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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 and their related activities.

We are delighted to have you visit us.  We are member-owned and, as of April 1, 2015, AAIRRG is owned and controlled by 223 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 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.

 

 

FAA proposes $430,000 fine against Beechcraft
04-16-2015: The U.S. Federal Aviation Administration has proposed a $430,000 civil penalty against Beechcraft Corp. in Wichita for what it says was a failure to maintain quality control in the production process.
FAA Calls Out 'Systemic' Hazard at United
04-10-2015: Federal aviation inspectors stepped up oversight of United Continental Holdings Inc. two months ago, citing risks from repeated violations of mandatory pilot qualification and scheduling requirements.
FAA Once Again Fines Southwest Airlines For Maintenance Related Violations
04-01-2015: For the second time in the last 12 months, Southwest Airlines is facing another fine from the Federal Aviation Administration because of safety issues; this time totaling $328,550.
FAA gives Amazon go-ahead on drone testing
03-19-2015: Amazon finally got the federal green light today to send its drones into the skies, but only as a test.
Why Proposed Pilots Bill Of Rights Could Affect Air Safety
03-11-2015: The introduction in the House and Senate of proposed legislation — known in the aviation community as PBOR 2 or Pilots Bill of Rights 2 — has received huge support among private pilots.
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02-23-2015: A UK coroner has submitted a report about toxic fumes in plane cabins to the Civil Aviation Authority (CAA) following an investigation into the death of British Airways pilot Richard Westgate, age 43. The report said people regularly exposed to fumes circulating in planes faced "consequential damage to their health.
FAA orders inspections of about 300 Enstrom helicopters following Colorado crash that killed 2
02-13-2015: The Federal Aviation Administration has grounded more than 300 Enstrom helicopters nationwide until they can be inspected for possible cracks like the one that may have caused a crash last month that killed two people in Colorado.
United faces $1.3M FAA fine for in-flight hazmat violations
01-28-2015: United Airlines is facing Federal Aviation Administration fines of $1.3 million stemming from at least 120 alleged violations involving hazardous material cargo on passenger flights, including several at Denver International Airport.
Drone Operator Settles Case With FAA for $1100 Fine
01-22-2015: An attorney for a drone operator who challenged the government's ban of commercial drone flights says his client has settled the case for an $1,100 fine.
Industry Balks at Requiring FAA OK To Surrender Repair Station Certificate
01-14-2015: A coalition of aviation trade associations petitioned the FAA on Friday to restore the right for a repair station to surrender its certificate voluntarily. In its new repair station rule, which became effective last November, the FAA took the unprecedented step of subjecting surrendered certificates to "acceptance for cancellation".
Industry to FAA: Repair Stations Know When to Fold 'Em
01-12-2015: On January 9, a coalition of aviation trade associations petitioned the Federal Aviation Administration (FAA) to restore the right to voluntarily surrender a repair station certificate.
FAA to Require Airlines Use Data to Prevent Accidents
01-07-2015: New federal rules announced Wednesday will require airlines to collect and analyze safety data in an effort to spot troubling trends and help prevent accidents.
When does a washer cost $317,500? When It is not installed...
01-05-2015: FAA is proposing a $317,500 civil penalty against United Air Lines, for allegedly operating an aircraft that was not in compliance with Federal Aviation Regulations.

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.