As worries about the economic health of insurance giant AIG dominated headlines last month, they also sparked concern among business aircraft operators about the state of their insurance coverage. Mike Nichols, NBAA’s vice president for operations, education and economics, responded, “NBAA recommends that operators who are concerned about their specific situation communicate with their aviation insurance broker about plans and contingencies.”
Many operators apparently followed that advice, acknowledged an AIG spokesman, who said the company received “lots of calls.” Even before the company’s taxpayer bailout on September 17, jittery policy holders were told “AIG continues to operate normally. It remains adequately capitalized and fully capable of meeting its obligations to policy holders.” The spokesman added, “From a customer standpoint if [a coverage incident] had occurred, it would have proceeded as though nothing extraordinary was happening.”
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