AAIRRG | Aviation Alliance Insurance Risk Retention Group, Inc.

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Take Control of Your Aircraft Product Liability Insurance—and Save up to 35%

Welcome to AAIRRG. The only insurance company that exclusively writes aircraft product insurance for certified Part 145 repair stations. We are delighted to have you visit us.

We are member-owned and, as of September 1, 2014, AAIRRG is owned and controlled by
210 of the independent repair stations in the U.S.  Some are leaders in our industry.

Believe me, few of us wanted to own an insurance company. But because of the outrageous prices we were paying for aircraft products liability insurance (products coverage), our hand was forced.

I'll tell you how we did it in a moment. But first, let me give you the bottom line of what it means for you.

  • You should save (some up to 35% or more) on your company's liability insurance.
  • If you're insured by AAIRRG, you'll own a piece of the company and share in the profits.
  • You'll have access to a viable insurance option for the foreseeable future.

I know you'll have questions. So take a few minutes to read on, and then if you feel that AAIRRG might be a good fit for your repair station, you can request a free pricing proposal.

An Eye-Opening Analysis

In 2004, a core group of Aeronautical Repair Station Association (ARSA) members agreed to contribute time and money to test whether there might be a better alternative to the costly insurance options available at the time.

These members launched a feasibility study, examining 18 years of NTSB data. The study found that only 1.3% percent of U.S. aircraft crashes resulting in bodily injury or third-party property damage were a result of maintenance.  Only 1.3%!

With this information in hand, the group approached reinsurers to try to find support for the idea of a more affordable, exclusive aviation repair station insurance option.

The Problem: We Were Unfairly Lumped With Higher-Risk Ventures

Reinsurers were not unwelcoming, but there was a problem: they were unable to address specific losses surrounding repair stations because of their categorization of us as a miscellaneous class of business.

Who else is included in this category?  Air shows, speed events, medical air evacuation, aerial construction, firefighting, crop dusting, flight training and other higher-risk ventures.  Our research showed that repair stations were (and many still are) being forced to pay higher premiums to subsidize these high-risk businesses in aviation insurance markets. We needed a better option.

A Better Alternative

We spent six years putting AAIRRG together, isolating it from other aviation insurance markets so that we could offer better rates. In June 2010, we received our certificate of authority, authorizing us as a licensed insurance company.  Now, in our fifth year of operation, we've become a substantial presence in the aviation marketplace:

  • We're saving repair stations (up to 35% or more)over what they were paying.
  • We are providing good small shops who could not previously afford Aviation Products and Completed Operations coverage an opportunity to have coverage at a fair cost compared to the alternatives.
  • AAIRRG carries reinsurance with a net worth of $88.1 billion with substantial "A" rated reinsurers to augment its balance sheet.

AAIRRG has standards for eligibility so not just any shop can qualify. Over 41% of the Part 145 market will never hear from us due to other activities they are engage in, and for the remainder, our initial process is rigorous to help insure the financial safety of the group as a whole. Subsequently, for those who qualify, we offer a fair price for an exceptional insurance option.

Any Profits Belong to Us!

If you're insured by AAIRRG, you will own a piece of the company. And while future dividends cannot be guaranteed, let me share the following fact with you:

For the past 30 years, the entire aviation line of business in the U.S. has consistently been the first or second most profitable line of liability insurance, producing a better than 50% pretax profit each year!

Imagine not only saving on your insurance, but also profiting from that savings!  No other aviation insurer is paying a dividend to its policyholders.  But, as an AAIRRG owner/insured, future profits will come back to you.

I think you'll agree that this is an exciting and sensible option. It's worth taking a few minutes to explore our website to learn more.  Then, you can request a quick, easy and free pricing proposal to see just how much your shop can save.

We look forward to welcoming you into the fast-growing AAIRRG family.

Bill Perdue
Warmly,
Bill Perdue (signature)
Bill Perdue, President

P.S. If you have questions and would like to talk this over with a real person, you can call Rick Crebs, our lead underwriter, at 707-963-2400 right now.

 

 

Aviation Group Questions FAA Repair Station Rule
08-25-2014: Not everyone is convinced the FAA's recently issued final Part 145 rule, which governs maintenance of U.S.-registered aircraft, aligns with the intent of the original notice of proposed rulemaking (NPRM).
FAA: Lithium Batteries Pose More Danger Than Thought
08-14-2014: New tests conducted by the Federal Aviation Administration suggest that lithium batteries pose more dangers to planes than previously thought.
ARSA Reviewing Amended Repair Station Regulations
08-13-2014: The FAA has issued amended repair station regulations that allow the agency to deny an application for a new repair station certificate if the applicant or certain associated key individuals had materially contributed to the circumstances that caused a previous repair station certificate revocation action.
FAA proposes S-92 oil pump failure prevention mandate
07-30-2014: The US Federal Aviation Administration has proposed to mandate a series of actions already recommended by Sikorsky aimed at preventing a main gearbox oil pump failure on the airframer's S-92 helicopter.
ARSA: FAA Agrees: Line Maintenance can be Major
07-29-2014: In a quick turnaround, the Aircraft Maintenance Division responded within two days to ARSA's question about airframe-rated repair stations with line maintenance authorization performing major repairs and alterations. The agency agreed with the association's interpretation that the CFR's definition of line maintenance does not imply a prohibition against non-specified activities.
FAA proposes $12 million fine against Southwest over repairs
07-28-2014: Southwest Airlines Co. may have to pay a $12 million penalty to the U.S. government for operating "numerous flights" in 2009 after being notified that repairs to its airplanes didn't live up to federal regulations.
Crashes Push Up Airline Insurance Costs
07-28-2014: The airline industry, under pressure from reduced margins and higher fuel costs, now faces steep rises in insurance premiums.
Trade Associations Weigh in on Foreign Mx Drug Testing
07-23-2014: A coalition of aviation trade associations spoke out on behalf of the international maintenance, repair and overhaul market.
IG Concerned over FAA's Growing Backlog
07-04-2014:  The FAA's Flight Standards District Offices (FSDOs) have a backlog of applications for certificates that concerns the Department of Transportation Inspector General's Office.

Older News Articles & Press Releases

 

 

The entire process of getting our insurance done with AAIRRG has been a very efficient and pleasant experience, thanks to excellent support and guidance from Nina Baron and Rick Crebs.
Govind Jawalkar, President
VHL Aircraft, Inc.
 
Received everything just fine.  I am really impressed with the service.
Ted Dunbar
Castleberry Instruments & Avionics
 
Thank you so much for the prompt service.  It sure makes it easy for me to recommend your company to others in our industry.
Bill Walford
Cross-Check Aviation
 
Read all of our recent testimonials

 

 

 

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Notice: AAIRRG is a licensed insurance company in the State of Montana. AAIRRG operates in 46 states under the authority of a Federal Law which requires registration with each state in which it wishes to operate. You can ascertain your state's status by visiting www.aairrg.com/states. If you should find that your state is not included, AAIRRG will register upon your request to become an insured. This offer is void in any state or jurisdiction in which it would violate their rules or regulations.