Recent conversations with several aircraft owners have shown
that there are still owners out there who do not realize that aircraft liability
insurance is mandatory in Canada! Not only is liability insurance required to
comply with the law, it is also very smart to have. Liability insurance protects
you in the event that you damage someone else’s property. This could include
colliding with a parked aircraft, damaging a hangar or hitting a person. For
private aircraft owners the applicable CAR says, in part:
606.02 Liability Insurance
(1) This Section applies to every owner of an aircraft that is registered in
Canada, or registered pursuant to the laws of a foreign state and operated in
Canada…
(8) No [non-commercial] aircraft owner … shall operate an aircraft unless, in
respect of every incident related to the operation of the aircraft, the owner
has subscribed for liability insurance covering risks of public liability in an
amount that is not less than
(a) $100,000, where the maximum permissible take-off weight of the aircraft is 1
043 kg (2,300 pounds) or less;
(b) $500,000, where the maximum permissible take-off weight of the aircraft is
greater than 1 043 kg (2,300 pounds) but not greater than 2 268 kg (5,000
pounds);
(c) $1,000,000, where the maximum permissible take-off weight of the aircraft is
greater than 2 268 kg (5,000 pounds) but not greater than 5 670 kg (12,500
pounds);
(d) $2,000,000, where the maximum permissible take-off weight of the aircraft is
greater than 5 670 kg (12,500 pounds) but not greater than 34 020 kg (75,000
pounds); and
(e) $3,000,000, where the maximum permissible take-off weight of the aircraft is
greater than 34 020 kg (75,000 pounds).
(9) Subject to subsection (10), no owner or operator of an aircraft shall
operate the aircraft unless there is carried on board the aircraft proof that
liability insurance is subscribed for in accordance with this Section.
(10) A balloon may be operated without the proof of insurance referred to in
subsection (9) being carried on board if that proof is immediately available to
the pilot-in-command
(a) prior to commencing a flight; and
(b) on completion of a flight.
There are different rules in effect for commercial operators, flying training
units and balloons flying passengers for hire, so for the complete rules in
those categories check
CAR 606.02 in its entirety.
The important point is that every aircraft needs liability insurance. This
includes ultralights, gliders, balloons, gyroplanes and helicopters, as well as
home-builts, owner-maintenance and certified airplanes. With COPA’s insurance
program, administered by Marsh, the minimum coverage required is available at
very low rates. The minimum $100,000 liability insurance costs only $125 per
year. It is well worth the cost to cover yourself against potential suits as
well as to remain within the law.