Contingency Insurance From PETER H. BRAASCH

Contingency Insurance From PETER H. BRAASCH

High costs may occur if an aircraft becomes unavailable due to collision or engine damage. Commercial aircraft operators can cover these risks by contracting an operation interruption insurance policy; the insurer’s indemnification can compensate additional costs, fixed costs & lost profits.

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This type of policy customarily includes retention in form of a waiting period (e.g. five, seven days, etc.) depending on the type of aircraft & its deployment, plus a maximum payment period that is also the maximum payable indemnity.