Overview and Mission
The Aircraft Builders Council was founded in 1954 at a time when aviation products liability coverage was in its infancy and not readily available on the open markets. Working together, sharing a common goal, a group of aviation products liability coverage companies, brokers and insurers developed a products liability insurance facility for the benefit of manufacturers in the aviation industry.
Since its formation, the Aircraft Builders Council program has provided aviation products liability insurance and continues to be the leader in developing coverage to satisfy the dynamic needs of the industry that it serves.
Below are the current coverages offered by ABC.
ABC's Master Lineslip Offers Coverage up to USD 1 Billion
The risk transfer capacity provided by the ABC insurance facility is by means of a "line slip" renewed each October in the London market. The ABC program's London coordinating broker markets the line slip by gaining quota share underwriting capacity commitments from a number of financially strong Lloyd's syndicates and London and overseas insurers.
The lead underwriters take large risk positions on the slip and perform the underwriting negotiations on behalf of all of the underwriters providing capacity on the slip for each placement. Each insured's London broker performs the direct negotiations with the lead underwriters.
The program is accessed through any accredited Lloyd's Broker, although the majority of business under the program emanates from the offices of the member companies of the Brokers Committee. This is not a pre-requisite as any licensed North American Broker may utilize the services of their existing Lloyd's Broker to access the program.
Click here for a list of Lloyd's Brokers that receive ABC program details.
Click here for application forms to be completed in consultation with your broker prior to approaching the ABC for a quote up to USD 1 billion in coverage.
ABC Offers New 'On-line' Facility for Coverage up to USD 50 Million
ABC is excited to announce the launch of a new facility for the smaller size manufacturers requiring up to USD 50 million in coverage. This competitively-priced, new aircraft products insurance offering is ideally suited for manufacturers and products suppliers. The new program features the experience and security of aerospace insurance leaders, Chubb Global Markets and Global Aerospace and also the benefit of centralized claims management and defense by experienced aviation counsel.
For more details on the new facility please click here. To review a copy of the new policy including coverage definitions, click here. For the new coverage offering of up to USD 50 million, ABC has designed an online quoting process that can be accessed at this link.
Aviation Product Recall
Hiscox has been selected by The Aircraft Builders Council Board of Trustees as the carrier to offer product recall coverage for ABC insureds and other qualifying manufacturers.
ABC and Hiscox have put together the first industry-specific recall risk policy for aircraft component manufacturers. The policy is aimed at Tier 2, 3 and 4 suppliers to the industry with sales of less than USD 1 billion producing components ranging from simple bearings or fasteners to complex avionics. This market-leading product has been designed to fit exactly to aviation component part manufacturers contractual exposure.
What differentiates ABC’s Aviation Recall insurance? Unlike many other product recall insurers, we have worked with the aviation industry to develop bespoke and easy-to-understand policy wordings. We have extensive knowledge of the product recall and warranty world with dedicated underwriters.
The law offices of Fitzpatrick & Hunt are in the role of ABC Defense Counsel, with Mendes & Mount handling asbestos, chemical exposure, and other toxic tort and health hazard claims ("Toxic Claims") for ABC.
- To support and promote the continuity of an innovative, competitive aircraft products liability insurance facility;
- To communicate the existence of such insurance program to aerospace manufacturers and product suppliers;
- To coordinate an annual industry-leading aviation safety and insurance conference that is attended by brokers, underwriters, and existing and potential insureds;
- To promote the use of the program's product safety and liability prevention seminars.