What does Products Liability Insurance in aviation cover?

Products Liability Insurance in aviation is specifically designed to address legal liability that arises from injuries or damages caused by defective products associated with aircraft. This would include scenarios where a component or part of an aircraft is found to be faulty and that defect leads to injury to persons or damage to property. The coverage is essential for manufacturers, suppliers, and other stakeholders involved in the production and distribution of aircraft products, as they could be held responsible if their products fail to perform as intended, resulting in harm.

This type of insurance is crucial in maintaining safety within the aviation industry, as any defect could have serious consequences not only for the aircraft operators but also for passengers and third parties. Hence, the focus is clearly on the liability aspect stemming from defects rather than covering loss of aircraft, passenger injuries, or third-party cargo losses, which are addressed by other types of insurance or coverages in the aviation sector.