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made by any person or persons on board the aircraft acting without the consent of the Insured.
Many people don’t feel they have a real exposure to a situation that would be covered by this endorsement. While rare, there have been instances that pertain to segment “e.” In the early 2000s there was a community bank that had a lien on a Learjet that was seized while in South America. The bank did not require the borrower to have war hull coverage. This resulted in lawsuits between the borrower and the bank. Eventually the bank was forced to make a significant write-off and a settlement with the borrower that was not covered by insurance. Another example occurred in 2008, when a Hawker 4000 that was delivered was seized by the U.S. government. For a brief period of time, the insurance carrier was preparing for a potential $21 million loss. Fortunately for the insurance carrier, when the aircraft owner was able to resolve the misunderstanding with the government, the aircraft was returned and the claim was dropped. Both scenarios could have been an opportunity for the insurance companies to pay out under the war hull endorsement.
It is important to understand the war hull coverage can be triggered anywhere in the world, including the United States. If you review your policy and read through the
war exclusions and write backs, you may have questions around “what ifs.” What if the war in Ukraine grows to include the United Kingdom, United States of America, France and/or the People’s Republic of China? What if there is a detonation of “any weapon of war employing atomic or nuclear fission”? Either of these two events will once again have further effect on what is and isn’t covered under your policy.
The following is a policy example of additional wording you may come across where the insurance company will pullback or eliminate the coverage within the “war hull” endorsement:
1. Amendment of Terms
The Company may give notice effective on the expiry of seven days from midnight G.M.T. on the day on which notice is issued, to review the rate of premium and/or geographical limits.
2. Suspension by Notice
a. This insurance may be suspended by the Company or the Insured giving notice not less than seven days prior to the end of each period of three months from inception. PROVIDED THAT if the aircraft is in the air when such outbreak of war occurs then this in- surance, subject to its terms and conditions and
MAY 2022
KING AIR MAGAZINE • 13