Products Liability Coverage for Aviation Manufacturers

Long-tail protection for parts makers, component manufacturers, and aviation OEMs

Long-Tail
Protection
PMA/TSO
Coverage Included
Recall
Expense Covered
Supply
Chain Protected

The Aviation Manufacturing Insurance Problem

When your parts fly for decades, your liability exposure doesn't have an expiration date.

Decades of Products Liability

A part you manufactured 20 years ago is still flying today. If it fails, you're still liable. Aviation products liability is unique because of the extraordinarily long service life of parts and the catastrophic consequences of failure. Most general manufacturers' policies don't contemplate this timeline.

Recall Exposure

An AD (Airworthiness Directive) or service bulletin affecting your parts can trigger recall costs in the millions. Inspection programs, mandatory replacements, fleet grounding costs, and customer notification expenses add up fast. Most policies exclude recall entirely.

FAA PMA/TSO Compliance Risk

Holding PMA (Parts Manufacturer Approval) or TSO (Technical Standard Order) authorization creates specific liability exposure tied to FAA certification. If a certified part is later found to not meet standards, the regulatory and liability consequences are severe.

Warranty Obligations

Aviation warranty claims can be substantial. A defective batch of components can trigger warranty obligations across hundreds of aircraft. The financial exposure from warranty claims alone can threaten a manufacturer's viability if not properly insured.

How Nacelle Partners Fixes This

Aviation-specific products liability that understands manufacturing, certification, and long-tail risk.

1

Aviation Products Liability

Purpose-built products liability coverage for aviation manufacturers. Covers bodily injury and property damage claims arising from your manufactured parts and components, with limits that match the catastrophic exposure aviation products create.

2

Completed Operations

Coverage for liability arising from parts and products after they leave your facility. Completed operations coverage is essential for manufacturers because the liability exposure begins when the product enters service, not when it leaves your shop.

3

Recall Expense Coverage

When an AD or service bulletin triggers a recall, the costs are immediate and substantial. Recall expense coverage pays for notification, inspection, replacement, and associated costs that products liability policies typically exclude.

4

Product Withdrawal

Voluntary product withdrawals before an AD is issued can prevent larger losses. Product withdrawal coverage reimburses the costs of proactively removing products from the market when a defect is discovered.

5

Professional E&O

Errors and omissions coverage for design, engineering, and certification services. If a design decision is later questioned, or engineering documentation is found to be inadequate, E&O coverage provides defense and indemnity.

6

Cyber for Connected Avionics

Modern avionics are networked and connected. If you manufacture avionics, flight management systems, or connected components, cyber coverage protects against liability from software vulnerabilities and data security incidents.

What Your Manufacturing Program Includes

Products & Completed Operations

  • Aviation products liability (bodily injury & property damage)
  • Completed operations coverage
  • PMA and TSO certified parts coverage
  • Grounding liability
  • Umbrella/excess products liability

Recall & Withdrawal

  • Mandatory recall expense (AD compliance)
  • Voluntary product withdrawal costs
  • Customer notification and communication
  • Replacement parts and labor reimbursement
  • Business interruption from recall events

General Business Protection

  • General liability (premises and operations)
  • Professional errors & omissions (design/engineering)
  • Cyber liability for connected avionics
  • Workers' compensation and employee benefits (PEO)
  • Commercial property and equipment

Questions Aviation Manufacturers Ask Us

How far back does products liability coverage extend?

Aviation products liability is typically written on an occurrence basis, meaning it covers incidents that occur during the policy period regardless of when the product was manufactured. For long-tail exposure, we can also structure prior acts coverage.

Does recall coverage really pay for AD compliance?

Yes. When an Airworthiness Directive requires inspection, replacement, or grounding of your parts, recall expense coverage pays for notification, inspection costs, replacement parts, and associated labor. This is separate from products liability.

What about parts we manufacture for OEMs?

Tier 2 and Tier 3 suppliers face the same products liability exposure as OEMs. Our program covers your parts regardless of where they end up in the supply chain, including components integrated into larger assemblies by other manufacturers.

Is grounding liability included?

Yes. If a defect in your product causes an aircraft or fleet to be grounded, grounding liability covers the resulting claims from operators for loss of use, charter costs, and other consequential damages.

Do you cover both PMA and OEM parts?

Absolutely. Whether you hold PMA approval for replacement parts or manufacture under OEM authorization, our products liability program covers your specific certification type and the associated regulatory exposure.

What limits are available for products liability?

We offer products liability limits from $1M to $100M+ depending on your manufacturing volume, product type, and customer requirements. Aviation manufacturing typically requires higher limits given the catastrophic loss potential.

Ready to properly protect your manufacturing operation?

See how aviation-specific products liability, recall coverage, and business protection work together.

Get your quote to see your specific rates