The Binder 51.3 | Summer 2026

VOL. 51 NO. 3 — summer 2026

PRESIDENT’S MESSAGE

REFLECTIONS ON DATA, LARGE CLAIMS, AND THE TRAITS THAT MAKE OUR INDUSTRY ENJOYABLE AGENT / BROKER DIVISION

CYBER LIABILITY COVERAGE ATTORNEY DIVISION

UPDATES: AIA CONFERENCE AND INDUSTRY NEWS UNDERWRITER DIVISION

NAVIGATING A SOFT MARKET EDUCATION COMMITTEE

WHAT’S THE DIFFERENCE? AIRCRAFT HULL AND LIABILITY COVERAGES 2026 AIA CONFERENCE

CHEERS TO 50 YEARS

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table of contents

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Reflections on Data, Large Claims, and the Traits that Make Our Industry Enjoyable

What’s the Difference?

Aircraft Hull and Liability Coverages

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24

President’s Message

education committee

agent / broker DIVISION

2026 aia conference

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cyber liability coverage

cheers to 50 years

attorney DIVISION

2026 aia premier members

Division Updates: AIA Conference and Industry News

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safety report

underwriter division

How Aviation Organizations Can Support the Mental Health and Wellness of Their Workforce

navigating a soft market

EDITOR

KIM ROSENLOF

The ideas and opinions expressed by authors of articles published in The Binder are wholly their own and do not necessarily represent those of the Aviation Insurance Association.

The articles are not provided as legal advice.

www.aiaweb.org 3

Published by the Aviation Insurance Association 2365 Harrodsburg Road Suite A325 Lexington, KY 40504

PRESIDENT’S MESSAGE

Reflections on Data, Large Claims, and the Traits that Make Our Industry Enjoyable Ian Wrigglesworth, Global Head of Aviation and Aerospace Specialty, Guy Carpenter — a marsh business aia president 2025–2027

Dear Members,

Accordingly, we have scheduled a Sunday to Wednesday conference in 2027, with the opening reception Sunday night at the wonderful Broadmoor property in Colorado Springs, Colorado.

I am delighted to be writing this in the midst of a fantastic summer (which means hotter in the UK).

In my specialised sector of reinsurance, we are currently finishing several major reinsurance renewals. There has been enough reinsurance capacity to complete placements with reinsurance markets of the client’s choice.

In terms of industry trends, we all seem to spend a considerable amount of time, money and energy on data.

As each insurance — and in turn, reinsurance — business seeks to become more professional, the analysis of data is at the heart of changes.

Artificial Intelligence (AI) is an incredible tool when correctly harnessed, and we are told that our industry is changing forever due to increasing AI use.

What a fantastic AIA conference we had in May. It was very well attended, and from the extensive feedback received, it was a popular hotel and city. We continue to wrestle with conference scheduling by listening to and implementing suggestions. In general, the smaller the agency or firm, the more it seems that the use of a weekend is preferred; the larger the agency or firm, the more weekdays are preferred.

In terms of industry trends, we all seem to spend a considerable amount of time, money What is it, though, that we want AI to do? Make and energy on data. the decisions or make it

easier for the industry to make decisions? Do all the work or do the repetitious, mundane aspects of the work?

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PRESIDENT’S MESSAGE

using common sense and being personable, hardworking and optimistic are all very highly valued traits. The people in our industry that exude these traits not only make it a wonderful business to be in, but also ensure that we all receive a very enjoyable return for the effort we put in. There are longer softer markets than harder markets so we all need to adapt these traits so we may make the best of both market trends.

If the latter, we will increasingly need the AIA Education Committee to devise courses that train newer entrants to the market. In past years a great deal of one’s early career was part repetitious administration whilst learning and gaining experience that is valuable to the future career.

Another trend involves the complexity of large claims. We require extensive debates about coverage and quantum, and perhaps this has always been the case, but the length of time to settle seems to increase year by year. The legal profession’s help with these settlements seems to have increased too, which comes at a considerable cost. With legal help normally on the larger claims, it naturally follows that this bill ends with a significant additional cost of the original claim being paid by reinsurers. This recent trend also means that the wording of coverage is heavily scrutinised and will continue to be so.

I hope to see many of you at the AIA Open in Atlanta on Monday, September 21; the London Symposium on Tuesday, October 27; and the new Zurich Symposium on Tuesday, February 23.

Ian Wrigglesworth Ian Wrigglesworth currently serves as Global Head of Aviation and Aerospace Specialty at Guy Carpenter A Marsh Business, based in London. As an active AIA member for more than 25 years, Ian has served in several capacities on the AIA Board of Directors. He assumed the role of AIA President in April 2025.

I finally would like to comment on personality traits within our wonderful aviation market. I continuously find that

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agent/broker division

cyber liability coverage

Rachel Lewis, AMA-CPM, CAIP, Operations Manager, Schrager Hampson Aviation Insurance Agency AIA Director, Agent/Broker Division Cybercrime is a risk that affects all industries, including aviation. Since any individual or business could be a victim of cybercrime, how can we best prepare our insureds for this risk?

identify as scams. Some common tools to manage the risk of data breaches include multi-factor authentication for any program containing sensitive client information and regular cyber security and phishing training for employees.

Limits for this coverage typically start at $1,000,000.

Educating insureds on cyber liability coverage and what it covers is the first step. Since this type of coverage is still relatively new in the market, policy forms are not standardized. Coverage types and names for them vary slightly by insurer, though they typically contain many of the same core coverages. In the past, some commercial general liability (CGL) policies may have provided unintended coverage for cyber risks, however, most CGL policies now include a cyber liability exclusion endorsement, making this coverage even more critical for our aviation clients.

