Signature requires, then withdraws, agreement

AINonline
October 8, 2007, 6:16 AM

On September 24, Signature Flight Support began requiring customers at its worldwide chain of 46 FBOs to sign an “indemnification agreement for acts of war and terrorism.” The “hold harmless” agreement was the result of a decision by insurers to cancel Signature’s extended coverage endorsement for war risk liability insurance, effective 8 p.m. that day. The cancellation was one of many invoked by insurers in the wake of the September 11 terrorist attacks. A spokesman for the Piedmont Hawthorne chain said it also considered a similar move that would have covered its 35 North American FBOs.
After angry Signature customers protested and NBAA advised its members to “contact their legal counsel before signing such a release,” a day later, September 25, Signature reversed its decision, saying, “This was an interim measure only while we continue to work with our industry trade groups, insurance carriers and others to vigorously pursue all available legislative and commercial options to obtain protection from the consequences of terrorist- or war-related acts.” Signature’s war-risk insurance was restored on September 27, and insurance industry observers expected the status of war-risk insurance would stabilize soon.

FILED UNDER: 
Share this...

Please Register

In order to leave comments you will now need to be a registered user. This change in policy is to protect our site from an increased number of spam comments. Additionally, in the near future you will be able to better manage your AIN subscriptions via this registration system. If you already have an account, click here to log in. Otherwise, click here to register.

 
X