AAIRRG | Aviation Alliance Insurance Risk Retention Group, Inc.


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 and their related activities.

We are delighted to have you visit us.  We are member-owned and, as of November 1, 2015, AAIRRG is owned and controlled by 230 of the independent repair stations in 46 states.  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 any 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 $95.2 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
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.



FAA to drone owners: Get ready to register to fly
11-23-2015: While an actual rule could be months away, drones weighing about 9 ounces or more will apparently need to be registered with the Federal Aviation Administration going forward.
Contract Aviation Maintenance: Safer, More Efficient
11-11-2015: On November 10, ARSA Executive Vice President Christian A. Klein issued this response to James B. Steele's "Disturbing Truth About How Airplanes Are Maintained Today," published in the December issue of Vanity Fair magazine...
FAA to improve helicopter safety, prevent deadly fires
11-10-2015: The Federal Aviation Administration plans to take a major step toward preventing people from being burned to death in helicopter crashes...
The Disturbing Truth About How Airplanes Are Maintained Today
11-09-2015: In the last decade, most of the big U.S. airlines have shifted major maintenance work to places like El Salvador, Mexico, and China, where few mechanics are FAA certified and inspections have no teeth.
Unsecured jet bolts under heightened FAA scrutiny at Allegiant
10-28-2015: When two Allegiant Airlines pilots couldn't control their plane and scrubbed a takeoff from Las Vegas in August, the carrier discovered that a critical piece of equipment in the tail had come loose.
Virgin Atlantic jet was forced into emergency landing at Gatwick because engineers installed a part of the landing gear UPSIDE DOWN
10-23-2015: The lives of 447 passengers were put at risk when a stricken Virgin Atlantic jet was forced to make a dramatic emergency landing because engineers installed a part upside down, investigators found.
FAA to airline passengers: Leave spare batteries at home
10-13-2015: The Federal Aviation Administration is encouraging airline passengers to leave their spare lithium batteries at home when they pack for flights.
US to back ban on lithium battery shipments on passenger planes, citing fire, explosion danger
10-08-2015: The risk of unstoppable fires is prompting U.S. officials to back a proposed international ban on rechargeable lithium battery shipments as cargo on passenger airlines.
FAA To Investigate Cracked Windshield Incident
10-07-2015: Federal Aviation officials said a report will be filed to them after a cracked windshield forced a local flight to return.
How rare are pilot deaths on commercial flights?
10-05-2015: The death of a pilot on an American Airlines flight bound for Boston Monday was the eighth pilot death during a commercial flight since 1994, the Federal Aviation Administration said.  The number included both commercial passenger and cargo pilots and commercial charter pilots.
Lithium Battery Shipping Rules Could Get Safety Overhaul
10-02-2015: International Civil Aviation Organization (ICAO) member nations and airline safety advocates will attempt this month to legislate a safer way to transport billions of lithium-chemistry batteries by air every year.
With FAA's New Kid Seat Safety Rule, Will Kids Fly Safer?
09-30-2015:  Just when you think nothing the government does could surprise you, along comes the FAA's new child safety seat rule and, yes, leaves me surprised.
Inhofe Pilots' Rights Bill Gains Momentum
09-30-2015: General aviation advocates are encouraged that Sen. James Inhofe (R-OK) has secured a more than filibuster-proof 67 co-sponsors for the Pilots Bill of Rights 2 (PBOR 2) bill, clearing the way to move forward on the measure. Inhofe, who told an audience at EAA in July that his goal was to reach 60 co-sponsors on the bill, late last week appealed to his colleagues in the Senate to enable consideration of the legislation "in the next very short period of time."
An Overview of MAG, Change 5
09-28-2015: On September 9, the FAA and EASA signed change 5 to the Maintenance Annex Guidance (MAG). Repair stations must ensure compliance with revisions by December 8, 2015, unless a later date is agreed to by the authorities.
Lawsuit: Plane toilet cleaner poisons consumer drinking water
09-25-2015: Five American Airlines workers have accused the airline of using watercooler jugs to carry chemicals aboard planes to decontaminate lavatories -- and then returning the jugs to commercial circulation to be refilled with drinking water and redistributed.
FAA Provides Incomplete Clarification on Return to Service
09-21-2015: The FAA Chief Counsel's clarification of its letter to ARSA is incomplete—as the association's original letter attempted to delineate, there will be more than one person involved in accomplishing work for an air carrier.
American stops flights at major airports, problems soon resolved
09-17-2015: American Airlines says it has fixed the connectivity issue that stopped flights heading to and from Dallas, Chicago and Miami.
FAA controllers reveal flaw that could cause collisions
09-16-2015: The government's own watchdog agency is calling for Congress and the White House to make the skies safer.
FAA Affirms Repair Station Personhood
09-15-2015: On Sept. 11, the FAA issued a legal interpretation in response to a request for clarification whether a part 145-certificated repair station may prepare an airworthiness release on behalf of an air carrier for work it performed on an aircraft.
ARSA Works: FAA Affirms Part Recovery Rights
08-25-2015: On August 25, the FAA affirmed ARSA's contention that a repair station's rating allows it to make "continue-in-service" determinations on internal or attached articles.

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.