LPH has a wealth of experience in this class of insurance. Aviation risks are extremely complex and require both experience and expertise in this highly specialised area, making a team with an established track record essential.

LPH can provide professional advice and broking expertise to all passenger and cargo airline operations globally. Our dedicated team specialises in providing all aspects of aviation and aerospace related services. Our clients span the globe from the USA, Europe, Russia and the CIS, to Africa, the Middle East and the Far East.

LPH have dedicated teams of experienced insurance professionals who can manuscript solutions for airline customers. Through our extensive involvement in the aerospace industry we have been approached with operational, financial and logistical problems of every type, and we have therefore built a portfolio of solutions which can be adapted to the specific problems of airlines and aircraft owners.

LPH can act for an airline direct or work through an airline's designated broker. We can also address problems on behalf of other Lloyd's brokers who hold a general mandate to manage the affairs of an airline.

We can arrange all the coverages described below, and we can manuscript one-off policies to address any unusual or transactional exposure related to the operation or ownership of aircraft.

Airlines

Covering full airline operations against Hull All Risks, Breach of Warranty, War Risks, and Comprehensive Legal Liability of an airline customer. Fill out the questionnaire here (Word .doc), or click here for Airline Passenger and Cargo Liabilities Proposal Form (Word .doc)

Products and manufacturers

Covering a manufacturer's legal liability, which can result from loss events, related to the use, manufacture and design of a client's product.

Airports

Covering the legal liability of airports to passengers and airline customers, including all physical damage exposures to plant, building and equipment. Extended coverage to address consequential loss resulting from airport closure for whatever reason. We can also cover air display and air race event organisers' liability. Click here for a Proposal Form (Word .doc).

Financial institutions involved in aircraft financing and leasing

Covering financial institutions against lawsuits and all forms of legal action which can result from an accident to owned equipment whilst under lease to an airline. Exposures can include the failure of an airline lessee's own hull and liability insurance. In the event that the lessee's own insurances fail to respond or are inadequate to pay the full liability exposure of a loss event, a financial institution as owner could be directly joined in the action and could find themselves legally liable for massive damages, without the benefit of any insurance coverage. LPH provides full Contingent coverage for both Hull and Liability exposures. Cost is minimal but coverage is broad and substantial. Click here for a Proposal Form (Word .doc).

Total loss only

To cover an Airline lessee for specific no-quibble payments in the event of a Hull loss to an aircraft in which they may have an interest in the lease. Claims are paid even where the airline has no ownership interest. When an airline has a loss there are significant incident-related costs which can bankrupt a small or start-up airline. LPH total loss coverage provides a fund to address these costs and allows for the continuance of the operation. Click here for a Proposal Form (Word .doc).

Ground risks only

Covering aircraft whilst on the ground between leases or whilst for sale. Coverage includes protection whilst the aircraft are on demonstration and delivery flights. Coverage and rates available on a same day turn-around basis. Complete a Proposal Form (Word .doc).

Deductible insurance

Covering an airline against the uninsured first loss deductible, which the insured is required to assume under an Airline Hull All Risks Insurance policy. Deductibles are usually $500,000 for narrow-body, $750,000 for B737/A320 types and $1million for wide-body. All losses and accidents suffered by airlines result in high shock costs, which can challenge an airline's ability to stay in business. The LPH deductible programme covers airlines against the otherwise guaranteed exposure to significant uninsured repair cost.

Mechanical breakdown

Covering the exposure faced by an airline when an engine sustains a mechanical breakdown. Hull Insurance policies provide no protection against this type of peril so without a dedicated mechanical breakdown policy, an airline is exposing its balance sheet to uninsured losses equal to the value of each engine. LPH can insure against the repair and replacement cost of a mechanical breakdown with a broad coverage, proven to be effective against a major operational risk. Click here for a proposal form (Word .doc)

Loss of use

Covering an airline for a pre-agreed daily claims amount, in the event that an aircraft is unable to be operated. A non-operational aircraft still has to have its lease payments met, and needs to be replaced with interim lift. The LPH loss of use policy provides dedicated cash to cover these costs and any other fixed and variable costs that an airline has to pay when equipment cannot be operated. This coverage is crucial for start-up airline operations as working capital is soon consumed if operations have to be suspended due to the inability to operate. Coverage protects against the continued responsibility to pay lease rentals whilst an aircraft is being repaired following a partial loss. Partial losses can take months to repair and thus airlines should always consider the benefits in insuring their lease payment obligations.

Contract loss of profits

Covering an airline against the predicted loss in profits resulting from their inability to complete a specific contract due to force majeure, war, repudiation or aircraft failure.

Aerospace project completion coverages

Covering a client who may be building a new Hush Kit or developing a new aerospace product whose success will be determined by the customer's ability to obtain an STC or regulatory approval. Insurance can be obtained to cover against losses resulting from the inability of a policyholder to obtain a standard type certificate. Projects, which are part funded by customer deposits, can have the returnability of the deposit insured so that the deposit funds can be used to fund the research and development of the project. LPH can create insurances, which can be used to obtain risk funding for new projects and product development.

War risks insurance

LPH has the most competitive approach to providing War Risk coverage for airlines. Coverage includes full War protection, hijacking, and Detainment and Confiscation losses.

LPH is particularly noted for advising, structuring and assisting the owners and management of start-up airlines. The requirements and insurance support demanded by a new airline are significantly different from those of a large well-established airline. LPH protects the capital investment and provides the type of contingent protection which can help an airline sustain an early unpredictable loss or event. LPH works with the operations and financial manager of a start-up operation, to tailor the most cost-effective programme, and to address the unforeseen and unpredictable exposures, which may strike and harm any new operation.

For more information please contact Jeremy Leggett on Jeremy Leggett