European Airlines Reject Insurers` Ultimatum
The terrorist actions of 11th September set off a chain reaction in the world of civil aviation. One relationship which changed forever was between the airlines and their insurers. Previously, third-party war and terrorism risk coverage - against buildings and people on the ground - was included in the airlines` insurance at no extra charge; the risks were so remote.
Events in New York and Washington showed that the risk did exist, and the magnitude of the damage was far beyond what could be adequately covered by the aviation - or for that matter, the insurance - industry.
Very shortly after the attack, insurance companies cancelled third-party war and terrorism cover. Without this, a great deal of airline activity simply cannot take place. National governments stepped in with guarantees, and the industry kept flying. These were interim lu on d ig d! f l ga wh e w! ra em ts er wo ad ut