An Exclusion G Discussion: Aircraft Exposure and the Aviation CGL

The Aviation CGL Policy is an extremely common and important insurance form utilized throughout the aviation insurance market. Procured by all different types of aviation entities, from FBOs to maintenance shops to aircraft charter operators, it is truly an omnipresent policy throughout the aviation market. It is, after all, the aviation industry's take on the classic CGL Policy. Like the standard ISO CGL form, Aviation CGL Policies generally contain Exclusion G, the Aircraft, Auto or Watercraft exclusion, which is generally intended to exclude coverage for most forms of aircraft-related loss. This fundamental exclusion is so broadly worded that folks in the aviation insurance market often underestimate it in the context of risk management, contract negotiation and policy construction, sometimes to crippling results.

Join in-house aviation insurance counsel Glenn Vallach and aviation underwriter MC Ernst for a lively and informative discussion that will help aviation insurance attorneys and professionals of all kinds master a crucial and pervasive topic in the aerospace market, the exclusion of aircraft losses on the Aviation CGL. They will illustrate these concepts with exemplar policy language, practical fact pattern examples and pertinent case law interpretations from around the U.S., as well as discuss some risk management strategies to consider in this all-important context.

1. Address the general framework and structure of Aviation CGL Policies throughout the aerospace insurance market
2. Master the text and application of the standard Aircraft, Auto or Watercraft exclusion (Exclusion G) on the classic Aviation CGL form, as well as similar policy exclusions
3. Identify practical scenarios to which Exclusion G may apply and the specific ramifications of those potential applications
4. Discuss legal advocacy and precedent throughout the United States relative to the more nuanced applications of Exclusion G
5. Recognize some potential risk management tactics to consider in terms of avoiding the pitfalls of Exclusion G