Under the spares endorsement, the insurer will cover any consequential loss of any nature.

Under the spares endorsement, the insurer will cover any consequential loss of any nature.

• A. True
• B. False
• C. Only direct losses
• D. Not specified

Answer: (B)

The spares endorsement mainly covers the physical loss or damage to spare parts themselves—while they’re in transit, stored, or being used on an aircraft. It does not automatically extend to indirect or downstream impacts, such as downtime, loss of aircraft availability, or lost revenue that arise from the loss or delay of those spares. Covering such consequential losses would require a separate business interruption or contingency extension. Because of that, the statement that the spares endorsement will cover any consequential loss of any nature is not correct.

The spares endorsement mainly covers the physical loss or damage to spare parts themselves—while they’re in transit, stored, or being used on an aircraft. It does not automatically extend to indirect or downstream impacts, such as downtime, loss of aircraft availability, or lost revenue that arise from the loss or delay of those spares. Covering such consequential losses would require a separate business interruption or contingency extension. Because of that, the statement that the spares endorsement will cover any consequential loss of any nature is not correct.