Last week’s groundings due to the volcanic ash cloud was expensive, and now this week everyone is looking to get paid. Airline passengers are calling on insurance companies to pay their losses, and insurers are pointing them back to the airlines. The airlines were definitely hit the worst by the week-long disruption, the estimated loss by the middle of last week was over $1.7 billion. And the airlines are the least likely to see any insurance indemnification. In order to be paid, material damage has to be present to give rise to a business interruption claim. Some cover for delay and travel abandonment may be available, but it all depends on what coverages were purchased by the policyholder. Read more…
Virtually no airline is insured against business interruptions as a result of the volcanic ash that has grounded aircrafts throughout Europe causing huge financial losses this past week. But there could be some insurance coverage available for other businesses if the volcano eruption somehow adversely effecting your revenue stream. Do you have a plant or supplier in Europe that had to shut down and cease shipping product to you due to the ash cloud? The ash cloud could be considered volcanic action which is a covered peril on many property policies. Read more…
Just back from a visit with our London insurers, we thought we’d provide you with a report on the state of the commercial aviation market and what to expect in 2010…
The calendar year 2009 has certainly not been a winner for aviation insurance underwriters, since they expect losses of approximately $2 billion USD and estimate the premiums generated will only total approximately $1.5 billion. The result has been an increase in renewal rates in the range of 20% to 30% for insured/airlines, or more in some cases. Read more…
Last week’s groundings due to the volcanic ash cloud was expensive, and now this week everyone is looking to get paid. Airline passengers are calling on insurance companies to pay their losses, and insurers are pointing them back to the airlines. The airlines were definitely hit the worst by the week-long disruption, the estimated loss by the middle of last week was over $1.7 billion. And the airlines are the least likely to see any insurance indemnification. In order to be paid, material damage has to be present to give rise to a business interruption claim. Some cover for delay and travel abandonment may be available, but it all depends on what coverages were purchased by the policyholder. Read more…
