30 th Annual Airport Conference Hershey, PA – March 8, 2007 Airport Liability Insurance Coverage

1. 30th Annual Airport ConferenceHershey, PA – March 8, 2007Airport Liability Insurance Coverage Stephen Dinsdale Senior Vice President

2. Airport Liability Insurance Coverage • Key Exposures – Hazardous Operations • Loss Frequency • Loss Severity • Loss Mitigation • Liability Coverage

3. Key Exposures Airside • Runway Marking • Free Clear Zones (trees) • Construction – changed Taxiways • Runways & Taxiway Condition • Apron Areas • Ramp Services • Electrical Maintenance • ATC / Ramp ATC • Parachuting / Hangaring / Air Meets

4. Key Exposures Terminal • Slips, Trips, Falls • Construction – unfamiliarity Other • Taxis – Shuttle buses • H5NI

5. Loss Frequency * Benchmark Study • 175+ commercial airports • 2000 - 2006 liability claims • Analyzed by Hub Type  Large 6.6 million + enplanements  Medium 1.6 to 6.6 million  Small 330,534 - 1.6  Non-Hub 10,001 to 330,534

6. Loss Frequency * Incident Rates Based on: • ACE USA Airport Liability claims data • Dollar Cost of Claims • Number of Liability Claims • Enplanements • Aircraft Operations

7. Loss Frequency * Benchmarking Considerations • Variety of Operations and Services • Liability claim cost variance • Claims Handling Methods * Information for this Loss Frequency section is taken from the presentation by Ginga Griffin of ESIS, at the ACI-NA Insurance & Risk Management Seminar on 1/12/2007 and is proprietary information to ACE and ACE INA. This cannot be reproduced or distributed in anyway without our permission.

8. Number of Claims Per 1 Million EnplanementsValued 11/06 *2005 and 2006 data not fully developed **2006 - 11 months data ACE USA data

9. Number of Claims Per 100,000 Aircraft OperationsValued 11/06 *2005 and 2006 data not fully developed **2006 - 11 months data ACE USA Data

10. Claim Costs Per 1 Million EnplanementsValued 11/06 *** * 2005 and 2006 data not fully developed **11 months data *** Large loss omitted ACE USA Data

11. Claim Cost Per 100,000 Aircraft OperationsValued 11/06 *** *2005 and 2006 data not fully developed **11 months data *** Large loss omitted ACE USA Data

12. Percentage of Claim Cost by Accident Type – Year 2006 ACE USA Data

13. Percentage of Number of Claims by Accident Type – Year 2006 ACE USA Data

14. Loss Mitigation Airside • Improved Technology • Ground Radar • FAA Advisory 120-92 (SMS) / ICAO • Clear Signage, especially when taxiways are changed • Security • Inspections • EMAS or Overrun?

15. Loss Mitigation Terminal • Vigilance • Risk Transfer  Janitorial  Skycaps  Wheelchairs

16. Liability Policy Coverage – Summary A. Coverage • Bodily Injury – Broad Form • Property Damage – Broad Form This slide and the following slides summarize customary policy provisions. Please see actual policy for all terms and conditions.

17. Liability Policy Coverage - Summary • Policy Coverage • Personal Injury • Advertising Injury • Incidental Malpractice

18. Liability Policy Coverage - Summary • Policy Coverage (cont’d) • Products-Completed Operations • Hangarkeeper’s Liability (excluding flight) • Non-owned Aircraft Liability (no seat limitations)

19. Liability Policy Coverage - Summary • Policy Coverage (cont’d) • Excess Employers’ Liability • Excess Automobile Liability

20. Liability Policy Coverage - Summary • Policy Coverage (cont’d) • Host Liquor Liability • Coverage for Airmeets (over 5 mil primary)

21. Liability Policy Coverage - Summary • Policy Coverage (cont’d) • Operations necessary or incidental to the ownership, maintenance or use of the airport. • Contractual Liability

22. Liability Policy Coverage - Summary • Policy Coverage (cont’d) • Usually no exclusion for autos or watercraft while on the “airport” • Cover generally applies to autos or watercraft, while off the airport if responding to an aviation emergency.

23. Liability Policy Coverage - Summary • Policy Coverage (cont’d) • Cover for the Insured’s liability under Mutual Aid Agreements • Control Tower (Contingent / Indirect)

24. Liability Policy Coverage - Summary • Policy Coverage (cont’d) • Fire Damage can be amended to cover premises temporarily occupied by the Named Insured. • Fellow employee exclusion can be deleted. • Medical Payments

25. Liability Policy Coverage - Summary B. Common Coverage Exclusions

26. Liability Policy Coverage - Summary BI/PD Exclusions • Aircraft, Auto or Watercraft - while off the airport premises except when responding to an aviation emergency. • Mobile Equipment - bodily injury or property damage is excluded when mobile equipment is in transport, or being used in a contest or any stunting activity.

27. Liability Policy Coverage - Summary BI/PD Exclusions Continued • Airmeet, Contest or Exhibition • Swimming Pools or Lodging Accommodation • Control Tower – if maintained / operated by the Named Insured. • Damage to Property • Damage to Your Product / Damage to Your Work

28. Liability Policy Coverage - Summary EXCLUSIONS Hangarkeepers Liability • Excludes aircraft in flight, and owned, rented or leased by insured. • Excludes aircraft not in your care, custody, and control.

29. Liability Policy Coverage - Summary EXCLUSIONS Non-Owned Aircraft Liability • Excludes aircraft, property damage • Excludes workers’ compensation • Excludes employment related claims