What is Industrial Aid Reinsurance?
Industrial Aid reinsurance is a term normally used to describe facultative reinsurance coverage protecting insurance policies issued to businesses that have company owned, operated or leased aircraft and who wish to insure employees who travel on these conveyances.
The original policies insured can be workers compensation policies or life and/or personal accident policies. In addition, if an insurer has many exposures of this nature treaty agreements can also be put into place.
Often, these types of conveyance exposures are excluded from an insurer's workers compensation treaty or from the original workers compensation policy. This leads to the need to cover these risks facultatively with Industrial Aid Reinsurance.
The reinsurance covers workers compensation benefits for one or more lives on a company owned, operated or leased aircraft, vehicles, and/or vessels. Sutton Reinsurance will normally reinsure these risks on an excess basis with a minimum deductible of $100,000 and a "Maximum Any One Life" (MAOL) of $1M.
For an example of the type of information that is normally required to quote this type of risk please see below.
Name of insurance company to be reinsured.
Name, brief description of business, and location of company insured under original policy.
Proposed effective date (generally reinsurance is offered for a maximum period of 12 months).
Desired Attachment Point (deductible) and limit of reinsurance liability.
Information regarding the aircraft, vehicle(s), and/or vessel(s) to be covered.
Statements as to the usage of the conveyance. Is it used for passenger transport only, or other purposes (please describe)?
Estimated Annual Flight Hours (each aircraft), or Annual miles traveled (each vehicle/vessel).
Estimated Average Passenger Load, typically the number of seats.
Please prove information on the Pilots' Classification/Qualifications.
Information regarding insureds occupation and any physical hazards anticipated while traveling
If you have any questions about this type of coverage or other A&H reinsurance exposure concerns we would be pleased to hear from you. For further information please contact David Silva at 416.307.5620.