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Contingent Aviation Insurance

Contingent aviation insurance and a separate section known as possessed insurance are vital sources of additional protection for financiers/lessors and help to minimize the risk of operating in a highly complex and vulnerable environment.

Contingent aviation insurance is designed to protect financiers/lessors in the event that the aircraft operator’s policy fails to respond in the event of a claim. In addition to this there is possessed insurance that provides primary insurance cover for aircraft that are no longer subject to a lease or finance agreement or are in the course of repossession and provides airline type insurance.

Areas covered

  • Contingent risks: arising if the operator’s policy fails to respond or the lessee fails to insure fully the risks detailed in their agreement with you and if there is a lack or insufficiency of required insurance due to error or accidental omission
  • Possessed risks: arising while awaiting commencement of a lease, following expiration or termination of a lease following repossession or during the course of repossession

Contingent risks

  • Hull: Aircraft, engines, spares and equipment for all risks of physical loss or damage while not in your care custody and control including to the extent available those risks identified as war and allied perils
  • Liabilities: all sums that the insured shall become liable to pay as damages arising from bodily injury or property damage caused by an occurrence involving aircraft, engines, spares and equipment including, to the extent available under AVN52E those risks identified as war and allied perils
In addition the following coverages can be purchased in conjunction with contingent hull insurance
  • Technical records covering costs arising from the loss or damage to the records. This is subject to a 10% co-insurance.
  • Repossession expenses, which include cost of engaging flight crew, fuel etc.

Possessed risks

  • Aircraft, engines, spares and equipment for all risks of physical loss or damage while in your care, custody and control, including to the extent available those risks identified as war and allied perils
  • Liabilities: all sums that the insured shall become liable to pay as damages arising from bodily injury or property damage caused by an occurrence involving aircraft, engines, spares and equipment including to the extent available those risks identified as war and allied perils while in your care custody and control and up to a maximum of 10 non-revenue passengers inclusive of crew members. These liabilities include:
    • Premises liability,
    • Products liability to provide insurance following the sale of an aircraft/engine- these coverages include additional payments up to a specified limit in addition to the limits of liability, such as supplementary payments as defined (costs for search and rescue, runway foaming removal or wreck etc.) as well as defense and settlement costs that are also in addition to the limits of liability.

Who we serve

  • Banks
  • Financial institutions
  • Leasing companies

Why Willis Towers Watson?

Since pioneering the contingent aviation class of insurance in 1996, Willis Towers Watson has been providing market-leading insurance broking and consultancy services to institutions across the globe.

The Financial Solutions Aviation team works closely with but operate outside the aerospace division of Willis Towers Watson in order to minimize and manage any potential conflict of interest that could arise between aircraft owners, financiers or lessors and the aircraft operators. This model enables us to evidence that we act in the best interests of our clients (being the owners, lessors or financiers) at all times.

As a market leader in this area of insurance, Willis Towers Watson is regarded as a broker of choice for lessors, financiers, investors, traders and financial institutions, and is able to provide the technical, advisory and claims service necessary in today’s global market.

Willis Towers Watson has market leading experience of over 25 years with aircraft lessors and financial institutions and this experience results in the most competitive pricing coupled with the broadest coverage and leading claims handling.

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