Contacts
How many contracts have you signed with a supplier, purchaser, or airport authority? Are those contracts on file with your insurance company? Do you realize the items you agreed to in those contracts may not be covered by insurance?
Aviation businesses have many exposures to contemplate on a daily basis. Some of these perils are defined by contracts with their customers, vendors, or landlords. Entering into a contract formalizes the commitments by two parties, and defines which liability is assumed by each party. Simply forwarding a signed contract to your insurance advisor may not be the last piece of the puzzle.
The majority of contracts entered into by aviation businesses contain assumptions of liability that are not entirely covered by insurance. Or, at the very least, require multiple policies to address the entire contractual obligations. Our industry greatly misunderstands contractual liability and how it relates to the insurance policy. Many managers assume that by putting a contract “on file” with the insurance company and having the insurance company issue a certificate of insurance evidencing coverage or specific wording will protect them against 100% of the liability assumed in that contract. This couldn’t be further from the truth. By having the insurance company recognizes a signed contract, it merely means the insurance company will extend coverage or waive rights to subrogate to the extent the policy allows. It does not mean the policy is amending coverage to include perils that are excluded in the policy.
Many insurance policies have “contractual liability coverage.” Meaning, you have a certain amount of time, as defined by the policy, to forward the contract to the insurance company for review. It is important you understand the contents of the contract and your obligations to your insurer. You do not have the authority to extend coverage to a 3rd party or waive your insurance company’s rights to subrogate against a 3rd party.
An example of where you can find yourself uninsured, but committed to an exposure via a contract is “Recall Of Products, Work Or Impaired Property.” Most likely, this is specifically excluded from your policy. So, if your supplier asks you to pull your product and compensate them for this, because you signed a contract agreeing to, you may find yourself dipping into your checking account, not the insurance company’s.
Related Offerings
Private AviationYou May Also Be Interested In
- Event
02.09.2021
Webinar | Back to Basics: Insurance Program Options
- Blog
12.16.2020
Insurance Insights: Digital Health & Emerging MedTech
- Blog
12.04.2020
Winter Weather Safety
- Blog
11.16.2020
Q3/2020 Business Insurance Marketplace
- Event
11.05.2020
Webinar | Auto Liability Strategies When Premiums Soar
- Blog
11.04.2020
Beyond the Pandemic: What your broker should be talking with you about right now
- Blog
10.19.2020
Client Advisory: Increasing Cyber Risks in the Transportation Industry
- Blog
10.16.2020
Client Advisory: Dealing with Increasing Cyber Risks in the Biotech Industry
- Blog
10.14.2020
INSIGHTS Newsletter
- Blog
10.14.2020
Client Advisory: Dealing with Increasing Cyber Risks in Manufacturing
- Blog
10.12.2020
Client Advisory: Dealing with Increasing Cyber Risks in the Health Care Industry
- Blog
10.09.2020
Client Advisory: Dealing with Increasing Cyber Risks in the Construction Industry
- Event
10.08.2020
Webcast | A Tale of Two Breaches
- Blog
10.07.2020
Cybersecurity: Managing Risk in the COVID-19 Era
- Blog
10.05.2020
Why HR is a Key Stakeholder in Cyber Risk Management
- Blog
10.02.2020
Network Security & Privacy Considerations When Organization Shift from WFH to Office Environment
- Blog
09.30.2020
Elements of Cyber Insurance Coverage
- Blog
09.28.2020
Cyber Security and Privacy Concerns: COVID-19
- Blog
09.16.2020
Business Interruption Insurance
- Blog
09.04.2020
Insurance Insights: Real Estate & Hospitality
- Blog
09.02.2020
Insurance Insights: Construction
- Blog
08.31.2020
Insurance Insights: Manufacturing
- Blog
08.28.2020
