November 12, 2001 by Canadian Underwriter
Just as U.S. regulators begin their investigation into Lloyd’s of London’s ability to pay claims resulting from the September 11 terrorist attacks, the company acknowledges it is among those on the hook for an airplane crash in New York.
Early Monday morning, an American Airlines Airbus A-300 crash into homes in the Queen’s borough of New York, shortly after take-off from Kennedy International Airport. It is believed all 246 passengers and 9 crew members were killed, and several injuries have been reported from people on the ground. New sources report that several homes on the ground were damaged or destroyed as a result of the crash.
Terrorism has not been blamed for the crash, although it has not been ruled out either. The flight was bound for Santo Domingo, Dominican Republic. All three New York airports were temporarily shut down following the crash.
Lloyd’s is the first insurer to confirm that it insures American Airlines, although it offered no further comment.
The event caps off what has been a disastrous year for airline insurance, one that has left airlines worldwide scrambling for cover. Although many countries, including Canada and the U.S. have offered temporary government-backed insurance to the airlines, these have been temporary measures.
No other loss estimates have been made yet as a result of today’s crash.