In Canada, the Canadian Aviation Regulations require every aircraft owner, renter or borrower private or commercial to carry liability insurance for property damage and bodily injury caused to third parties, plus passenger liability insurance. Minimum coverage amounts vary by aircraft weight and use; carrying too little exposes you personally if an accident happens.
The basics
Your eligibility and premium start with your experience: flight hours logged across different aircraft types and classes, where you fly, how often you fly, why you use the aircraft (recreation, business, flight training), and your age. Whether you own the aircraft, charter it, lease it or borrow it, you need liability insurance. If an accident happens while you're flying, expect to be named in any resulting claim or lawsuit liability insurance helps cover your legal defence as well as the damage or injury you or your aircraft caused.
The minimum coverage required by law
Section 606.02 of the Canadian Aviation Regulations (CARs) sets minimum coverage floors based on an aircraft's maximum permissible takeoff weight (MPTOW) and how it's used. These are legal minimums, not recommendations your broker can, and often should, suggest higher limits based on your situation.
Non-commercial (private owner) aircraft - minimum public liability coverage:
Maximum permissible takeoff weight (MPTOW) | Minimum coverage required |
|---|---|
Up to 1,043 kg (2,300 lb) | $100,000 |
Over 1,043 kg to 2,268 kg (2,300–5,000 lb) | $500,000 |
Over 2,268 kg to 5,670 kg (5,000–12,500 lb) | $1,000,000 |
Over 5,670 kg to 34,020 kg (12,500–75,000 lb) | $2,000,000 |
Over 34,020 kg (75,000 lb) | $3,000,000 |
Commercial operators, flight training units and balloon operators carrying fare-paying passengers must also carry passenger liability coverage of at least $300,000 per passenger on board. Private owners of aircraft over 2,268 kg are subject to the same per-passenger requirement.
These figures reflect the CARs as in effect in 2026; the regulation can be amended. Always confirm the exact amounts that apply to your aircraft with your Covalen broker before binding or renewing a policy.
Passenger liability insurance
Passenger liability insurance is also required by law once an aircraft carries fare-paying passengers or, depending on its weight, non-paying passengers. Your passengers can hold you liable for injuries suffered on a flight you piloted or even on an aircraft you own but weren't piloting at the time of the incident.
Combined or split limits and flying outside Canada
General liability and passenger liability insurance can be written as a combined limit or as separate limits. What matters is making sure both match your actual needs: getting the split wrong can become a serious problem in the event of major injuries or significant property damage. If you fly outside Canada, some countries impose specific requirements that aren't automatically covered by a standard policy — always tell your broker your exact travel itinerary before you go.
Renting or borrowing an aircraft? Consider non-owner insurance
You are not automatically covered by the owner's policy when you rent or borrow an aircraft. Non-owner liability insurance helps pay legal costs if you're sued for liability, as well as physical damage you might cause while operating the aircraft. You can also buy your own passenger liability insurance and your own aircraft physical damage coverage, to protect yourself against a significant payout if you cause damage.
How to lower your aviation insurance premium
A few things can help you secure a lower premium or a higher coverage limit. Tell your broker about any changes to your profile:
- Any new instrument rating or flight certification earned during the policy year.
- Recent training, backed by a completion certificate.
- A co-ownership arrangement to reduce operating costs — most insurers allow up to three pilots on one policy, but pricing is heavily influenced by the least experienced pilot in the group.
The 2026 aviation insurance market: what's changing
After two years of falling premiums (2024–2025) driven by ample capacity among insurers, the general aviation insurance market stabilized in the first quarter of 2026 rates are still softening in several segments, but at a slower pace. Geopolitical uncertainty since spring 2026 is adding upward pressure, however: increases of 10% to 20% or more are possible in some segments before year-end if conditions persist. Owners and operators with a strong safety record and few claims remain best positioned to secure favourable terms. Now is a good time to review your coverage with your broker rather than waiting for renewal.
Frequently asked questions
What insurance is mandatory for an aircraft in Canada? The Canadian Aviation Regulations require liability insurance for property damage and bodily injury caused to third parties, plus passenger liability insurance. Minimum amounts vary by aircraft weight and whether it carries fare-paying passengers.
How much liability coverage do I need for my private aircraft? For non-commercial use, minimum coverage ranges from $100,000 (aircraft of 1,043 kg or less) to $3,000,000 (aircraft over 34,020 kg), based on maximum permissible takeoff weight. Aircraft over 2,268 kg must also meet the $300,000-per-passenger requirement.
Am I covered if I borrow or rent a friend's plane? Not automatically. The owner's policy doesn't necessarily cover you as the borrowing pilot. Non-owner insurance protects you for legal costs and damage you might cause while flying an aircraft that isn't yours.
Are aviation insurance premiums going up in 2026? The market softened in 2024–2025, but geopolitical uncertainty since spring 2026 could push rates up 10% to 20% in some segments before year-end. A strong safety record remains your best lever for limiting the impact on your premium.
Can I insure multiple co-owner pilots on one policy? Yes. Most insurers accept up to three pilots on a single co-ownership aircraft policy, but pricing reflects the experience level of the least qualified pilot in the group.
A blue-sky mindset
Insurance and ongoing training are two of the best ways to keep flying safe and enjoyable: together they lower accident risk and protect everyone involved from significant financial loss. Aircraft liability insurance is more than financial protection — it's the peace of mind you need to fly with a clear head.
Own, rent or borrow an aircraft? Covalen's aviation-specialized brokers several of whom are licensed pilots themselves compare the best offers on the market for you, including the COPA aviation insurance program. Get an aviation insurance quote or visit our aviation insurance page to learn more.