First Party Fraudulent Transfer Coverage Though we refer to the policy type as “cyber liability,” these policies typically also carry first-party coverage for things like fraudulent transfer. The FBI reported over 3,500 domestic incidents of fraudulent transfer in 2025. The 2025 Annual Internet Crime Report notes that in the past, many fraudulent transfers were a result of business email compromises, however, there has been a rise in account takeover as a means of fraudulent transfer (Federal Bureau of Investigation 2026).

Third Party Privacy Breach Liability The Third-Party Privacy Breach Liability limit extends coverage to the insured for any damages the insured is required to pay due to a data breach of personal or private data of the insured’s clients. This is a very important coverage as scams, such as phishing, are commonly used to gain access to private data and increasingly more difficult to

The FBI reported over 3,500 domestic incidents of fraudulent transfer in 2025.

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Victims of this type of scam receive a phone call that is spoofed to look like it is coming from their financial institution, asking the insured to provide secure information, or even just advising them to stay out of their bank account for “maintenance,” while the

agent/broker division Cyber Incident Response Coverage

cybercriminal fraudulently transfers funds out of the account.

If an insured experiences a data breach, they can rely on the Cyber Incident Response Coverage within their cyber liability policy to navigate the incident.

Cyber liability policies offer several coverages that can apply to these incidents, such as legal and regulatory costs.

Since financial institutions often have different policies in place for attempting to retrieve funds, having cyber liability coverage in place offers insureds a safety net if their funds cannot be retrieved by their financial institution. Due to the prevalence of these types of incidents, coverage is always offered at a lower sublimit of the total policy limit.

Oftentimes, there are federal and/or state guidelines that dictate how a data breach must be handled and when or how the affected parties must be notified, so this coverage limit offers resources for insureds to ensure they are compliant in handling the breach. Crisis communication is another coverage typically offered, which is often used to offer hotlines for affected parties to ask questions regarding the breach along with handling any legally-required initial notification to the affected parties.

Insureds can mitigate this risk by ensuring all accounts require multi-factor authentication and enabling Positive Pay at their financial institution. Positive Pay is a fraud prevention service that verifies checks and electronic payments against a pre-approved list to prevent unauthorized transactions.

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agent/broker division Cyber Extortion

For example, if a cybercrime caused a disruption making flight booking software inoperable and resulting in the policyholder incurring additional expenses for supplemental charter to get all their clients’ flights completed while the system is down, the additional costs could be reimbursed under the extra expense limit.

Limits for this coverage typically begin at $1,000,000.

Cyber extortion can also be covered in cyber liability policies. This occurs when a cybercriminal controls a critical system/ program/website of a company and requires a ransom to be paid to return control to the insured. Limits for this coverage typically begin at $1,000,000. In 2025, the FBI reported over 3,600 complaints of ransomware with more than $32 million in losses (Federal Bureau of Investigation 2026).

AI’s Impact on Cyber Crime

Business Interruption Coverage

AI can be a wonderful tool when used for positive purposes, but unfortunately, cybercriminals are already using it to their advantage. According to the FBI, “AI technology enables the creation of convincing synthetic content.” Such content could be video or audio, which could be difficult for the average person to differentiate from real content.

Another important first party coverage available in cyber policies is business interruption coverage. Much like business interruption coverage found on commercial property policies, Income Loss and Extra Expense coverage can be extended to insureds if a qualifying cause of loss occurs that requires them to halt operations or incur additional costs to remain open.

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agent/broker division Conclusion

There were more than 22,000 complaints of AI-related cybercrime in 2025 (Federal Bureau of Investigation 2026). This number far exceeds complaints related to fraudulent transfers and cyber extortion. As AI continues to advance and be exploited for nefarious purposes in business applications, emerging risks will require cyber liability policies to evolve, and our insureds should remain aware of these changing exposures.

Risk Management

Though cyber liability policies vary from insurer to insurer, most policies contain fraudulent transfer, cyber extortion, business interruption, and incident response coverage, typically along with other additional coverages. With the rise in AI use in cybercrimes, it is even more important that we educate our insureds on the importance of carrying this coverage and having risk management in place for their cyber security.

In 2025, the FBI reported over 3,600 complaints of Lewis began her career ransomware with Rachel as an assistant to the president more than $32 million at Schrager Hampson Aviation Insurance and is now a licensed in losses insurance agent. Rachel serves as

To go beyond simply offering coverage to our insureds, we should encourage our clients to manage their cyber risks along with having the appropriate coverage in place. Some ways that cyber risk can be managed are:

the AIA Director of the Agent / Broker Division.

Source

sing multi-factor authentication when able.

U Use of cyber security programs on company equipment such as Norton or McAfee.

Cyber security training for all employees, including training on phishing and spoofing.

Having “Positive Pay” in place at their financial institution.

Federal Bureau of Investigation. 2026.

2025 Annual Internet Crime Report. PDF, Federal Bureau of Investigation. https:// www.fbi.gov/file-repository/2025_ic3report. pdf/view.

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attorney division

Division Updates: AIA Conference and Industry News Mark Meyer, Partner, HF AIA Director, Attorney Division

My thanks to every one of the 30 attendees who participated in the CLE sessions in Dallas, which started with contractual indemnities and transfer of risk, our panellists explaining the process and pitfalls. It is apparent that taking on liability of another party and how that sits within one’s own insurance does not necessarily produce seamless cover.

appropriate credits. Expect for there to be more discussion of this change and some schedule adjustments at future AIA conferences.

