PROTEST DAMAGE AND ILLEGAL CHARTERS FUEL INSURANCE CONCERNS
December 15, 2023
After protestors caused $1 million in damage to a privately owned Cessna Citation CJ1+, the International Transport Intermediaries Club (ITIC) discussed carrier exposure to liability and what insurance may cover. Private charter operators must “carefully consider risks that might be excluded from the hull insurance, such as whether pilots were suitably qualified for a flight, which could have an impact on flight crew managers or those responsible for all aspects of operations.” Involved parties must not assume that everything is covered by the policies on the aircraft itself. This is especially important because coverage can be denied for “illegal operations” which occur when charter brokers deliberately or negligently arrange illegal or “gray” charters. “Indemnity insurance can provide an important defense and backstop for companies and individuals, with payouts for things like legal costs but is not substitute for due diligence.”
If you have any questions, please contact Evelyn Sahr at 202.659.6622 or esahr@eckertseamans.com; Drew Derco at 202-659-6665 or dderco@eckertseamans.com; Jay Julien at 202.659.6648 or jjulien@eckertseamans.com, or any other attorney at Eckert Seamans with whom you have been working.
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