US shutdown aviation chaos raises fears of spike in workers’ compensation claims

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Industry observers in Insurance are monitoring emerging trends closely. By Gia Snape
Chaos in airline operations triggered by the prolonged US government shutdown has heightened concerns that workers’ compensation claims among aviation-industry employees could rise sharply in the coming months. According to reports that earlier this month, the Federal Aviation Administration (FAA) warned of up to a 10 % cut in air-traffic capacity across 40 major US airports to ease pressure on controller staffing amid the shutdown that began on Oct. 1.

An industry trade group told Reuters that over 3.2 million travellers were affected by air traffic controller shortages by early November. Evidence suggests that the shutdown ended on Nov. 13, after President Donald Trump signed a bill reopening the government. Sarah Thomas (pictured), managing partner at Jones and Jones, said the aviation workforce has been under “higher-pressure” conditions. With mass flight delays, cancellations, and added staffing issues, insurers and aviation firms alike are bracing for a wave of workplace injury, stress and assault-related claims.

Data shows that “We might see a pop-up of claims just based on this highly pressurized moment,” Thomas said. Workers’ compensation exposures in aviation differ significantly from those in typical customer-facing industries, largely because the workplace itself is dynamic, mobile, and high-risk. The most common injuries resulting in claims, according to Thomas, include:
Thomas also highlighted that long hours and unresolved operational disruption increase the likelihood of back-injuries, musculoskeletal strains, and stress-related claims.

“With these delays and cancellations… people are working really long hours,” she told Insurance Business. “It could definitely cause an increase in stress claims.”
Ground crew are not immune. Thomas noted that “sprains and strains” are prevalent among personnel loading baggage and equipment, especially during peak travel periods (e.g.

Data shows that meanwhile, flight crew may face stress claims stemming from turbulence, interactions with passengers and prolonged duty periods. Beyond physical hazards, there is concern that worker exposure to frustrated or aggressive passengers may increase as the shutdown-related travel problems continue. “We have seen [violence] in general,” Thomas said. “It can run the gamut from being on the receiving end of a verbal barrage that causes stress, but we’ve also seen physical altercations.”
For insurers underwriting aviation workers’ compensation, this disruption raises questions around exposure to both physical injuries and psychosocial claims.

Since the pandemic, carrier exposure to latent trauma, workplace aggression and fatigue-driven injury has increased in many public-facing sectors. Data shows that employers in the aviation sector should prioritize:
The US government shutdown’s ripple effects have thrust the aviation ecosystem into turbulent territory. Historically, aviation injury claims surge in high-volume travel periods, and this period’s operational disruption may overlay additional risk. “It’s too soon to tell,” Thomas cautioned, “but I do think there’s going to be possibly a spike (in claims) depending on if people were working more hours than they were used to.”

Experts suggest this represents a significant moment for the Insurance sector, with implications extending beyond immediate stakeholders.

— Based on reporting from insurancebusinessmag.com

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