Aon Benfield, the global reinsurance intermediary and capital advisor of Aon plc, launched an insurance product for the charter aircraft industry addressing the financial losses associated with the cancellation of flights.
Structured in partnership with Mountfitchet Risk Solutions, the Aircraft On Ground (AOG) Protect product indemnifies aircraft operators for the financial loss incurred when their aircraft cannot be utilized by flight operators for a contracted charter flight, leaving the operator to sub-charter or reposition a replacement aircraft.
Traditionally, aircraft operators have had to replace the aircraft at their own cost, or have had to refund the flight, leaving passengers without an aircraft and affecting the operators’ profits and revenue. However, with AOG Protect, operators receive an insurance payout when a flight is cancelled for reasons including mechanical breakdown, accidental damage, crew sickness or even mid-flight diversions following mechanical fault.
AOG Protect will be offered to aircraft owners and operators through Mountfitchet Risk Solutions. The firm is already attracting some of the largest companies in the private jet sector, having already established links with Air Charter Service Plc (ACS), a global private charter broker.
Insurance capacity for the product is being provided by Swiss Re Corporate Solutions – a division of global reinsurer Swiss Re.