Aviation Errors and Omissions Insurance: Should You Consider Coverage?

Global Aerospace Editorial Team, May 17, 2023
Insurance Products

For those new to insurance and even those with several years of experience, some insurance concepts resonate more clearly than others. Whilst it’s fairly obvious what property and workers’ compensation insurance cover, the meaning of errors, omissions, negligence, breach of warranty and even implied warranty of merchantability are more opaque.

Aircraft engineers repairing and maintaining jet airplane.

We won’t cover all of these, but one thing is certain: They generally mean that either expectations were not met, or a promise was not kept. Not meeting expectations or keeping promises could result in legal liability.

Let’s Talk About Omissions.

Let us take a brief look at the concept of omission. The dictionary reveals the meaning that something is neglected or left undone. It’s not difficult to imagine how this might happen in our daily professional life. In many instances, omissions go unnoticed. But based on our claims data, such situations sometimes result in serious corporate liabilities.

There is a very real risk of leaving work unfinished or not working as accurately as required in today’s busy world. Any kind of inexperience, unawareness or sheer ignorance could lead to an act of omission.

Human factors must be considered anytime and anywhere. Of course, it’s not just human factors, as computers and artificial intelligence continue to have their irregularities, too. Consider these real-world examples:

  • A client recently completed a pre-buy inspection but missed corrosion near the engines. Licensed, qualified mechanics from a reputable maintenance provider completed the pre-buy. How did this happen?
  • A client miscalculated the weight and balance criteria for an aircraft retrofit involving a cargo door. This led to numerous delays in the aircraft completion and delayed aircraft certification.

An Industry Reliant on Omission- and Error-Free Work

In many industries today, even the slightest error or omission could lead to a disaster. Aviation is one of them. Liability insurance—specifically aviation professional liability—could be the protection you need.

Of course, liability comes in many forms, and sometimes a claimant’s allegation is not even justified. Fortunately, a Global Aerospace policy can provide you with the insurance necessary to defend your business and reputation.

Like it or not, omissions can come in countless shades of grey, and the outcome of a lawsuit ultimately depends on the perspectives of those involved. Consequently, having direct access to an industry specialist such as Global Aerospace can make all the difference.

Aviation Professional Services Liability Insurance: Vital Coverage for Aviation Stakeholders

Aviation Professional Services (APS) liability insurance for engineers, surveyors, auditors, safety experts and consultants can be a vital add-on to other insurance. The next time you talk with your insurance broker, make sure you consider all your operational risks—even the non-obvious (e.g., intangible) ones.

The legal concept of omission is a continuous but still underestimated threat within aviation. Having the right insurance coverage for your business could prevent a large, unexpected expense, help forge an unrivalled competitive advantage and provide peace of mind for any aviation business owner.

Contact our team to learn more about Aviation Professional Services.