Aeronautical Repair Station Association (ARSA) and Polaris Enterprise Group have launched a new insurance option for the aviation maintenance industry.
Aviation Alliance Insurance Risk Retention Group (AAIRRG), jointly established by ARSA and Polaris will provide products liability insurance exclusively to repair stations which are ARSA members. AAIRRG has received the insurance license from the State of Montana.
AAIRRG differs from an ordinary insurance company in that it functions as a risk retention group (RRG). An RRG consists of independent companies that assemble to create and fund a licensed captive insurance company, which operates under the Federal Liability Risk Retention Act of 1981 and is able to write common commercial liability insurance for its members, according to ARSA.
Each insured member will be an owner of the RRG and will receive shares in the RRG and will be eligible for financial distributions from potential underwriting profits.
Bill Perdue, president of AAIRRG, said: AAIRRG offers the chance for a repair station to take greater control of its insurance costs. For the first time, repair stations will have insurance designed specifically for them which takes into account our industry’s outstanding safety record. We’re no longer going to be lumped in with the rest of the aviation industry.
Sarah MacLeod, executive director of ARSA, said: This is excellent news for our members. This unique partnership with AAIRRG represents an opportunity for our members to lower their operating costs through control and ownership of their liability insurance.
Cameron Crebs, president of Polaris Enterprise Group, said: Getting AAIRRG off the ground has been a challenging and rewarding experience. In this time of economic difficulty I look forward seeing AAIRRG provide ARSA members a valuable and rewarding insurance alternative.