HYPOTHETICAL EXAMPLE
An operational scenario
A customer seeks the cost to redo maintenance, repair resulting aircraft damage and compensate for unavailable charter days. These demands can raise different insurance issues.
Illustrative example only; this is not a Montridge client or reported claim.
The insurance distinction
The defective work itself, resulting damage and economic loss may be treated differently. Products/completed operations and hangarkeepers do not automatically address every warranty or indemnity an MRO signs.
What to examine
Identify work performed, subcontractor roles, return-to-service records and any agreed limitation of liability. Preserve work orders and parts records. Ask counsel to address the contract’s legal effect and the broker to map the relevant policy sections.
Evidence to gather
- Signed work orders and standard terms
- Parts and maintenance records
- Subcontractor agreements
- Complete liability forms and endorsements
Questions for your review
- Which costs concern correction versus resulting damage?
- Has the business assumed another party’s liability?
- What records establish when custody and work ended?
References and review status
- FAA repair station operators Part 145
Certification and approved functions, not insurance - USAIG airport liability coverage areas
Coverage differentiation only
References support the indicated background topic. Review questions are educational analysis; no specific policy specimen has been supplied. Source checks: November 12, 2026.