Turning to the division meeting, I congratulate Director-Elect Jennifer Fleming Perdigao, who will become Attorney Division Director after the 2027 conference. The meeting included a presentation on the fundamental principles behind aircraft leasing, an increasingly significant part of aircraft operations. There was a consensus among those at the breakout that we should broaden the topics covered in our sessions and included in The Binder.

We then moved to understanding a new methodology being used in courts to analyse the human factors in explaining pilot actions taken during inflight accidents. We concluded with the Butterfly Effect: an analysis of how small nuances can have great impact on the outcome of litigation. My thanks to our presenters and panellists for the considerable time and effort they spent creating a wonderful session.

With that in mind, I mention on the next page some new developments from across the aviation world, all of which have ramifications for those providing legal advice in this sector. I thank our Director-Elect for her contribution to this synopsis.

There was discussion to merge some CLE and CIE sessions to ensure that one can always get

personal and advertising injury, construction defects, environmental coverage, and professional lines.

Jennifer Fleming Perdigao is a Partner and Co-Chair of the Aviation and Transportation Practice Group at Tressler LLP, where she also serves as Managing Partner of the firm’s Los Angeles office. Her practice focuses on aviation insurance coverage and defense, as well as a broad range of non-insurance advisory matters.

Jennifer’s insurance coverage experience includes insurance coverage analysis and insurance litigation involving commercial general liability, aircraft and aviation operations,

In addition to serving on the Aviation Insurance Association (AIA) Board of Directors, Jennifer is also an active member of the International Aerospace Women’s Association, The NinetyNines International Organization of Women Pilots and AOPA. Jennifer is also a licensed pilot and flies out of the A&E Flying Club in Hawthorne, CA.

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attorney division Boeing and its Woes

fix them before the aircraft was moved to the next workstation. Four critical missing bolts were not fitted. A wrongful death suit is proceeding in the Western district of Washington.

The 737 Max issues continue to plague Boeing. On 22 May 2026, the Fifth Circuit refused the victims families’ mandamus petition and denied a rehearing en banc with respect to the Non-Prosecution Agreement (NPA) the Department of Justice (DOJ) entered with Boeing in May 2025.

Under the NPA, the DOJ was obliged to seek dismissal of all criminal complaints against Boeing, those complaints being dismissed in November 2025, even though

Boeing’s issues did not end there. It currently awaits certification for the 737 Max 7 and 10 models and its much-heralded 777X. The 777X’s path to certification is quite incredible.

The long-awaited update to the innovative twinjet, which was the catalyst for the demise

of most 4-engine passenger types, was launched by Boeing in 2013, targeting an in-service date of 2020. It was to incorporate extensive use of carbon composites in the airframe and a new folding wing (to accommodate existing airport constraints without compromising in-flight performance) to enable double-digit percentage gains in efficiency and economy. The cabin was also to benefit from larger windows and wider seats.

the Court concluded that the NPA failed to secure adequate accountability. However, the Court noted that it lacked jurisdiction to refuse dismissal. The US Supreme Court is now the only remaining option for the victims’ families.

Boeing also faces litigation in the Alaska Airlines Flight 1282 door plug incident.

It emerged that Boeing workers spotted defective parts at the factory but failed to

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attorney division

The construction process was also to be ground-breaking, using robots to automate much of the fuselage construction. However, the robots were not up to the job and the engineers they were intended to replace spent much of their time fixing them until Boeing finally abandoned this automation.

Boeing’s issues with the Max have certainly not helped its cause with the FAA. Nonetheless, Boeing expects almost all certification to be completed this year, with Extended Twin Operations (ETOPS) clearance next year. All these delays are costing Boeing dearly. It has taken a $15 billion charge in its accounts, with sizeable payments to their customers for these delays.

The silver lining is that those customers are still very keen to have the aircraft.

The first prototype rolled out in November 2019, well behind schedule. A pressurisation test on the fuselage carried out under FAA oversight caused a rupture, leading the FAA to double down on the effectiveness of the new design and materials. Certification was put back, again. GE, which is the exclusive engine manufacturer for the 777X, disclosed durability issues with its GE9X engine leading to further certification delays.

Other issues also arose during flight testing, leading to the prototypes being grounded for five months.

On the corporate side, Boeing faces a securities class action with a class of Boeing stock and option purchasers now being certified. Boeing was partially successful in obtaining dismissal of the parallel shareholder suit due to a failure to adequately plead knowledge against certain executives to the standard required under the Private Securities Litigation Reform Act (PSLRA).

The continuing delays and necessary fixes created another headache for Boeing. Thirty early-build airframes no longer meet Boeing’s new standards and will need to be retrofitted when possible. The focus is on the new builds and delivery to launch customer, Lufthansa.

Boeing is long overdue good news. Perhaps full certification of the Max models and the 777X, which could happen this year and next, may well provide it.

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attorney division And briefly:

the conflict. Routes now track north and south of the Gulf countries Iran and Iraq, increasing flight times and fuel burn. The conflict spurred a rise in the oil price and airlines that had not hedged their fuel position paid the price. Spirit is perhaps the most high-profile victim, its cash reserves being insufficient to weather the storm and insolvency followed.

T he House Judiciary Sub-committee in the Administrative State, Regulatory Reform and Anti-trust, is examining the state of competition in commercial aviation after almost 50 years of deregulation. Watch this space!

