Overview

Master Lineslip

Aviation Products and Grounding Liability

(USD1BN Limit)

Master Lineslip – Aviation Products and Grounding Liability (USD1BN Limit) - Overview

Participants in the program are able to secure coverage limits up to USD 1 billion from one panel of insurers using the expertise of the two leading aviation insurers.


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.  

Segments That Fit the ABC Profile 

Segments that fit the ABC profile include airline, cargo, military, general aviation aircraft component parts manufacturers; engine, missile, launch vehicles, spacecraft component parts manufacturers; repair and servicing of aircraft parts.


The standard ABC Policy contains the following Broad Definition:

"Aircraft Products" means an aircraft or Missile or spacecraft or satellite or spaceship or Launch Vehicle and any ground support or control equipment used therewith, and any article furnished by the Insured or the Insured’s predecessors in business and installed in, or used in connection with, or for spare parts for an aircraft or Missile or spacecraft or satellite or spaceship or Launch Vehicle and any ground support or control equipment used therewith or tooling used for the manufacture thereof, including ground handling tools and equipment.


"Aircraft Products" also means training aids, instruction, manuals, blueprints, engineering or other data, and/or any article in respect of which engineering or other advice and/or services and/or labor have been given or supplied by the Insured or the Insured’s predecessors in business relating to such aircraft or Missile or spacecraft or satellite or spaceship or Launch Vehicle and any ground support or control equipment used therewith.

Type of Aviation Coverages Available

  • Aviation Products and Grounding Legal Liability (including Spacecraft Products, Partial Grounding and Non-Occurrence Grounding Legal Liability)
  • Aviation Premises, Hangarkeepers, Non-Owned Aircraft Legal Liability (including Offences Against the Person Legal Liability)
  • Excess Aircraft Legal Liability including Excess Non-Owned Aircraft Legal Liability 
  • Excess Non-Aviation Liability
  • Aircraft Spares All Risks

Available Policy Features

Broad Form policy incorporating all coverages into one policy format vs multiple policies issued by a domestic market. Policy has a non-cancellation endorsement except for non-payment of premium. Contractual liability including additional insureds, hold harmless agreements, indemnities, waiver of subrogation, and breach of warranty can be automatically covered.

Advantages of the ABC Master Lineslip Program:

  • Stable and continuously available insurance market with capacity of up to USD 1 billion
  • AVN52 cover up to USD 350 million
  • Non Occurrence Grounding up to USD 50 million
  • Broad aviation products and related risks coverage
  • Introductory discount
  • Increased long term continuity credit for consecutive renewal 
  • Centralized claims management and defense by experienced aviation counsel
  • No cross claims among insureds which reduces defense costs
  • Severability of interests
  • Regular review of policy wordings
  • Quality underwriting capacity and skills with Chubb Global Markets and Global Aerospace providing the underwriting leads for the program and who are committed to the stability of the program
  • 100% high quality and continually monitored quota share insurance market security
  • No one insurer has more than a 20% share spreading (and therefore reducing) your risk to insurance company failure
  • Quick turnaround of quotes and endorsements for the entire limit
  • Two lead underwriters commit on behalf of the entire slip
  • Efficiency for risk managers for their renewals
  • Two underwriter meetings versus 7-12 for standard placements of higher limits
  • Centralized claims management and defense by experienced aviation counsel assigned as part of the program
  • Defense counsel coordinated by one adjuster to ensure cost effective defense and litigation of claims
  • Product integrity programs and seminars at insureds’ facilities at no additional cost
  • Contract review and guidance provided by dedicated aviation counsel
  • Insureds and their brokers have secure direct online access to claims data
  • Coverages offered all in one policy as may be required: Aviation products/completed operations and grounding liability, premises liability, hangarkeepers liability, non-owned aircraft liability and excess liability, non-occurrence grounding and products recall.
  • A Board of Trustees who, with U.S. and London brokers, continuously review and monitor the effectiveness of the program
  • Insureds receive complimentary registration to ABC’s annual fall conference. 

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 or Agent 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 policy wordings and forms

 

Below are application forms to be completed in consultation with your broker prior to approaching the ABC for a quote up to USD1BN in coverage. 


Application for Products Liability - ABC0007H (WORD) (PDF)
(This revised application form can be used for both US and non-US insureds.)

Application form for Aircraft Servicers and Repairers Liability - ABC0025H (WORD) (PDF)

Application form for Aircraft Servicers and Repairers and Non-Owned Aircraft Liabilities - ABC0075H (WORD)  (PDF)

Share by: