New Professional Liability Product Offers Peace of Mind to Aviation Pros
Business in general, and the aerospace business in particular, is extremely fast paced. Despite their best efforts, aviation professionals, like all professionals, can and do make mistakes. These errors cover the spectrum of things from inadequate pre-buy inspections, to improper engine overhauls, to inadvertent disclosure of confidential information.
While these mistakes don’t result in property damage or bodily injury, they can have an adverse impact on a client’s business that produces financial ramifications. Consequently, these “errors and omissions” may create exposure for the service provider that results in monetary loss, including costs associated with their legal defense.
Historically, professional liability policies to cover the mistakes of those in the aviation and aerospace industry have been difficult or costly to obtain. Some aviation pros have looked to traditional errors and omissions insurance providers for coverage. However, those insurers are unfamiliar with the unique exposures in the industry and tend to charge more for policies.
Other people seeking coverage purchase a policy from the international surplus lines market, but have to endure the high costs charged by providers in London and elsewhere. In short, there has not been a product ideally suited to meet the professional liability needs of those in aviation-related fields.
Introducing Aviation Professional Services Liability Insurance
As the need for an affordable errors and omissions-type policy provided by a U.S. insurer that is familiar with aviation risk became apparent—both through observation and many inquiries from people in the industry—Global Aerospace decided to develop a product that addresses that need. The result is our Aviation Professional Services (APS) Liability Insurance.
This claims-made insurance covers wrongful acts that result in financial loss that is measurable in monetary terms but that does not occur as a result of bodily injury or property damage. Wrongful acts are errors or omissions committed by a policyholder that arise out of the rendering of or failure to render aviation professional services. The coverage is designed to help professionals in a number of aviation- and aerospace-related fields, including:
- Safety experts
- Maintenance providers
- Aircraft sales dealers
These are just a few examples. Virtually anyone involved in the aviation and aerospace business can benefit from APS liability insurance.
Delivering Benefits for Your Defense
A substantial benefit of the Global Aerospace APS liability policy is that it contains no limitation on defense costs. Some general professional liability policies outside of the aviation industry include defense costs within the policy limits. With those policies, each dollar spent to defend a claim or suit reduces the amount available to resolve the claim on behalf of the policyholder. A limitation like that could be significant. The Global Aerospace APS liability policy eliminates that uncertainty because defense costs are paid in addition to the limit of liability. This results in even greater value for the aviation professional.
An Important New Insurance Solution
We believe that APS liability insurance is one of the most important business investments aviation professionals can make. And if the tremendous interest we’ve seen from clients, the brokerage community, and the industry in general in the short time since our new coverage was announced is any indication, we’re not alone in that assessment. This new product clearly and effectively addresses an unmet need.
In recent years, western economies have enjoyed incredibly low levels of price inflation overall. Certain costs have bucked the trend, however, as you will know very well if you have tried renting an apartment in London or San Francisco. Another of these “outliers” appears to be the cost of repairing aircraft hull damage. So, how big is the problem and what are its causes?
The phrase “Millions for Defense, Not One Cent for Tribute” is oft cited by clients who find themselves or their company in what appears to be a non-meritorious lawsuit. In these cases, we can become enamored with our defenses and we embark on a scorch the earth litigation. We want to win, we want to tell our story, we do not want to set precedent and we want to make sure the plaintiff and the attorney know we will not give up.