S taying with US airlines, both United and Delta are facing claims for mis-selling window seats priced as such. Both airlines have certain rows across their fleets where the seat row is mis-aligned with the window so no view is possible. United has failed in its attempt to have the cases against it dismissed. A full trial will follow. This ruling is expected to apply equally to Delta.

A final comment: we would love other contributors. If you would like to write an article for The Binder or have suggested topics, please get in touch by emailing info@aiaweb.org.

Mark Meyer is the Director of the AIA Attorney Division and a partner in the London Markets and International Insurance Team of HF. He is also a member of the Professional Liability Underwriters Society and ARIAS.

A irlines around the world have been changing flight plans to avoid overflying large swaths of the Middle East due to

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underwriter division

Navigating a Soft Market Meghan Griffin, assistant vice president, Sompo International, and Britt Kral, Assistant Vice President and General Aviation Manager, Beacon Aviation Insurance Services AIA Board of Directors, Underwriter Division

Currently the industry is well into a soft market with no major signs of it hardening anytime soon. At our first meeting as Director and Director-Elect, Britt Kral and I sat down to discuss how we both felt about the market and what advice we might offer to newer underwriters to navigate these dark trenches. Britt offers a look into long-term success with brokers while I offer a little bit of advice on how to stay Zen in a soft market. or the broadest terms, I make it a priority to explain the reasoning behind my decisions.

When agents understand that a position is based on sound underwriting judgment rather than arbitrary restrictions, it builds credibility. A respectful and transparent “no” often strengthens a relationship more than an unsustainable “yes.”

Solid Relationships Weather Soft Markets by britt kral The relationship between the underwriter and agent is the most important factor in achieving long-term success.

This becomes even more critical during a soft market when increased competition and declining rates create pressure on both sides of the transaction. Throughout these market cycles, I strive to maintain strong agency relationships while preserving underwriting integrity through transparency, consistency, and mutual respect.

meghan griffin

Consistency is equally important.

Agents value predictability and fairness, and I work hard to apply underwriting guidelines consistently across all accounts and agencies. Soft markets can create the temptation to make exceptions simply to Trust is the foundation of every retain business, but doing so successful partnership. Agents can ultimately damage both rely on me to provide timely britt kral profitability and everyone’s decisions, communicate clearly, trust. I want agents to know and maintain a consistent that my word is dependable and that my underwriting appetite. While I may not decisions are made with integrity, regardless always be able to offer the lowest premium of market conditions.

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underwriter division

Keeping Chill and Maintaining Zen by meghan griffin

Responsiveness also plays a significant role in maintaining strong relationships.

Agents operate in a fast-paced environment, and I recognize the importance of timely communication. Even when the outcome is unfavorable, providing a prompt response along with constructive feedback or alternative solutions demonstrates professionalism and respect for the agent’s efforts.

I joined the insurance world nine years into a soft market. In 2017, signs the market was shifting led to one of my most vivid memories to this day: standing in Paul Howard’s office while he informed me that we would be charging for coverages I had included my entire career. This was followed up by an explanation of why I was allowed to say “no” to a broker’s question that had previously always been a “yes.”

Beyond individual transactions, the strongest relationships are built through partnership. I strive to educate agents, share market insights, and serve as a trusted resource whenever possible. While accounts may be won or lost based on pricing, lasting relationships are built through collaboration, consistency, and mutual respect.

I feared losing risks for being too conservative, not ready to trust my brokers, and that the market was following suit. Years into my second round of soft markets, I’m proud of my book, and my attitude is more Zen than the last time. I won’t sugarcoat it: the process wasn’t developed in a day, and I am incredibly thankful for the mentors and brokers who helped me achieve this more “chill” mindset.

Ultimately, my goal is not to write every account. Instead, it is to build enduring partnerships founded on trust, consistency, and integrity. By protecting both the relationship and the portfolio, I help agents navigate soft markets successfully while positioning us both for long-term success.

If you started in a hard market and are feeling the heat of our current times, I present my five-point guide to becoming more Zen:

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underwriter division 1. Take a walk

5. Pick up a phone

My current office has a half-mile lake; my previous office had a pier leading to the East River. I recommend a great pair of headphones, a banger of a music album, and a 15-minute walk. You’ll be a lot less riled up by that blood-boiling email.

Some of us work better in email, some of us work better on the phone, and sometimes it is situational. As younger generations come in, the fear of the phone grows. Fight it; you may make a new friend.

Meghan Griffin works in underwriting at Sompo International. With over a decade of underwriting experience, Meghan specializes in general aviation.

She holds three professional designations: Associate in Reinsurance, Certified Aviation Insurance Professional (CAIP) Gold, and Chartered Property Casualty Underwriter (CPCU). Meghan serves as the Director of the AIA Underwriter Division.

Credit: Air Force or is it your ego?

2. Is itU.S. a mountain,

This remains my hardest lesson, and I bet it is yours as well. Everyone is being shopped, but it’s still easy to feel as though brokers are your enemies. Let go of your ego — I know every question makes you feel like you’re losing your account — pick your battles, and don’t hold it against the other person.

Britt Kral lives in Salt Lake City, Utah, with her husband, two sons, and their GSP, Frank. Her aviation insurance career began as an agent in Chicago and has grown into 14 years of underwriting experience. Outside of work, Britt is an avid mountaineer with 53+ summits and a passion for chasing bigger challenges, exploring new places, and embracing the next great adventure. Britt was elected at the 2026 AIA Conference as the Underwriter Division’s Director-Elect.

