The following text isAnalysis from L&G Insurance Broker on the importance of aviation insurance and risk management, triggered by the crash of a Boeing 747 cargo plane operated by ACT Airlines on behalf of Emirates at Hong Kong International Airport on Monday (20/10/2025).
Main Summary:
- Accident Incident: A cargo plane skidded off the north runway of Hong Kong International Airport, hit a security patrol car, and partially sank into the sea. The accident killed two airport security officers and caused severe damage to the aircraft.
- Risk Management Analysis: This incident highlights the complexity of operational risk in aviation, including potential factors:
- Human Error
- Weather and Runway Conditions (Slippery runway, low visibility)
- Ground Safety and Sterile Areas (Gaps in the management of sterile areas around runways)
- Operational Coordination Failure (Involving multiple parties such as operators, cargo owners, and airport authorities).
- Related Types of Insurance: Various types of insurance policies play a role in covering losses, namely:
- Aviation Hull Insurance: Covers physical damage to aircraft (value up to US$150 million – US$200 million).
- Aviation Liability Insurance: Covers the operator’s legal liability to third parties (claims for death of airport personnel).
- Cargo Insurance: Covers damage to cargo.
- Airport Liability Insurance: Covers the legal liability of airport authorities in the event of negligence.
- Workers’ Compensation & Personal Accident Insurance: Protection for airport personnel victims.
- The Importance of Insurance Brokers: L&G Insurance Brokers emphasize that risk cannot be completely eliminated, it can only be minimized and transferred. In complex cases like this, the role of a broker (who sides with the customer) is crucial in assisting with the risk assessment and claims process, unlike an agent who sides with the insurance company.
This accident is a stark reminder that financial protection through proper insurance and sound risk management are integral components of business sustainability in the logistics and aviation industries. L&G Insurance Broker offers itself as a strategic partner in integrated risk management.
Contact L&G Insurance Broker now on 08118507773 for free consultation before risk.
The crash of a Boeing 747 cargo plane operated by ACT Airlines on behalf of Emirates at Hong Kong International Airport in the early hours of Monday (October 20, 2025) has once again reminded the world of the importance of risk management and insurance protection in the aviation industry. The tragic incident killed two airport security personnel and caused extensive damage to the cargo plane, which partially sank into the sea.
As an experienced insurance broker, L&G Insurance Broker views this case as a clear example of the complex chain of risks in the aviation sector, from operational aspects and safety to the legal responsibilities of the parties involved. Such accidents not only result in material losses but also the potential for litigation, reputational damage, and significant business disruption.
Brief Chronology of Events
According to reports from Al Jazeera and various official sources, the accident occurred at around 4 a.m. local time. The Boeing 747 cargo plane, owned by ACT Airlines and chartered by Emirates SkyCargo, landed on the north runway of Hong Kong International Airport.
However, moments after the plane’s wheels touched the runway, it skidded off course, struck a guardrail, and then struck an airport security patrol car on the other side of the fence. The impact dragged the car into the sea, about five meters from the shoreline.
Two people in the patrol car, a 30-year-old man and a 41-year-old man, died. One died at the scene, while the other died after being rushed to the hospital. Meanwhile, the aircraft sustained extensive damage: the tail section was broken, the emergency slide was activated, and the lower part of the cockpit was severely damaged.
The accident triggered a massive evacuation of the airport area and the temporary closure of the north runway. The Hong Kong Airport Authority, along with aviation regulators, immediately launched an investigation into the cause of the derailment.
Risk Management Analysis
From a risk management perspective, this incident demonstrates that even with modern aviation technology and stringent safety procedures, operational risks cannot be completely eliminated but can only be minimized and transferred through appropriate insurance mechanisms.
There are several potential risk factors that can be analyzed from this incident:
1. Human Error
Most aircraft accidents in the world are caused by human factors, whether in the cockpit, in the control tower, or in the ground operation area.
Pilot fatigue, miscommunication with air traffic control, or maneuvering errors can cause a plane to lose control during landing.
2. Weather and Runway Conditions
External factors such as slippery runways due to rain, low visibility, or crosswinds can increase the risk of skidding.
In this case, initial reports mentioned cloudy weather and high humidity in the early hours.
3. Ground Safety and Sterile Area
The incident involving the patrol car hit highlights gaps in the management of sterile areas around runways. ICAO international standards require that certain areas around runways be completely free of vehicles or activities not directly related to flight operations.
