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Aerospace insurance is a specialist form of policy specifically built for the aerospace industry and doesn't concern the general public. It is a broader form of aviation insurance. This product type also covers airplanes and helicopters in the event of damage and liability. Aerospace insurance is a niche form of insurance that also covers all other aerospace related risks involving spacecraft, satellites, space launch vehicles and any other equipment associated with aeronautics and space launch.
Who is a potential candidate?
Aerospace cover is an option for all parties that have significant holdings in the aeronautics industry. This can include owners and managers of aircraft, airports, airport services, industrial and cargo aircraft, satellite and space operations and engineers and architects of aerospace products. This industry is broad in scope and aerospace policy providers have created packages that serve most professionals.
What typically does it cover?
It typically covers accidental damage, or technical faults to equipment and land-based property. The same property and equipment is also covered in the event of vandalism, theft and extreme weather.
Aerospace policies also cover liability, legal, medical and compensation costs to any persons injured in the event of an aerospace injury.
What typically does it not cover?
Untested missions, for instance, uncharted or exploratory, space travel are not covered. The main reason for this is that the risks are perceived to be too great so the insurance is not deemed to be cost-effective. It also doesn't cover intellectual property infringements between aerospace companies. As an example, a new piece of equipment will only be insurable by the patent owner. Other companies piloting new equipment of a similar nature cannot make a claim if they find their piece of equipment to be faulty as they would not have followed the patented, 'safe' model.
Additional coverage that policy holders might take out in this area
No additional coverage would be needed as coverage is complete and comprehensive. Some airports and aircraft may also have an additional aviation policy to supplement their cover but often it is not necessary.
Aerospace coverage is a niche policy that is tailored precisely to cover all eventualities that may arise in the aeronautics industry. Specialized companies have devoted many hours ensuring that the tightest definitions covered the policy. No additional coverage is usually needed.
What will it typically cost?
The cost is usually a percentage of the total insured aerospace cover. The size of the percentage is wholly determined by the level of coverage required and the insurer chosen. Aeronautics is a difficult industry to gauge the risk of. It is generally perceived to be risky because of the uncharted territory many projects seem to go into. However, this risk is balanced by a solid basis of science, mathematics and rigorous testing. It can be argued that aeronautics is one of the most risk adverse industries because of this. Typically an aerospace insurance premium will be around 2% of the total cover. There are not many insurers offering aerospace insurance so premiums tend to stay fairly rigid.
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