3. Don’t turn a paper cut into a federal case The email can wait until tomorrow if it is going to be rude, mean, or make you toss and turn all night.

4. Get creative Before throwing the lowest number and a profit commission on the account, talk it out and see if there’s something else you can offer your good insured. When the market hardens again (it will, some day) these alternative solutions become things that can be charged for or negotiated before increasing their premium; thus, trust with your broker and insured.

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education committee

What’s the Difference?

Aircraft Hull and Liability Coverages

Joe Williams, CAIP, Executive Vice President/ Managing Director, Marsh McLennan Agency SE, and Tom Murphy, CAIP, Assistant Vice President and Senior Underwriter, AXA XL AIA Education Committee and Course Instructors Welcome back to the third edition of “What’s the Difference?” We’re writing this article about a month after the AIA conference in Dallas, hoping everyone had a great time and returned home safely.

For this edition, we’ll be discussing the differences between a few common Aircraft Hull and Liability coverages, including how they are intended to work together.

for this article). Many would consider this the heart of the Aircraft Hull and Liability policy’s liability protection.

joe williams

Medical Expenses are intended to provide bodily injury coverage for passengers (again, a defined term) and can also include premises medical payments. This is generally a very small limit.

Voluntary Settlements (whether called GVS or PVS) What’s the difference between… are intended to provide bodily injury coverage to passengers Passenger Legal Liability as defined in the policy. This Medical Expenses is generally a limit somewhere tom murphy between Medical Expenses and Voluntary Settlements — the Aircraft Liability limit. This coverage often called Guest Voluntary Settlements reads a lot like an Accidental Death and (GVS) or Passenger Voluntary Settlements Dismemberment policy, if you compare them.

(PVS) If you’re a little confused so far, that’s why we’re writing this article. Let’s jump into the differences. But first, here is an example for reference: Williams & Murphy, LLC, operates a jet with an insurance policy containing limits equal to $100,000,000

Before we talk about the differences, let us briefly describe these three coverages.

Passenger Legal Liability is intended to provide bodily injury coverage to passengers (a defined term in every policy we reviewed

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education committee expenses incurred from injuries sustained.

In several of the policies we reviewed, the phrase “Regardless of liability…” is used.

This is what we generally refer to as the “No Fault” legal requirement. The phrase “…reasonable medical expenses…” also appeared often. Lastly, there are some stipulations for Medical Expenses including “…incurred within one year from the date of the injury…” and “…payments will not be made to anyone until all medical benefits available under a workers’ compensation or similar law have been exhausted.”

Aircraft Liability; $10,000 Medical Expenses; and $100,000 Passenger Voluntary Settlements per Passenger, per Occurrence as respects Non-Crew Passenger and Crew Member Passenger, and as respects Owned and Non-Owned Aircraft. We’ll ignore the Hull and War/Malicious Acts for this article.

Describing the Differences In the policies we reviewed, the phrase “Passenger Legal Liability” does not actually appear. However, “Bodily Injury,” a defined term in all the policies we reviewed, does appear many times. Passenger Legal Liability, as the legal liability part implies, is only for “legally obligated” bodily injury.

Another phrase in one of the policies is: “legally liable” to pay. This means that there must be a legal instrument requiring the insurance company to pay on behalf of the insured, like a lawsuit that is either won or lost or a settlement agreement.

Passenger Voluntary Settlements (GVS/ PVS), read like an AD&D policy inside the Aircraft Hull and Liability policy. The phrase “Regardless of legal liability…” , or similar, is often used and followed by “… and without admitting liability of any party…” It goes on to use several phrases in quotation marks, rather than emboldened, which is usually a sign that the coverage in question has its own definitions. “Settlement limit” is one of these definitions, as is “Totally Disabled,” “Loss,” “Body Part,” and “Permanent Total Disability.”

Medical Expense (a defined term in all policies we reviewed), however, is not required to be legally obligated. It is a payment and/or reimbursement for

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education committee

GVS/PVS must be requested by the Named Insured to be paid on behalf of the Named Insured; the insurance company cannot simply offer it. However, if it is offered, to be paid and accepted, a full release must be signed by the injured party or their estate.

One of the more interesting clauses of GVS/ PVS is that coverage must be accepted or rejected 120 days from the payment offer, or “… Coverage *** will not apply to or for the benefit of that passenger.”

If the injured passenger files a lawsuit claiming Williams & Murphy was negligent, the insurer’s obligation to pay for bodily injury damages will depend on legal liability. In this example, if found legally liable, Williams & Murphy’s Passenger Legal Liability coverage will pay for the damages up to the $100,000,000 Aircraft Liability policy limit. This could include compensation for pain, suffering, or legal damages awarded in court.

Differences in Practice

Willams & Murphy’s Medical Expenses coverage might immediately cover the passenger’s hospital bills, ambulance costs, or other expenses incurred. Medical Expenses are not dependent on legal liability, and our policy would pay/reimburse the passenger’s medical bills up to the $10,000 limit.

Imagine a scenario where a passenger onboard Williams & Murphy, LLC’s jet is involved in an incident that results in injuries.

Remember, policy limits are $100,000,000 Aircraft Liability limit, $10,000 Medical Expenses, and $100,000 Passenger Voluntary Settlements per Passenger.

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education committee Suppose Williams & Murphy would like to avoid drawn out legal proceedings and offer a GVS/PVS payment of $100,000. Instead of pursuing a lawsuit, the passenger might accept a settlement offer of $100,000 to resolve the claim quickly. They would sign a full release of all claims, and the insurer would then pay the agreed settlement amount without admitting liability.

