For more on this part of the insurance industry:
Aircraft maintenance and repair insurance shields businesses that service, repair, or inspect aircraft from financial losses. It covers incidents such as:
The UK’s aircraft maintenance industry ensures airworthiness for airlines and private operators. Insurance protects businesses from economic and legal risks as servicing demand grows.
The UK government’s rise in defence spending has increased demand for aircraft servicing and insurance. New digital tools and predictive maintenance systems are changing how insurers assess and cover maintenance work.
Ongoing part and labour shortages are also causing delays which push insurers to rethink pricing and cover terms. Other issues that need to be addressed by brokers include:
Sudden delays in aircraft repairs are increasing aircraft-on-ground (AOG) situations which leads to more business interruption claims. New hybrid-electric propulsion tech is also bringing unknown hazards due to limited data.
The following businesses need this coverage:
Insurance helps safeguard against monetary losses and ensures compliance with UK aviation rules.
Stakeholders in this industry can add policies to create a well-planned insurance plan. Common coverage options include:
Aircraft maintenance and repair insurance protects businesses from threats linked to servicing, inspecting, and repairing aircraft.
A major repair is any repair that affects an aircraft’s airworthiness or safety. The UK Civil Aviation Authority (CAA) requires approval for these repairs before the aircraft can fly.
They often involve critical parts such as the structure, control systems, or landing gear. Insurance acts as a safety net for this activity.
The aircraft owner is responsible for keeping the aircraft airworthy and following CAA regulations. Maintenance is usually performed by CAA-approved Part 145 organisations or licensed engineers.
Liability is shared between the owner and the maintenance provider. Owners must arrange proper maintenance, while providers are responsible for correct repairs and servicing.
If poor maintenance causes an issue, both parties can face legal and financial consequences.
Aircraft maintenance can be a profitable industry, with demand growing as more aircraft require servicing. The global market is expected to reach USD$131 billion by 2030.
In the UK, growth is driven by increased defence spending and new aircraft purchases.
Insurance is a major cost, covering risks like workmanship errors and liability claims. Managing insurance expenses helps MRO businesses stay profitable in a competitive market.
|
Aspect |
Aircraft mechanic |
Aircraft maintenance |
|---|---|---|
|
definition |
a person who repairs and services aircraft |
the overall process of keeping aircraft safe and operational |
|
scope of work |
focuses on fixing engines, landing gear, and mechanical parts |
includes inspections, repairs, and part replacements |
|
certification |
requires a licence (eg CAA or EASA Part-66) |
follows UK aviation regulations for safety and airworthiness |
Aircraft maintenance and repair insurance covers both roles. Make sure to save this page for reference and visit IB Markets for tailored insurance products.
