Description

Hull war and allied perils risk policies offer coverage for many but not all claims arising from war, invasion, acts of foreign enemies, hostilities (whether war be declared or not), confiscation, nationalization, seizure, restraint, detention, appropriation, and requisition for title or use by or under the order of any government. Until the last few years, actual losses from and litigation over coverage of claims from these risks were limited. Then, on June 11, 2025, an English court issued a mammoth ruling in the Russian aviation insurance litigation that clarified fundamental issues about coverage and paved the way for recovery up to $4.5 billion for aircraft stranded in Russia after Russia invaded Ukraine in 2022.

Airlines and aviation companies can no longer downplay the increasing likelihood of claims and losses from political violence and international confiscation. Insurers rank these types of losses in the top five areas of concern. There is no shortage of reasons for concern: the war in Ukraine, civil wars in Myanmar and Sudan, Israel’s conflicts against Hamas in Gaza and Hezbollah in Lebanon, U.S. and Israeli action against Iran, China's claim to Taiwan and territories in the South China Sea, plus numerous "lone wolf” and stateless terror organizations.

Waiting until after aircraft are lost is not the optimal time to start figuring out what the hull war and allied perils policy covers or excludes, whether coverage is likely to exist, and what claims and defenses will get traction. Coverage issues are difficult. Policy language may be ambiguous. The facts and situations in which losses occur are volatile and accurate information scarce. For many different reasons, perpetrators of acts triggering coverage may well attempt to disguise or mischaracterize their actions.

Listen as this expert panel offers guidance on this increasingly important type of coverage and the groundbreaking new decisions interpreting fundamental policy language.