As always, read your insurance policies and keep in mind that they can be tailored to each policyholder.

Each scenario and potential claim is unique.

Here we’ve highlighted how Williams & Murphy’s insurance policy could provide coverage. Liability for bodily injury could be covered under Passenger Legal Liability, providing protection if they are found legally responsible. The Medical Expenses coverage offers quick, no-fault reimbursement for the passenger’s immediate medical bills. Finally, the GVS/PVS coverage provides a way to settle claims swiftly, avoiding lengthy litigation, with the insurer paying out a preapproved amount upon request and proper documentation.

Joe Williams is an Aviation Insurance Broker and Managing Director of Aviation for Marsh McLennan Agency SE who formerly served as an aviation insurance underwriter at AIG and Starr. In addition to serving as the AIA Education Committee Chair, Joe co-teaches the AIA’s Core Principles and Introduction to Aviation Insurance courses. He is a former certified flight instructor as well as a corporate pilot.

Thank you for reading this edition of “What’s the Difference?” If you’d like to suggest a topic, have a question, or want to co-author a future edition, please reach out to the AIA Education Committee by emailing info@aiaweb.org.

Tom Murphy is a Senior Underwriter at AXA XL with over 20 years of aerospace insurance experience in underwriting, risk assessment, and broking. A certificated pilot and Certified Aviation Insurance Professional, he specializes in assessing aerospace risks and delivering tailored solutions. His passion for aviation began early, inspired by his family’s hot air balloon business.

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2026 aia conference

Cheers to 50 Years at AIA 2026 More than 630 attendees from all facets of the aviation insurance industry met in Dallas, Texas, for the 2026 AIA Annual Conference, held May 4–7. AIA 2026 kicked off with a windswept welcome reception, setting the tone for a memorable conference

featuring four days of networking, continuing legal and insurance education, and anniversary celebrations. Enjoy highlights from AIA 2026 in the following pages and visit the AIA website for the full photo gallery!

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2026 aia conference

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2026 conference aia conference recap

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2026 aia conference

congratulations Pinnacle Award Congratulations to Greg Sterling, who received this year’s AIA Pinnacle Award. The AIA Pinnacle Award is the most prestigious award given by the Aviation Insurance Association. See Greg’s award video here.

Pictured L–R: Greg Sterling and AIA President Ian Wrigglesworth

AIA Eagle Society Each year a select group of aviation insurance professionals are nominated and inducted into the AIA’s prestigious Eagle Society. Thank you for your continued service to the AIA and the aviation insurance industry.

Congratulations to this year’s class: Wes Collier, Edwin Marin, Chris Morin, Don Swaim, Andy Trundle, David Watts, and Lynn Weaver.

Pictured L–R: David Watts, Edwin Marin, AIA President Ian Wrigglesworth, Chris Morin, G. Don Swaim, and Wes Collier

Certified Aviation Insurance Professional (CAIP) Designation Congratulations to the eight AIA Members who achieved their CAIP designation this year: Melina R. Divelbiss, Rachel Woods Hamzic, Kaito “Conrad” Inoguchi, Sean Kyllonen, Denise C. Leskovsky, Rachel Lewis, Jordan Swank, and Joe Williams.

Additionally, congratulations to Meghan Griffin who achieved her CAIP Gold designation.

Pictured L–R: Joe Williams, Jordan Swank, AIA Education Committee Chair Britt Kral, Rachel Lewis, Denise C. Leskovsky, and Melina R. Divelbiss Pictured L–R: AIA Education Committee Chair Britt Kral and Meghan Griffin

Save the Date Mark your calendars to join us for the next AIA Annual Conference May 2–5, 2027 (Sunday–Wednesday) at The Broadmoor in Colorado Springs, Colorado.

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conference recap thank you to our sponsors

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2026 AIA PREMIER MEMBERS The Aviation Insurance Association would like to recognize the Premier Members of the organization as of March 25, 2026. Thank you for your support of the AIA! Lindsay Adkinson Sky Aviation Insurance Service Plant City, FL

Melanie Daglish ITIC London, United Kingdom

Philip Gingell Worldlink Holdings, LLC Chicago, IL

Zachary Ballard Salmon, Ricchezza, Singer & Turchi LLP Philadelphia, PA

John Darer 4structures.com, LLC Stamford, CT

Brett Godfrey Godfrey Law, P.C. Castle Pines, CO

Eric Barfield Gallagher Aerospace Wilmington, NC

Doug Davidson Davidson Solid Rock Insurance Clinton, AR

David Gray Applied Underwriters Aviation Marietta, GA

Richard Bayman MS Amlin London, United Kingdom

Michael Dery Alexander Holburn Beaudin + Lang LLP Vancouver, Canada

Tom Hauge Wings Insurance Eden Prairie, MN

James Bear MS Amlin London, United Kingdom Ryan Bolin Alliant Scottsdale, AZ Timothy Bonnell Jr. Aeris Insurance Solutions Overland Park, KS Scott Bradbury Atrium Underwriters Ltd London, United Kingdom Steve Bruneau Polaris Aero LLC Edgewater Park, NJ Jeffrey S. Bruno Global Aerospace Inc. Morris Plains, NJ Michael Chevrette Great American Insurance Company East Brunswick, NJ Charles Conour, Jr. Conour Insurance Inc. Vestavia Hills, AL