Insurance Insights: Healthcare
- Event
08.27.2020
Webcast | MMA Q2 2020 Business Insurance Marketplace Update
- Blog
08.26.2020
Insurance Insights: Transportation
- Blog
08.24.2020
Q2/2020 Business Insurance Marketplace
- News
08.06.2020
Charlie Filisko's Article Featured in Properties Magazine
- Event
07.21.2020
Webcast | Senior Care - The New Normal
- Event
06.25.2020
Webcast | Navigating the Cyber Liability as Organizations Return to the Workplace
- Event
06.25.2020
Webinar | Paycheck Protection Program- Q & A Town Hall
- Event
06.18.2020
Webcast | Navigating the D&O Market Through Unprecedented Times
- Event
06.04.2020
Webcast | Navigating Challenging Business Insurance Market Shifts
- Blog
05.18.2020
Q1/2020 Business Insurance Marketplace
- Event
04.30.2020
Webcast | COVID-19: Managing the Impact- Weekly Update 4.30.20
- Blog
04.23.2020
Workers’ Compensation Insurance
- Event
04.06.2020
WEBCAST | Cares Act Overview
- Event
03.26.2020
WEBCAST | COVID-19: Navigating Insurance Implications
- Event
03.24.2020
Webinar | Navigating the Coronavirus and Managing the Impact
- Blog
03.24.2020
MMA COVID-19 Coverage 2020
- Blog
01.15.2020
Business Insurance Marketplace Outlook 2020
- Blog
10.14.2019
Tornado Preparation and Recovery Tips for Ohio Businesses
- Blog
10.09.2019
FDA to Begin Food Defense Plan Inspections on Food Facilities in 2020
- Blog
08.02.2019
Podcast | Choosing Your Broker
- Blog
03.28.2019
Five Trends in the Business Aviation Industry
- Blog
02.25.2019
Top Challenges Facing the Banking and Financial Services Industry
- Blog
02.19.2019
How Technology is Impacting the Wholesale Distribution Industry
- Blog
02.08.2019
Businesses Required to Obtain a Spotted Lanternfly Permit
- Blog
01.16.2019
How Technology is Reshaping the Agriculture Industry
- Blog
01.11.2019
Is Ocean Wave Power the Next Big Thing in Renewable Energy?
- Blog
01.08.2019
Five Technologies Impacting Safety and Productivity in the Construction Industry
- Blog
01.03.2019
Four New Advances that are Revolutionizing the Hospitality Industry
- Blog
12.19.2018
Does Your Company Know What To Do After a Cyber-Attack?
- Blog
12.17.2018
Brain Injuries in the Workplace
- Blog
12.14.2018
New Algorithms to Spot Fake Pictures for Insurance Claim Verification
- Blog
12.10.2018
Digital Transformation Unlocks New Opportunities for Financial Services Industry
- Event
10.25.2018
Framework of a Cyber Breach
- Event
10.18.2018
Workers Compensation Red Flags
- Blog
10.17.2018
What's Keeping CEOs Awake These Nights?
- Blog
07.24.2018
Mid-Year Economic, Insurance and Risk Management Marketplace Update
- Blog
07.05.2018
Construction Industry Employee Engagement
- Blog
06.28.2018
Subcontractors without Workers’ Compensation Coverage May Cost You
- Blog
05.11.2018
Drones: The New Highway in the Sky
- Blog
05.10.2018
Identity Protection: The Right Voluntary Employee Benefit
- Blog
05.09.2018
Flood: Understanding the Risk, Navigating Insurance Options
- Blog
05.08.2018
GDPR is Coming. Are You Ready?
- Blog
05.08.2018
OSHA Compliance Alert
- Blog
05.07.2018
Consider the Fair Labor Standard Act for Internships
- Blog
04.30.2018
Plan Sponsor Quarterly Calendar
- Blog
04.25.2018
Hours of Service Rules for Commercial Drivers
- Blog
04.24.2018
Severe Weather: Why it Matters
- Blog
04.17.2018
Preparing for a Product Recall
- Blog
04.17.2018
Understanding Your Investment Policy Statement
- Blog
04.05.2018
Safety Resources - Excavation Safety Stand Down
- Blog
04.04.2018
Electronic Logging Devices - A Hacker's New Window?
- Blog
03.21.2018
Recap of MMA Seminar: Employment Law 2018
- Blog
03.13.2018
Understanding Your Aviation Policy: There's More to Consider Than Price
- Blog
02.01.2018
Construction Contracts
- Blog
01.31.2018
Texting While Driving
- Blog
10.06.2017
The 4 Myths of IT Data Security
- Blog
09.25.2017
Got Hail?
- Blog
09.25.2017
Catastrophic Disasters
- Blog
09.15.2017
Cyber Breach - Equifax
- Blog
09.05.2017
Employee Retention
- Blog
02.01.2017
A Gap In Coverage
- Blog
10.17.2016
Drones expand business' horizons - and their liability