4. Failure of Operational Coordination
In a cross-country cargo flight situation like this, there are usually multiple parties involved:
- Flight operator (ACT Airlines)
- Cargo owner (Emirates SkyCargo)
- Airport authorities
- Ground handling service provider
- Aviation regulator
Each party has its own responsibilities and potential risks. Lack of cross-party coordination is often an unseen source of problems.
Related Types of Insurance
In any aviation accident like this, several types of insurance policies will play a role in covering losses according to each party’s portion of the risk.
1. Aviation Hull Insurance
This policy covers physical damage to the aircraft due to accidents, both in the air and on the ground.
In the case of the Boeing 747, the damage to the underside of the cockpit and the broken tail will be claimed through Hull All Risk Insurance.
The value of a Boeing 747 cargo aircraft can reach US$150 million – US$200 million, making hull protection crucial for operators like ACT Airlines.
2. Aviation Liability Insurance
Bearing the legal responsibility of the flight operator towards third parties outside the aircraft (third party liability).
Because in this accident two airport officers died as a result of being hit, the death claim will be covered by this policy.
The amount of compensation can be very large, depending on local laws and applicable insurance policies.
3. Cargo Insurance
If the cargo on the plane is damaged due to an accident, the owner of the goods (in this case Emirates SkyCargo or the client sending the goods) can submit a claim to Air Cargo Insurance.
This claim covers physical damage, loss, or contamination due to an accident.
4. Airport Liability Insurance
The Hong Kong Airport Authority also has legal responsibility for safety in the airport area.
If there is proven negligence in regulating vehicle traffic in the runway area, airport liability insurance will cover part of the compensation to the victim’s family.
5. Workers’ Compensation & Personal Accident Insurance
Airport security officers who become victims are of course protected by employment insurance.
However, in fatal cases like this, claims can be extended through additional personal accident or group life insurance policies provided by the airport management.
Economic and Legal Implications
Accidents in the aviation sector always involve a long chain of legal responsibility.
There is potential for lawsuits from the families of victims, aviation regulators, and even cargo owners who experience delays or losses.
In addition to direct losses, the reputation of airlines and airports is also affected.
Accidents like these can lead to increased insurance premiums, tightened safety regulations, and even the temporary suspension of commercial operations for safety audits.
Important Lessons for the Insurance World
From this incident, there are several important lessons that can be learned, especially for industry players operating in high-risk sectors such as aviation, logistics, and construction:
- Risk can be transferred, but not eliminated.
No matter how good the control system is, residual risk always exists.
- Claims readiness is key.
When a major accident occurs, the insurance claims process can be very complex and take months, especially if it involves multiple parties across countries.
- The role of an insurance broker is very important.
Brokers help ensure all parties have the right insurance coverage, understand the policy’s terms, and assist with the claims process from start to finish.
Why Go Through an Insurance Broker, Instead of an Agent or Company Directly?
Many business people still do not understand the fundamental differences between insurance brokers and insurance agents.
In the context of a major risk such as aviation, this difference can determine the success of a claim and the company’s financial protection.
Insurance Broker = Your Side
Brokers like L&G Insurance Broker side with the customer, not the insurance company.
We are tasked with objectively assessing your business risks, choosing the best policies from various insurance companies, and ensuring that each clause truly fits your operational needs.
Insurance Agent = Insurance Company
Agents can only offer products from one company.
The focus is on selling policies, not protecting your interests in the event of a claim.
In cases of major accidents like this, customers often get caught up in claim disputes because they don’t understand the details of the clauses sold by the agent.
L&G Insurance Broker: Strategic Partner in Risk Management
As a national broker with decades of experience in the aviation, marine cargo, property, and engineering insurance industries, L&G has a strong reputation for handling complex, high-value claims.
We not only sell policies, but also design integrated risk management strategies ranging from risk assessment, placement, to claims assistance.
Conclusion
The cargo plane crash at Hong Kong Airport is a stark reminder to the entire logistics and aviation industry: that every operational activity carries risks that must be taken seriously.
It’s not enough to rely solely on safety systems or operator experience; financial protection through appropriate insurance and sound risk management are integral components of business sustainability.
With the support of a professional insurance broker like L&G Insurance Broker, companies can ensure that all aspects of their risks have been analyzed, insured, and are ready to be handled quickly if an incident occurs.
Contact us
Consult your Aviation, Cargo, or Liability Insurance needs with L&G Insurance Broker now for FREE!
📞 WhatsApp: 08118507773
📧 Email: halo@lngrisk.co.id
🌐 Website: www.lngrisk.co.id