Barry Dowlen Acrisure Aerospace Kerrville, TX Joshua Down Atrium Underwriters Limited London, United Kingdom Candace Eichenberger Avinsure Agency, Inc. Powell, OH Crystal Eisman Great American Insurance Group Aviation Division Kansas City, KS Melissa Ems Melissa Ems Insurance Agency Inc. Saint Petersburg, FL Debi Fleischer Acrisure Aerospace Roanoke, TX Jim Gardner The James A Gardner Company Inc. Marietta, GA

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Tom Kaiser Aero Guard Aviation Insurance Lincoln, NE Sean Kallsen LLJohns Aviation Insurance Waterford Township, MI Scott Kennedy Parrish-O’Neill & Associates, Inc. Mount Vernon, OH Frank Kimmel Kimmel Aviation Insurance Agency, Inc. Greenwood, MS Camille Knight TITAN Aerospace Insurance, LLC ACworth, GA Christina Leitner Sompo International Zurich, Switzerland Denise Leskovsky Crest Insurance Group, LLC Tucson, AZ Pam Lipsey Lockton Companies Houston, TX

Ben Martin Norton White Lawyers Sydney, Australia

Paul Smith Howden Tiger London, United Kingdom

Craig Walker McLarens General Aviation Pleasant View, TN

Jarred McBride Sanders & Parks Phoenix, AZ

John Songin Worldlink Holdings, LLC Chicago, IL

David Watts Everest London, United Kingdom

Alexander Muszynski III Walker Revels Greninger PLLC Belle Isle, FL

Lorretta Steffeter All Access Aviation Markets, Inc. Chicago, IL

Kyle White Marsh McLennan Agency Overland Park, KS

Steve Neeley Aviation Insurance Managers, Inc. Uniontown, OH

Jeffrey Sutton London Aviation Underwriters, Inc. Federal Way, WA

David Norton Shackelford McKinley & Norton, LLP Dallas, TX

Lou Timpanaro Alliant Insurance Services, Inc. New York, NY

Joe Williams Marsh McLennan Agency SE / MMA Aviation Roswell, GA

Rob O’Neil Preferred Aviation Underwriters Duluth, GA

Tracy Toro Aon Manalapan, NJ

Shawn Rich Rich Aviation Services Fort Worth, TX

Robert Torricella Torricella Law, PLLC Miami, FL

Peter Rota Aviators Insurance Agency, Inc. Van Nuys, CA

John Travers Travers Aviation St. Louis, MO

Jerry Ruth CHUBB New Orleans, LA

Rick Turner Aerospace Risk Management Group Grand Ledge, MI

Tabatha Schneider Rosen & Schneider, LLC Portland, OR

Frank Turtola Global Aerospace, Inc. Morris Plains, NJ

Michael Schofield Clark Partington Pensacola, FL

Matt Twist Concirrus London, United Kingdom

Ian Shelley Higginobotham Fort Worth, TX

John Vratsinas Atlantic Specialty Risk Fort Lauderdale, FL

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Charlie Withers-Clarke Guy Carpenter and Co. Pembroke, Bermuda Ian Wrigglesworth Guy Carpenter & Company Ltd London, United Kingdom Jennifer Zak Shannon & Luchs Insurance Agency, Inc. Hagerstown, MD Robert Zavaglia, Jr. Freeman Mathis & Gary, LLP Denver, CO

safety report

How Aviation Organizations Can Support the Mental Health and Wellness of Their Workforce Mark Larsen, CAM, NBAA Director, Safety & Flight Operations

More than one in five adults will experience a mental health challenge in any given year, and roughly 50 percent of people will experience a mental health challenge in their lifetime.

Given these statistics, and the potential impact that a severe mental health disease state could have on the safety of an aviation operation, it’s incumbent on aviation organizations to proactively address this known issue.

Insurance organizations, which play an active role in the risk management strategies of aviation operators, maintenance and repair organizations, and contract professional communities, would be wise to consider how the entities they underwrite or serve are addressing this.

other high stress professions, allows a pilot experiencing a mental health challenge to connect with a fellow pilot who can actively listen to the concern, and point to resources that can help. Should it be apparent to the peer that the pilot is suffering from a more acute situation, professional mental health resources are made available to the pilot in need of that support.

These peer support programs were mandated for commercial carriers in Europe in 2021, including Part 135 equivalent charter operators. In the U.S., pilot unions began voluntarily creating in-house programs with support of their airline(s). The National Business Aviation Association (NBAA) set out to ensure a program tailored to the unique needs of smaller business aviation organizations was available. The association partnered with MedAire and its Talk to a Peer program in 2026 to ensure that business aviation professionals have access to these same mental health support services.

More than one in five adults will experience a mental health challenge in any given year...

Following the Germanwings crash in the Swiss Alps in 2015, the commercial aviation industry responded with the creation of peer support programs. This idea, already in use in schools and among

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safety report industry — e.g., maintenance, flight attendants, and schedulers/dispatchers — similarly desire access to these same resources.

Other organizations also offer peer support services to business and general aviation pilots too, including the U.S. Helicopter Safety Team for rotary-wing pilots, and LiftAffect for pilots at airlines and in business aviation organizations.

Speaking of the FAA’s medical certification requirements, industry leaders and the FAA have collaborated to address the concerns that pilots and air traffic controllers have regarding seeking mental health support. In 2023, the FAA chartered the Mental Health and Aviation Medical Clearances Aviation Rulemaking Committee (Mental Health ARC).

