Aviation and ITIC

Professional Indemnity (PI) Insurance provides cover for aviation professionals for claims which are brought against them for losses suffered by their customers as a result of their negligence, error or omission. ITIC, as a specialist, not-for-profit provider of professional indemnity insurance, is a natural choice for those requiring protection from claims who work in the aviation sector.

Any party who acts as a professional, providing advice, information, designs, consultancy and asset management services, owes a duty of care to their clients. Examples in the aviation sector include Continuing Airworthiness Management Organisations (CAMO), aircraft managers, aircraft charter and lease brokers and aerospace designers. The standard of duty of care is the provision of “reasonable skill and care”.

In the event that the services provided by a professional fall below this standard and cause their clients a loss, the client can seek to recover these losses. For this reason it is now commonplace for contracts used in many sectors to hold a specific requirement for PI Insurance.

However, a PI policy is also there to protect the policy holder. The world is becoming more and more litigious and not all claims have merit. Escalating legal costs mean that the cost of innocence has never been higher, and in the event of an unfounded allegation of negligence, a PI policy will pay for the valuable defence of the Assured’s interests. ITIC has funded the defence of spurious claims against Assureds in a variety of worldwide jurisdictions, including the USA and Canada. Our team of specialists will also manage the claim on behalf of the Assured, saving them both time and money.

Put simply, any company providing advice, training, design, consultancy or asset management services, aircraft and airport operators and leasing companies should be cover for PI insurance. Whilst many professionals struggle to imagine a claim being made against them, ITIC’s experience confirms that mistakes frequently occur. As a specialist insurer of aviation professional risks, ITIC provides cover for a range of companies, some of whom may not immediately recognise that they could have an exposure to a PI claim. However, should their error or omission cause a loss to their client, or to a third party, then they could be held responsible. They could even be sued simply because they act as an agent for somebody else.