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ARSA To Offer Liability Insurance To
Aircraft Repair Station |
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June 28, 2010 – The Aeronautical Repair Station Association (ARSA) and Polaris Enterprise Group unveiled an important new insurance option for the aviation maintenance industry. Aviation
Alliance Insurance Risk Retention Group (AAIRRG) which ARSA and Polaris
have been working jointly to establish and has received its insurance
license, known as a certificate of authority from the State of As a small subset of the aviation insurance market, repair stations have often been lumped with more high-risk elements of the aviation industry when seeking insurance. |
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This has led to higher premiums representing
an average of all aviation risk rather than that necessary solely
for repair stations based on a historic analysis of accident and
safety data. Because AAIRRG provides insurance only to repair
stations, it will be able to offer coverage at well below market
rates.
"AAIRRG offers the chance for a repair station to
take greater control of its insurance costs," said AAIRRG President Bill
Perdue. "For the first time, repair stations will have insurance
designed specifically for them which takes into account our industry’s
outstanding safety record. We’re no longer going to be lumped in with
the rest of the aviation industry." "This is excellent news for our members," said ARSA
Executive Director Sarah MacLeod. "This unique partnership with AAIRRG
represents an opportunity for our members to lower their operating costs
through control and ownership of their liability insurance." AAIRRG differs from an ordinary insurance company in that it functions as a risk retention group (RRG). An RRG consists of independent companies that assemble to create and fund a licensed captive insurance company, which operates under the Federal Liability Risk Retention Act of 1981 and is able to write common commercial liability insurance for its members. Each insured member is an owner of the RRG and receives shares in the RRG and is eligible for financial distributions from potential underwriting profits. |
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