More than 100 business aircraft, with a nominal overall value of more than $1 billion, are currently covered under the FinServe European Business Aviation Placement (F-EBAP) “privileged” insurance program sold by independent broker FinServe Aviation Insurance (Stand 383), which is celebrating its 25th anniversary. The program is designed for business aircraft operators and owners meeting “certain clear operational quality standards,” FinServe chief executive Guy Broddin told AIN, explaining that, “To be covered, [operators] will need to provide a picture of a proven quality operation.”
Eight of “Europe’s top minimum A-rated” aviation insurance underwriters support the F-EBAP program, which FinServe describes as “more like an operator’s insurance policy,” meaning that it provides much more comprehensive coverage to reflect the complex risk exposure business aircraft operators face due to a wider range of activities.
“An operator is more than just an aircraft operator or manager,” explained Broddin. “Most are also handling service or hangar service providers or maintenance facilities, et cetera. All these activities need to be covered under a comprehensive well balanced, well defined insurance coverage, based upon a legal and risk management analysis. Continuous contact with the client insurers [is necessary, so] that coverage is amended throughout the insurance period, if needed.”
Broddin claimed that the aviation insurance industry continues to see “too many policies that are only aircraft insurance policies, not taking into account the complex legal and risk environment in which modern business aircraft operators have to develop.” FinServe’s F-EBAP plan “eliminates contractual uncertainty” about what is actually covered by operators’ or owners’ policies. “Many different clauses have been added to broaden the coverage and eliminate some uncertainties usually emanating from a standard aircraft policy,” he stated.
Broddin said the F-EBAP program’s success has given FinServe a growing buying power that has enabled the insurance broker to offer usually “quite costly” clauses at “almost no” additional premium. For example, it can include clauses that cover risks such as premises and hangar keeper’s liability, material and equipment used around the aircraft, general aviation liability and spare parts insurance. “Although the insurance coverage is much broader than usually offered in the market, premiums under the program are often lower.”
The F-EBAP product includes a “Safety Integrity Program Clause” that is intended to stimulate business aircraft operators and owners to make “further investments with respect to IS-BAO, in particular,” or related programs such as safety management systems. “This is unique in Europe and perfectly demonstrates the growing intention of several European aviation insurers and underwriters to cooperate directly with operators when it comes to safety and safety related matters,” concluded Broddin.