UPAC Insurance Program

In Canada, liability insurance is mandatory for all registered aircraft and covers both public liability (damage to third-party property and injuries to those outside the aircraft) and passenger liability (injuries or death to passengers). The specific minimum coverage amounts vary based on the aircraft’s maximum takeoff weight and the number of passengers. Proof of liability insurance must be carried on board the aircraft at all times. Pilots, instructors, and Schools have continued to request affordable insurance tailored to the needs of Ultralight flyers vice General Aviation.

Click on the following link to access UPAC’s insurance program: https://tinyurl.com/fe27h2f

Key aspects of liability insurance for pilots in Canada

Mandatory Coverage
The Canadian Aviation Regulations (CARs) require all registered aircraft to have liability insurance.

Two Types of Liability

• Public Liability: Covers damage to third-party property (e.g., other aircraft, buildings) and injuries to individuals outside the aircraft.
• Passenger Liability: Covers injuries or death to passengers within the aircraft.

Minimum Coverage Amounts
Minimum liability limits are determined by the aircraft’s maximum takeoff weight (MCTOW) and the number of passengers. For example, for aircraft with an MCTOW of less than 3,402 kg, the minimum passenger liability coverage is $595,000 per passenger seat.

Combined Single Limit
Many policies combine public and passenger liability into a single limit, simplifying coverage.

Proof of Insurance
Aircraft owners must carry proof of liability insurance on board at all times.

Additional Coverage
Beyond the minimum requirements, pilots and aircraft owners may also want to consider additional coverage such as hull insurance (for damage to the aircraft itself), and coverage for tools and equipment.

Professional Advice
It’s recommended to consult with an aviation insurance broker to assess specific needs and ensure adequate coverage.

Ultralight aircraft owners may also require additional coverage

Aircraft hull coverage
Aircraft hull coverage is designed to cover the costs of repairs following damage to your aircraft, caused by accidents, hangar rash, or weather events like hail and windstorm damage. There are two main types of hull coverage available, based on whether your aircraft is in the air or on the ground and not in motion.

All risks ground and flight (in motion)
The more comprehensive option, this coverage offers protection while the aircraft is in motion or not in motion, both in the air and on the ground. It includes collision coverage, as well as coverage for physical damage to the aircraft caused by accidental external impact while the aircraft is on the ground.

Ground risk hull (not in motion)
This option provides coverage for physical loss or damage sustained by your aircraft while on the ground or moored and not-in-motion, or while in transport by another vehicle. It does not apply when the aircraft is on the ground and moving under its own engine power, such as while taxiing.

Ultralight Instructors and Flight School Insurance

In Canada, ultralight flight instructors and schools require specific insurance coverage, primarily focused on third-party liability. While hull insurance (covering damage to the aircraft) is available, it’s not mandatory and can be more expensive. Ultralight schools also offer insurance for students, but it’s crucial to carefully review the policy details, as some may exclude student coverage.

Key Insurance Requirements and Considerations

Third-party Liability
All ultralight aircraft in Canada must carry at least third-party liability insurance. This coverage protects against claims for bodily injury or property damage caused to others by the aircraft.

Hull Insurance
Coverage for damage to the aircraft itself (hull insurance) is optional and can be more costly, especially if the aircraft is new or particularly valuable.

Student Pilot Insurance
While it’s not legally mandated in Canada, student pilots may consider having their own non-owned aviation insurance. This type of insurance protects student pilots from liability in case of accidents or damage to the aircraft they are flying, which is not always covered by the flight school or instructor’s policy.

Insurance Documentation
Proof of liability insurance must be carried on board the aircraft during operation.

School Insurance
Specific insurance for ultralight schools is available from various brokers.