A small fault in a part supplied can cause catastrophic results and/or extremely high costs. Manufacturers and repairs have a high duty of care and certainly to comply with your contractual requirements it is paramount to have product liability cover.
Product Liability covers your liability for goods and services that you have provided after they have left your care, custody, and control. General liability policies often do not cover aviation related exposures and certainly don’t cover grounding liability. Small faults can result in legal liabilities and potentially large costs.
As a manufacturer, designer, repair shop or service provider, you have a duty of care to your customers.
What Is It?
Product liability is designed to protect the insured against third party bodily injury and/or property damage caused by an aviation product that the insured has provided to a customer.
For example, if a manufacturer makes a fan blade in an engine which causes an aircraft to crash, they could be sued by a third party for the damage caused.
Bodily Injury or property damage arising out of the possession, use, consumption or handling of any goods or products manufactured, constructed, altered, repaired, serviced, treated, sold, supplied, or distributed by the Insured or his employees after such aviation goods or aviation products have ceased to be in the possession or under the control of the Insured.
Who Can Use it?
Do you sell part(s) or provide a service to customers that you owned, maintained, repaired, overhauled or serviced?
Do you design, manufacture, repair, alter or supply any product.
If yes to any of the above, then you must have product liability cover.
Often included in PPH alongside Products and Hangar Keepers.