Insurance Requirements

[ahramin]

Just renewing my aircraft insurance and would like someone to double check my reading of the CARs:

For a private aircraft under 5000 lbs NO passenger liability insurance is required. Just $500 000 public liability.

[CpnCrunch]

Is that a good idea? Also, I wouldn't go for anything less than $1M public liability.

Looking at a recent renewal, the price for $1M third party liability and $100k per passenger is only $221/yr for a C150. I really can't believe it's so cheap.

[7ECA]

CARS 606.02:

(8) No aircraft owner not referred to in paragraph (2)(a), (b) or (c) 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).

It would appear you can get away with not having any pax liability coverage, but I'd say it's not a bad idea to have it - especially since it probably won't add much additional cost to your premiums.

[PilotDAR]

If you're going to carry a passenger, you'd be a fool to not insure yourself against the possibility of a claim. If you have decided to not insure a passenger, have the decency to placard you plane that way...

[ahramin]

Whoops, I quoted the public liability wrong. I've corrected it now. My insurance company will not sell anything under 1M in any case.

As for the passengers, I'll self insure that. Just wanted to make sure it was legal. Thanks all.

[Heliian]

Whoops, I quoted the public liability wrong. I've corrected it now. My insurance company will not sell anything under 1M in any case.

As for the passengers, I'll self insure that. Just wanted to make sure it was legal. Thanks all.

The basic public liability is cheap, it's when you get into the pax liability that the prices jump. Each seat in the aircraft gets insured. I think the standard is 5 million per. I've seen it go as high as 20 million a seat.

CARS 606.02 has the full rundown.

[Bede]

If you're going to carry a passenger, you'd be a fool to not insure yourself against the possibility of a claim. If you have decided to not insure a passenger, have the decency to placard you plane that way...

True, but many home policies will indemnify you if you get sued for negligence.

One thing that I've learned recently is that most people (me included) do not consider their insurance needs adequately. You should know exactly what you are and aren't covered for for all of your insurance products.

[JasonE]

If you're going to carry a passenger, you'd be a fool to not insure yourself against the possibility of a claim. If you have decided to not insure a passenger, have the decency to placard you plane that way...

I completely agree with this statement. It's along the same lines as O/M aircraft with the declaration required. Most aviation insurance companies offer a CSL - combined single limit for both making it rather affordable.