Is Aircraft Insurance Mandatory in Canada? The Legal Minimum Liability by Aircraft Weight

This is general information, not legal advice. Regulations change, so confirm the current text and how it applies to your aircraft with Transport Canada or an advisor before you rely on it.

Quick answer: for most owners of registered aircraft, yes. Section 606.02 of the Canadian Aviation Regulations requires liability insurance, and the minimum depends on the aircraft's maximum take-off weight. The section does not require hull insurance, which covers damage to your own aircraft. Your lender, hangar, airport or club may still ask for more than the legal minimum.

What section 606.02 actually says

Section 606.02 applies to the owner of an aircraft, other than a remotely piloted aircraft, that is registered in Canada or registered in another country and operated in Canada. The one carve-out is owners who are already required to carry liability insurance under section 7 of the Air Transportation Regulations, which typically means licensed commercial carriers.

Two kinds of liability appear in the section:

• Public liability (also called third-party liability): claims by people on the ground and others outside the aircraft.
• Passenger liability: claims by people on board.

The minimums depend on who you are and how much the aircraft weighs. Weight means maximum permissible take-off weight, not the weight it flies at on a given day.

Minimums for most private and non-commercial owners

For owners who are not air operators, flight training units or balloon operators carrying fare-paying passengers, subsection 8 sets the minimum public liability per incident:

Passenger liability is different. For these owners, subsection 4 requires it only for aircraft over 2,268 kg (5,000 lb), and the minimum is $300,000 multiplied by the number of passengers on board. Passengers carried for a parachute descent are excluded. So the section does not require passenger liability insurance for lighter private aircraft.

To make that concrete, take three hypothetical aircraft. A light aircraft with a maximum take-off weight of 1,000 kg has a $100,000 public liability minimum and no passenger liability requirement under this section. One at 1,500 kg has a $500,000 minimum. A twin at 3,000 kg has a $1,000,000 public liability minimum plus $300,000 for each passenger on board.

Minimums for commercial-type operators

Owners who are air operators, flight training unit operators or balloon operators carrying fare-paying passengers fall under different numbers in the same section. Their passenger liability minimum is $300,000 multiplied by the number of passengers on board, and the public liability minimum per incident is:

If you fly for hire or run a flight school, Air1's commercial aviation insurance page explains how the exposure changes. The section also allows these limits to be met with a single combined policy or a mix of primary and supplementary policies.

Proof must be on board

Section 606.02 also requires you to carry proof of insurance on board the aircraft. For balloons, the proof may be kept off board if it is immediately available to the pilot-in-command before a flight and after it is completed.

What the section does not require

Reading the section closely shows what is not in it:

• Hull insurance. Damage to your own aircraft is not part of the requirement. Air1's ultralight page says hull coverage is not generally mandatory, but owners may choose it to protect the aircraft itself.
• Passenger liability for lighter private aircraft, as above.
• Drone insurance. The section excludes remotely piloted aircraft. Transport Canada says insurance is recommended but not required for standard drone categories, and our guide to drone rules in Canada explains when proof may be required.

Why the legal minimum is often not the whole answer

The regulation sets a floor. Other parties can set a higher one. Air1's ultralight page notes that aerodromes or landowners may ask for proof of insurance, and our guide to hangar insurance and lease requirements explains that hangar and airport leases can set insurance requirements such as liability limits, proof of insurance or named parties. A lender financing your aircraft may set its own conditions, so ask what it needs.

A $100,000 minimum for a light aircraft also says little about what a serious claim could cost. Think about how your limit compares with your assets and your passengers, rather than treating the legal minimum as the target.

What if I rent or borrow an aircraft?

Section 606.02 is written around the owner. If you fly a rented, borrowed or club aircraft, ask whose policy responds to you and whether you need your own cover. Our guide to non-owned aircraft and renter pilot coverage explains the difference.

Questions to ask about your limits

• What is the aircraft's maximum permissible take-off weight, and does the limit I am quoted meet or exceed the minimum for that band?
• Is the limit a single combined limit, and does it cover passengers as well as people on the ground?
• Do my lease, hangar or airport require a higher limit, named parties or proof of insurance?
• Is hull coverage included, and on what basis?
• Which pilots are covered, and do their hours and ratings matter?

Our aircraft insurance cost guide and owner checklist walk through what to prepare.

FAQ

Is aircraft insurance mandatory in Canada?

‍Liability insurance is required for owners of registered aircraft under section 606.02, other than owners already required to carry it under the Air Transportation Regulations. Hull insurance is not part of that requirement.

How much liability insurance must I carry?

‍For most private owners the public liability minimum depends on weight, from $100,000 for aircraft up to 1,043 kg to $3,000,000 above 34,020 kg. Commercial-type operators have different minimums.

Do I need passenger liability insurance?

‍Under section 606.02, private owners need it only for aircraft over 2,268 kg, at $300,000 multiplied by the number of passengers. Your lease, lender or own judgement may call for it on lighter aircraft.

Is hull insurance required in Canada?

‍Not by section 606.02. It protects your own aircraft, so owners usually choose it based on the aircraft's value and any lender requirements.

Do I need insurance to fly a drone in Canada?

‍Not for standard categories, according to Transport Canada, though it is recommended. Section 606.02 excludes remotely piloted aircraft.

Where do I find my aircraft's maximum take-off weight?

‍It is usually in the aircraft's flight manual or type documentation. Ask your advisor or maintenance provider if you are not sure.

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If you are checking whether your cover meets the legal minimum, Air1's aviation insurance options are a good place to start, and you can request a quote to compare limits with an advisor.

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