Avionics Insurance Program Launched

Associated Aviation Underwriters and Specialty Underwriters (SU) have entered a joint agreement to offer AV-TEC, an insurance program "designed to control the expense of avionics maintenance." The program will be available through AAU of Short Hills, N.J. (Booth 6517).

"Virtually every avionics unit, and similar types of equipment, from air data computers to radios to weather radar," are covered, AAU said. When an avionics unit needs repairs, the policyholder uses the service provider of his choice.

"Once repair is completed, a copy of the service report and invoice is sent to Specialty Underwriters, which then reimburses the operator or pays the service provider direct, whichever is preferred," AAU said.

Promoters say the AV-TEC policy covers all labor costs, including: overtime; parts; preventative maintenance, including airworthiness directives, or ADs; repair cost caused by power surges and human error; rental of substitute equipment; reimbursement for in-house repairs; and a "cash-out" option for repairs. There are no deductibles.

The program's launch customer is Johnson Controls, a Milwaukee-based company that operates a Challenger, two Hawker 800s and a Dornier 328. The company has been insured by AAU since the mid-1980s and, more recently by SU.

By Gordon A. Gilbert