McGill and Partners has launched a specialist aviation insurance solution designed to protect aircraft spares and equipment stored on the ground against war-related risks.
The product addresses a gap that has existed for years in traditional aviation hull war policies.
Historically, war-risk insurance generally covered aircraft spares only while they were in transit by air or sea. Once engines, components or other valuable equipment were placed in warehouses or hangars, they were often left without protection against war-related damage or destruction.
That exposure has become increasingly significant as the value of modern aviation assets continues to rise.
Individual aircraft engines can approach $50 million in value, creating substantial balance-sheet risk for airlines, lessors and maintenance providers.
The new policy extends coverage to stored equipment and ground-based spares against events such as war, invasion, hostile acts, rebellion, insurrection and military action.
The solution includes defined per-item insured values and annual aggregate limits.
Its launch comes at a time of heightened geopolitical instability, with conflict in parts of the Middle East reinforcing concerns over the vulnerability of aviation infrastructure and supply chains.
McGill and Partners said the aim is to provide operators with greater financial security over critical assets regardless of whether they are in operation or storage.
For airlines and lessors holding large inventories of engines and components, the product could become an increasingly relevant tool in risk management strategies.
