The Evolution Of Aircraft Grounding Liability – Part 1

Aircraft grounding is a complex process with significant financial ramifications and insurance implications. How has the language evolved and what coverage does the current language provide?

Grounding Liability

The mid-air blow out of a plug door on a Boeing 737 Max 9 aircraft during an Alaska Airlines flight between Oregon and California in early 2024, has again put the issue of grounding aviation fleets under scrutiny. According to the US Federal Aviation Authority (FAA)¹, more than 170 aircraft were grounded worldwide for around three weeks, which could have ramifications right across the supply chain² and create the potential for significant and complex claims under Grounding Liability Insurance.