McGill and Partners has expanded its aviation insurance offering to cover aviation spares against war perils while they are on the ground.
The global specialty insurance and reinsurance broker is providing the coverage with selected London market carriers.
The product targets a coverage gap in traditional aviation policies, where spares often receive war peril protection only while in transit by sea or air.
The new policy provides ground-based war coverage for spares and equipment stored on land and not moving by sea or air. It uses defined limits, with a sum insured per item, subject to a defined annual aggregate limit.
The policy covers physical loss or damage caused by war, invasion, acts of foreign enemies, hostilities, whether declared or not, civil war, rebellion, revolution, insurrection, martial law, military power, usurped power, or attempts to seize power.
That wording matters for airlines and lessors holding expensive spare parts in warehouses and hangars. Traditional aviation hull war policies have historically left those stored assets exposed once they were no longer in transit. A gap, sitting in plain sight.
McGill said the exposure has become more material as aircraft engine values rise. Individual engine values are now approaching $50 mn, creating direct balance sheet risk for airlines and aircraft lessors when stored assets lack ground-based war peril coverage.
According to Beinsure, the product reflects a broader push in specialty insurance to tighten coverage around high-value aviation assets as geopolitical risk becomes harder to park outside normal risk planning.
Stored spares aren’t idle from a capital perspective. They carry real replacement cost, financing value, and operational importance.
Jon Petursson, partner in aviation at McGill and Partners, said the launch comes at the right time and shows how the broker develops protection where clients need it. He said traditional hull war policies have left airlines and lessors exposed to financial loss because spare-part coverage has been restricted while assets sit in storage.
The launch of this new policy is incredibly timely and a demonstration of how McGill and Partners’ constantly innovates to provide clients with comprehensive protection where they need it most.
Jon Petursson, Partner, Aviation, McGill and Partners
“For years, traditional hull war policies have left airlines and lessors significantly exposed to financial loss due to insurance coverage for spare parts being restricted while they are stored.
Petursson said warehouses and hangars hold large inventories of high-value assets, including engines worth up to $50 mn each, without existing protection for stored spares hit by physical loss from war. He described the exposure as a growing balance sheet risk.
Multiple warehouses and hangars hold significant inventories of high-value assets, including individual engines worth up to $50 mn, with no existing protection for stored spares impacted by physical loss as a result of war, and representing a significant and growing balance sheet risk.
Jon Petursson, Partner, Aviation, McGill and Partners
“This solution can provide the assurance, protection, and financial security that operators require to safeguard essential equipment and high-value assets, regardless of their operational status.”
The new solution is intended to give operators protection and financial security for essential equipment and high-value assets, regardless of operational status.
For carriers, lessors, and risk managers, it creates a dedicated route to insure assets that traditional hull war wording has often left outside the covered zone.
McGill delivered record first-half results in 2025, reporting more than 20% organic revenue growth and a 79% jump in adjusted EBITDA compared with the same period last year.
The specialty broker also announced it has secured $300mn in new credit facilities from Morgan Stanley, Permira, and Bridgepoint.
The refinancing marks another milestone in the firm’s evolution. Management said the new structure provides long-term lender support at conservative leverage, while also enabling a dividend recapitalisation that will return capital to eligible shareholders.
The package includes a senior facility, an acquisition facility targeted at investment in technology and talent—AI among the priorities—and a revolving credit line.
Combined with existing backing from Warburg Pincus, the refinancing creates a more flexible capital base to pursue growth.
