Aviation Products Liability
For any manufacturer, importer or supplier of products used in the aviation industry, specialist Aviation Products Liability insurance is required.
This may relate to aircraft parts themselves, to products supplied for use in aircraft and to components therein.
Aviation Products are generally defined to be aircraft (including missiles or spacecraft and any ground support or control equipment used therewith), or any article furnished by the Insured and installed in aircraft or used in connection with aircraft or for spare parts for aircraft or tooling used for the manufacture thereof, including ground handling tools and equipment and also means training aids, instructions, manuals, blueprints, engineering or other data, and/or any article in respect of which engineering or other advice and/or services and/or labour have been given or supplied by the Insured relating to any aircraft or aircraft article.
Standard Products Liability insurance generally excludes aviation products and so suppliers of innocuous goods which find themselves being used in aircraft or other aircraft products (often without the suppliers’ knowledge) should take care.
The cover protects the insured against third party property damage and/or personal injury claims following failure of the product.
As with all ‘products’ liability insurances, it is the policy in force at the time the circumstance becomes known or a claim is made, whichever is the earlier. Accordingly not only has a products policy to have been in place at the time of design, manufacture or installation and continuously so, but also when the circumstance/claim is known.
Limits of Indemnity must be suitable not only for any contractual obligations but also to cater for the potential damage/injury involved with aircraft disasters. Limits of Indemnity up to £100m are not unknown and are readily available.
Rail Products Liability
Whilst not quite as restrictive, insurers treat products destined for the rail industry in a similar manner to aviation products and consideration should be given in the same way regarding limits of indemnity etc.
Any such products should be declared in order for the appropriate insurer to consider.