II/SP

Cessna Citation III

Cessna Citation Latitude

Cessna Citation Longitude

Cessna Citation M2

Cessna Citation Mustang

Cessna Citation S/II

Cessna Citation Sovereign

Cessna Citation V / Ultra

Cessna Citation VI / 650

Cessna Citation VII / 650

Cessna Citation X / 750

Cessna Conquest

Cessna Conquest

Cessna Conquest I / 425

Cessna Conquest II / 441

Cessna Grand Caravan 208B EX

Cessna Single Engine Piston

Cessna Single Engine Piston

Cirrus

Cirrus

Cirrus SR20

Cirrus SR20

Cirrus SR22

Cirrus SR22

Cirrus Vision Jet SF50

Cirrus Vision Jet SF50

Daher

Daher

Daher Kodiak 100

Daher Kodiak 100

Daher-Socata TBM-700

Daher-Socata TBM-700

Daher-Socata TBM-850

Daher-Socata TBM-850

Daher-Socata TBM-900

Daher-Socata TBM-900

Daher-Socata TBM-910

Daher-Socata TBM-910

Daher-Socata TBM-930

Daher-Socata TBM-930

Daher-Socata TBM-940

Daher-Socata TBM-940

Daher-Socata TBM-960

Daher-Socata TBM-960

Dassault Falcon

Dassault Falcon

De Havilland Canada

De Havilland Canada

De Havilland Canada DHC-3 Otter

De Havilland Canada DHC-3 Otter

De Havilland DHC-2T Turbo Beaver

De Havilland DHC-2T Turbo Beaver

Diamond

Diamond

Diamond Aircraft DA40 Diamond Star

Diamond Aircraft DA40 Diamond Star

Diamond Aircraft DA42 Twin Star

Diamond Aircraft DA42 Twin Star

Diamond Aircraft DA50 / DA50 RG

Diamond Aircraft DA50 / DA50 RG

Diamond Aircraft DA62 / DA52

Diamond Aircraft DA62 / DA52

Embraer

Embraer

Embraer Legacy 450

Embraer Legacy 450

Embraer Legacy 500

Embraer Legacy 500

Embraer Legacy 600

Embraer Legacy 600

Embraer Legacy 650 / E

Embraer Legacy 650 / E

Embraer Legacy Shuttle

Embraer Legacy Shuttle

Embraer Lineage 1000 / 1000E

Embraer Lineage 1000 / 1000E

Embraer Phenom

Embraer Phenom

Embraer Phenom 100 / 100E / 100EV

Embraer Phenom 100 / 100E / 100EV

Embraer Phenom 300 / 300E

Embraer Phenom 300 / 300E

Embraer Praetor 500

Embraer Praetor 500

Embraer Praetor 600

Embraer Praetor 600

Epic

Epic

Epic E1000

Epic E1000

Epic E1000 GX

Epic E1000 GX

Extra

Extra

Game Composites

Game Composites

Gulfstream

Gulfstream

Hawker

Hawker

Honda Jet

Honda Jet

Icon

Icon

Icon A5

Icon A5

Lancair Evolution

Lancair Evolution