For more on this part of the insurance industry:
This insurance secures companies that build, test, or supply aircraft parts, engines, or systems against specific risks. These firms may:
This cover helps when something goes wrong during design, production, testing, or repair. With UK-made parts used in thousands of flights each day, one mistake could lead to major losses.
A drone manufacturer could face a costly lawsuit if one of its systems fails during a defence trial. A single fault can lead to project delays, missed deadlines, and contract fines worth millions.
Without grounding or product liability cover, the business may be forced to absorb the loss. This can put pressure on cash flow, damage its reputation, and lead to staff cuts.
UK aerospace firms are investing more in sustainable aviation fuel, with companies like Rolls-Royce testing engines for sustainable aviation fuel (SAF) use.
New hydrogen-electric projects are also increasing demand for insurance that covers research and early-stage tech.
As more UK businesses enter the drone market, brokers are seeing more interest in cover for testing, IP, and compliance risks. But brokers must assess new issues as well:
Brokers should also watch for stricter UK rules on defence and dual-use goods. These can lead to legal issues if the cover isn't clear.
As more firms outsource design and production, it is harder to know who is at fault. Aviation and aerospace manufacturers insurance must now address shared risks in complex contracts.
Aircraft parts can fail, repairs can go wrong, and injuries can happen on site. This insurance helps cover the fallout when incidents like these occur.
Key coverage types:
Each policy is shaped around the work the company does. For UK aerospace firms, these hazards can be costly without the right protection in place.
Any business involved in handling aircraft parts should consider this cover. It applies to both large manufacturers and smaller suppliers across the UK. This includes companies that:
Even firms not working directly on aircraft can face legal claims if a part fails. Aviation and aerospace manufacturers insurance helps protect them from costly mistakes.
Typical costs may range from £5,000 to over £100,000 per year for UK firms.
High-value contracts, export work, or military projects often mean higher premiums. But prices vary based on business size, product type, turnover and threat level.
UK aerospace insurance brokers can earn between £35,000 and £85,000 a year. Senior brokers or specialists with defence clients may earn over £100,000.
Earnings depend on experience, firm size and commission from large commercial accounts.
They have different focus areas but often cross over in practice. Here’s a simple side-by-side look:
|
Type of manufacturing |
Aviation |
Aerospace |
|---|---|---|
|
focus |
flight within Earth’s atmosphere |
flight in air and outer space |
|
examples |
commercial planes, helicopters, drones |
satellites, spacecraft, launch vehicles |
|
what it builds |
engines, wings, cabin systems |
propulsion units, orbital systems |
|
used where |
airlines, defence, air freight |
space agencies, defence, R&D programs |
|
common where |
factories, airports, hangars |
labs, tech hubs, defence contractors |
Both sectors need strong design, testing, and safety processes. Aviation and aerospace manufacturers insurance supports these high-risk activities across both fields.
