Aircraft insurance safeguards owners and operators from financial losses caused by damage, accidents, or liabilities. This protection applies to:
This coverage is essential in Canada due to the country’s size and aviation’s key role in connecting communities. It also helps aviation businesses recover from financial setbacks.
For example, a storm in British Columbia in 2024 damaged a small commercial plane which resulted in a $500,000 insurance claim. Thanks to aircraft insurance, the business quickly resumed operations with minimal loss.
Aircraft now collect real-time data to improve safety, but using this data for insurance can be complex. Drones are being used more for work and hobbies and create new insurance needs.
As the industry becomes more connected, cybersecurity threats like hacking are growing which makes digital protection critical. These changes also bring in different dangers:
Extreme weather like storms and wildfires in Canada increases threats for aircraft and cargo. Regional conflicts and restricted airspace create added operational challenges.
In Canada, aircraft owners must have liability insurance as required by the Canadian Aviation Regulations (CARs), Section 606.02. This covers damages or injuries caused to others and ensures compliance with federal law.
Hull insurance is also recommended to protect the plane from physical damage. Additional aircraft insurance options can include passengers, cargo, and equipment.
Yes, flight insurance can be bought after a flight has been booked. However, buying it early is better as some benefits may be limited.
The required amount of aircraft liability insurance in Canada depends on the aircraft's maximum takeoff weight (MCTOW) and passenger capacity. As of July 1, 2021, the Canadian Transportation Agency (CTA) mandates the following minimum coverage:
Public liability insurance
The minimum coverage required is $595,000 per passenger seat. These requirements are detailed by the CTA.
It is important to note that these are minimum requirements. Depending on factors such as the aircraft's use, value, and operational areas, higher coverage may be advisable.
Yes, aircraft operators must have liability insurance before flying. This covers damages to others and, if needed, passenger-related costs. Flying without aircraft insurance can lead to legal penalties and financial risks.
Insuring a small private aircraft can cost up to $2,000 per year. High-value planes, like private jets, may have premiums over $30,000 annually.
The annual cost of owning a private plane in Canada relies on the type of aircraft and other factors. A turboprop can cost about $700,000 yearly, while large jets may cost up to $4 million each year.
Other factors affecting price
Proper financial planning is vital to manage these costs effectively.
All registered aircraft must have insurance to cover many areas of risk during operations. This insurance is good for:
Custom aircraft insurance coverage helps protect finances and meet Canadian aviation laws.