Among the Mental Health ARC’s recommendations was to encourage aviation organizations to implement peer support programs and adjust the disclosure requirements for talk therapy with counselors.

industry leaders and the FAA have collaborated to The aviation industry places address the concerns many demands on its personnel, who also experience that pilots and air life’s challenges as any adult traffic controllers does. Having ready access to healthy support outlets is key have regarding seeking to addressing these concerns mental health support. before they become more complicated with an increased potential to adversely affect safety.

It’s important to consider that while pilots have a medical certification requirement, and that fact lent itself to an initial peer support model, other professions within the

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safety report While pilots and air traffic controllers can get couples’ counseling or talk to an employee assistance program (EAP) without disclosing it to the FAA (with limited exceptions), individual counseling sessions are subject to disclosure. Peer support programs — because a pilot or controller is talking with a peer and not a mental health professional — similarly do not require disclosure to the FAA on a medical certification application.

review the severity of the condition and the applicant’s ability to self-assess their fitness for duty and not rely on the presence of counseling alone as an indicator of risk.

NBAA anticipates this will result in more pilots leaving their AME’s office with a medical certificate in hand.

Industry organizations — including insurance providers, aviation employers, their employees, and regulators all working together to provide appropriate resources

Recently, the FAA amended its policies around talk therapy. Given the wide variety of FAA designee aviation medical examiner (AME) medical backgrounds, some AMEs were uncomfortable issuing a medical certificate when mental health treatments or conditions were disclosed on the application and would defer all those cases to the FAA for decision. The new guidance encourages pilots to seek peer support or counseling early when a mental health concern arises.

Further, it clarifies that AMEs are to

and policies — will make a difference to help pilots and controllers timely address a mental health concern, helping them maintain their medical certification, their livelihood, and most importantly their mental health.

Mark E. Larsen, CAM, is NBAA’s Director of Safety & Flight Operations. A commercial pilot and flight instructor, he actively champions aviation safety, medical and mental health initiatives. He represented NBAA on the FAA’s Mental Health and Aviation Medical Clearances Aviation Rulemaking Committee.

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Board of Directors Director, Underwriter Division Meghan Griffin

President ian Wrigglesworth Guy Carpenter - A Marsh Business London, United Kingdom

Sompo International Alpharetta, GA

VICE PRESIDENT Luke Uithoven

DIRECTOR-ELECT, UNDERWRITER DIVISION Britt Kral

Kimmel Aviation Insurance Agency, Inc. Greenwood, MS

Beacon Aviation Salt Lake City, UT

Treasurer Nicole Wolfe Stout

International Director nick redgrove

Strawinski & Stout, P.C. Atlanta, GA

Price Forbes London, United Kingdom

Secretary David Hampson

Director-at-Large Kristen harris

Schrager Hampson Aviation Insurance Agency Bedford, MA

BWI Aviation Insurance Agency, Inc. Warrenton, NC

DIRECTOR, AGENT / BROKER DIVISION Rachel Lewis

Director-at-Large Michael McGrory

Schrager Hampson Aviation Insurance Agency Bedford, MA

Amundsen Davis, LLC Chicago, IL

Director, Attorney Division Mark Meyer

International Director-at-Large Paul O’Ryan

HF London, United Kingdom

Starr Aviation Toronto, Canada

Director-elect, Attorney Division Jennifer Fleming Perdigao

AIA General Counsel Bob Williams

Tressler LLP El Segundo, CA

Victor Rane PLC Pittsburgh, PA

DIRECTOR, CLAIMS DIVISION Stephanie Short

Executive Director Mary Gratzer

Great American Insurance Company Bellingham, WA

Aviation Insurance Association Lexington, KY

Director, Reinsurance Division Raffaella Basile Swiss Reinsurance Company Ltd Zurich, Switzerland

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Aviation insurance glossary

Glossary of Common Aviation and Insurance Acronyms AIA — Aviation Insurance Association

GHSP — Ground Handling Service Providers

AOPA — Aircraft Owners and Pilots Association

HUD — Heads Up Display

ASAP — Aviation Safety Action Program (FAA)

IATA — International Air Transport Association

ASIAS — Aviation Safety Information Analysis and Sharing system (FAA)

IBAC — International Business Aviation Council

ASRS — Aviation Safety Reporting System (FAA)

ICAO — International Civil Aviation Organization

CASA — Civil Aviation Safety Authority (Australia)

IFR — Instrument Flight Rules IMC — Instrument Meteorological Conditions

CAAC — Civil Aviation Administration of China

IS-BAO — International Standard for Business Aircraft Operations

COPA — Cirrus Owners and Pilots Association

IS-BAH — International Standard for Business Aircraft Handling

DPE — Designated Pilot Examiner EAA — Experimental Aircraft Association

MRO — Maintenance Repair Organization

EASA — European Union Aviation Safety Agency

NBAA — National Business Aviation Association

E6B — A type of manual or electronic flight computer

NTSB — National Transportation Safety Board (U.S.)

ESG — Environmental, Social, and Governance

P&C — Property and Casualty

EVTOL — Electric Vertical Takeoff and Landing Vehicle

SMS — Safety Management System UAM — Urban Air Mobility

FAA — Federal Aviation Administration (U.S.)

UAV — Unmanned Aerial Vehicle (also known as a drone)

FBO — Fixed base operator (service station for aircraft and pilots)

VFR — Visual Flight Rules

FDM/FOQA — Flight Data Monitoring / Flight Operations Quality Assurance

WAI — Women in Aviation International

VR — Virtual Reality

GA — General Aviation

This is an abridged list of aviation insurance terms that appear in current and previous editions of the AIA’s The Binder.

GAMA — General Aviation Manufacturers Association

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