Aircraft manufacturer legal liability

Product liability

To protect themselves from liability for loss or damage arising from a design flaw, manufacturers need to contract product liability insurance.

Aircraft manufacturer's liability coverage protects against the loss or damage that is caused by a defect in the aircraft after delivery.

The existence of a defect is a necessary but not a sufficient condition for triggering coverage. In fact, the defect must be at the origin of the accident or incident (event) that causes bodily injury or physical damage to property.

Sub-contractors and parts suppliers can also opt to purchase insurance that covers their third party liability.