industry

Aviation and aerospace risk financing: operator and manufacturer exposures

Operating aircraft and building them create different liabilities. Before any retention discussion, establish which side of the business is in scope and how contracts already allocate the risk.

Operator and manufacturer exposures in aviation and aerospace, and the specialists who work with them.

Common risks and risk-financing considerations in Aviation & Aerospace

  • Operators versus manufacturers — Operators carry hull, passenger and third-party liability tied to flight activity; manufacturers and component suppliers carry product liability that can surface years after delivery. Treat them as separate programs with separate data.
  • High-severity liability — A single event can produce very large losses, so retained layers are usually examined against severity scenarios rather than average claims. Ask specialists how they model a large single loss and what sits above the retention.
  • Contractual allocation — Leases, maintenance agreements and supply contracts often shift liability and insurance obligations between parties. Review those terms before deciding what the business actually retains.
  • Cross-border work and specialist evidence — Aviation activity often spans several jurisdictions. Ask providers for experience with your segment and jurisdictions, and involve aviation counsel. A single-parent captive is one structure to discuss once the retained risk is defined.

Each card shows why that provider is relevant to Aviation & Aerospace, from what the provider has recorded against this industry.

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