Aerospace & Aviation Insurance

Aerospace is one of the most high-profile industries in the world in which the landscape and risk environment is constantly evolving. With advances in technology, increased competition and costs, changing global politics and legislation, keeping pace with such a dynamic industry can be challenging.

The extensive risks and exposures associated with this class of business mean when losses occur they can be some of the most complex, high-profile and challenging in the world.

For aerospace and aviation companies, having the right insurance protection and representation in place is therefore essential to your current and future business activities.

As one of the world’s leading aerospace insurance brokers, JLT’s expertise and experience mean we are able to provide you with a first class team of aviation specialists and tailored insurance solutions to mitigate the risks that your business may face.

KEY SECTORS

WHAT WE DO

We provide insurance broking services for aviation and aerospace companies throughout the world. Our aviation team experience covers the entire spectrum of the aerospace industry, covering all types of physical damage, liability and associated risks.

Whether arranging insurance cover for commercial airlines, helicopters, business jets, aerospace manufacturers, airports, aerospace service providers, satellites or even UAVs and drones, we have an in-depth knowledge and understanding of the unique risks associated with this dynamic and highly diverse sector.

We understand that aerospace and aviation businesses have unique risk profiles, and regardless of size, we provide a specialist approach to suit your individual needs.

We are constantly enhancing our capabilities and continue to invest in recruiting specialist staff at all levels, expanding our expertise and client offering in all sectors of the business.

Following our expansion during the past decade, we have rapidly grown to become one of the largest and most highly resourced aerospace and aviation insurance brokers in the world today, with a global team of over 260 specialists.

FAQs

Aerospace insurance is designed to mitigate aviation and aerospace companies against the financial risk associated with all types of physical damage and third party liability as a result of various specified perils. Aerospace insurance consists of a number of different coverages which are wide ranging and reflect the diverse nature of the industry and its associated risks. Ancillary policies are routinely purchased for certain excluded perils, such as war and hijacking, and for deductibles.

The aerospace industry can broadly be divided into four insurance sectors, each with its own distinct risk profiles and market characteristics, these being:

  • Airline - all types of airlines i.e. passenger, cargo, regional, charter
  • General aviation (GA) – non-scheduled flying aircraft used for private, business and industrial purposes
  • Manufacturers and aerospace infrastructure - airframe, engine, component and systems manufacturers, airports, authorities and air-traffic control, aviation service operators and service providers Space - satellite owners/operators, space related service providers and manufacturers.

Cyber risks are no longer emerging. In fact, they are now one of the pre-eminent challenges facing businesses today. Not only are attacks becoming more frequent, but their scope and sophistication are escalating.

Aerospace companies are now critically reliant on technology, that of their own and their outsourced service providers, which provides malicious actors with a much larger vector for attack. In the past three years the aerospace industry has suffered huge financial losses and material disruption as a result of cyber incidents.

Today’s cyber risk environment is multi-dimensional, with the impacts from attacks taking many different forms. Typically an aerospace company can be exposed to a number of cyber risks including, data and privacy breach, theft of intellectual property (IP), cyber extortion, system hacking/failure, failure of security and business interruption (BI).

While cyber risks can be covered by insurance, most standard cyber related polices do not necessarily address the unique risks associated with the aerospace industry.

As such, JLT can deliver a custom made cyber product that specifically caters to the needs of aerospace companies. Our policies are specially designed to fill the commonly identified gaps in typical aerospace liability coverage including; data breach costs, regulatory fines, penalties and investigation costs, non-damage related business interruption and the resulting increased costs to get operations back up and running.

You can ask your insurance broker to negotiate the inclusion of a security default clause within the terms of your insurance programme. This clause will allow you (the insured) to cancel an insurer who is participating in the insurance contract should it become insolvent or its rating falls beneath an acceptable pre-agreed level.

No. While a public holiday may be a challenging time for a major claim to occur, your insurance broker will have established protocols in place. Moreover, your nominated claims team members will be available to assist you in an emergency and notify all necessary parties to start the settlement process.

Yes, there is. We have developed a specific flight cancellation insurance product to cover the net loss that directly results from the complete stoppage of commercial flying.

When your insurance broker acts as agent for you and another company involved in the same or a related loss situation, they will advise you and the other client of conflicting interests. They will also take immediate steps to segregate the claim servicing functions provided to both of you.

Key Stats

250+ Aerospace clients won in last five years260+ leading aviation experts5000+ fixed-wing general aviation aircraft insured worldwide500+ airports, products manufacturers and aerospace service providers

WHY JLT

JLT is one of the world’s leading aerospace and aviation insurance brokers. We have extensive experience and an enviable reputation in this challenging and highly specialist market.

We rank amongst the very best resourced brokers in the sector.

Our industry leading practitioners provide the best combination of price and coverage available and devote unparalleled attention and service levels to all our aviation clients.

With over 260 aerospace insurance specialists located throughout the world, we are well placed to address all of your insurance requirements.

As a JLT client, you benefit from:

  • Our market relationships, scale and leverage
  • Service levels and key performance indicators (KPI) tailored to meet your individual business requirements
  • Proven aerospace insurance claims handling capabilities and quick settlement of payments
  • Cost-effective and comprehensive insurance programmes
  • Regular briefings, technical updates and check-ins throughout the year, keeping clients up to date on status of claims, emerging risks and developments in the insurance market
  • Information on demand and administrative efficiencies provided via our client service portal
  • Access to innovative proprietary tools and applications designed specifically to manage aerospace related risks and industry issues.

Case Studies

Aerospace Infrastructure Case study 

Managing a major loss

Our airline client suffered a major total loss when one of their aircraft crashed mid-flight into the Atlantic Ocean, killing 216 passengers and 12 crew. Following news of the loss, we established a rapid response team involving our most senior and experienced professionals to fly out to the client to manage the process and provide emergency assistance.

We immediately notified the lead underwriter and each of the participating markets, instructing them to prepare for an urgent hull settlement in respect of the aircraft value. Despite the fact that the aircraft had not yet been located, we successfully negotiated with underwriters that no 50/50 or 30 day disappearance clauses would be applicable. Additionally we negotiated with underwriters to establish an urgent monetary fund to help the victims' families.

The result was that we were able to collect and pay the substantial hull claim settlement to the airline within just five working days of the disaster. We received a written letter of commendation from the airline for with the professional way in which we handled this tragic and technically complex loss.

Aerospace Infrastructure 

FIRST RENEWAL SAVING

The airline had been with their incumbent aviation insurance broker for over 10 years when they decided to hold a formal tender review for their business.

In our tender response we proposed an innovative restructure of the group’s traditional policies which would provide a number of coverage enhancements at no additional cost. We also proposed a highly aggressive strategy to deliver a substantial premium saving over a period of two years.

The airline ultimately appointed JLT as their broker and chose to implement our unique strategy. The entire structure of the placement was subsequently transformed for the renewal, with great success.

As a result we were also able to successfully achieve the two year savings target at the first renewal. We were informed by the client that no other broker who participated in the tender had proposed any new concepts.

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