About Aircraft Builders Council, Inc.
Who we are
The Aircraft Builders Council was founded in 1955 at a time when aviation products liability coverage was in its infancy and not readily available on the open markets. Working together, sharing a common goal, a group of aviation manufacturing companies, brokers and insurers developed a products liability insurance facility for the benefit of manufacturers in the aviation industry.
Since its formation, the Aircraft Builders Council program has provided aviation products liability insurance and continues to be the leader in developing coverage to satisfy the dynamic needs of the industry that it serves. Participants in the program may secure coverage limits of up to USD 1 billion.
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Currently, the law offices of Fitzpatrick & Hunt are in the role of ABC Defense Counsel, with Mendes & Mount continuing to handle asbestos, chemical exposure, and other toxic tort and health hazard claims ("Toxic Claims") for ABC.
What we do
The Aircraft Builders Council Program provides:
- A continuously available insurance market and capacity of up to USD 1 billion.
- Broad aviation products and related risks coverage.
- Premium discounts in recognition of insureds' continued participation in the program.
- Centralized claims management and defense by experienced aviation counsel.
- No cross claims among insureds, which reduces defense costs.
- Product integrity programs and seminars at insureds' facilities at no additional cost.
- A Board of Trustees who, with American and London brokers, continuously review and monitor the effectiveness of the program.
- An annual conference which is an informational forum on recent developments in aviation, insurance and products liability.
- To support and promote the continuity of an innovative, competitive aircraft products liability insurance facility;
- To communicate the existence of such insurance program to aerospace manufacturers and product suppliers;
- To coordinate an annual industry-leading aviation safety and insurance conference that is attended by brokers, underwriters, and existing and potential insureds;
- To promote the use of the program's product safety and liability prevention seminars.
How The Program Works
The risk transfer capacity provided by the ABC insurance facility is by means of a "line slip" renewed each October in the London market. The ABC program's London coordinating broker markets the line slip by gaining quota share underwriting capacity commitments from a number of financially strong Lloyd's syndicates and London and overseas insurers.
The lead underwriters take large risk positions on the slip and perform the underwriting negotiations on behalf of all of the underwriters providing capacity on the slip for each placement. Each insured's London broker performs the direct negotiations with the lead underwriters.