covered and uncovered losses Boeing is facing

[Frank Thomas]

Does anyone know the covered and uncovered losses Boeing is facing? Two Boeing 737 Max 8 planes crashed on takeoff. Now all planes are grounded. Will business interuption insurance cover the losses? What's the gross loss Boeing is faced with? How much will be covered by insurance? If modifications are made to the plane's anti-crash system, does this results in a defacto charge of guilt against Boeing for putting out defective airplanes? Is it possible the insurers and re-insurers will balk at paying Boeing's claims due to defective plane systems? And if the insurers pay business interuption claims from the airlines, how probable is it the insurers will turn out and ask for reimbursement from Boeing? Any insights appreciated. Thanks

 

[VolAgent]

It sounds like you are wanting to publish an article and want us to write it for you.

Considering the size of Boeing, it is likely most of the insurance is through captives with reinsurance as needed. Most of these questions will depend upon the exact wording of the policies.

 

[Frank Thomas]

VolAgent, you're close. I'm in a debate with a so-called re-insurance guru on seekingalpha.com. I'm trying to see if anyone has insights on Boeing's coverage. Thanks for taking a shot at it.

 

[VolAgent]

Gotcha.

Adjusterjack is probably the best qualified to answer some of these questions, but as far as I can tell he never touched policies like this. Also, good chance some or all of Boeing's policies are manuscript and custom. Finally, some of your questions are more legal than insurance.

We can speculate, but without seeing the actual policies it is just guessing, and most uneducated.

Perhaps someone else will come along and prove me wrong with better knowledge. All that said, I'm sure Boeing will be just fine.

 

[BADTROUT]

@adjusterjack is definately one of your go to peeps. So much going on here from business income, contingent BI, products... I dunno even where to start on something of this scale without the contract at hand. That said, like @VolAgent says, Boeing has a team of attorneys talking to a carriers attorneys and reinsurance all of which keeping their insurance people in line. This MUST have been in the what if category when writng the contract and although they'll take a loss, they should be covered at the end of the day.