Calvin Reich
 New
Canada
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Hi
I thought I would give a little bit of insight on the topic of Insurance for UAV operators in Canada.
1) For Recreational operators you can become a member of MAAC, Through the membership they do include liability insurance for recreational operations only. If any of your projects are non-recreational they do not cover. You also have to follow their rules and regulations. You do need to be aware of where and how you are flying.
2) For recreational operators you can check with your home insurance. It will depend on the company but many will not cover the operations of a UAV. The definitely will not cover for non recreational operations.
3) For non recreational operators there are some companies that are trying to write UAVs under a commercial general liability policy. There are some challenges with this. You will need to be aware of some of the exclusions in the wordings. Often there is an aircraft exclusion built into the wording that excludes the operation of an aircraft. Transport Canada has defined a UAV as an aircraft.
4) Some other exclusions to be aware under a commercial general liability policy of can be the weight of the UAV, the distance it can be operated from an airport or a build up area. One example I have come across is an exclusion if operated with in 9 km of an active airport or aircraft landing area, another exclusion is limited to 5 kg, and another is limited to 400ft. Keep in mind with a SFOC all of these operations are possible. The exclusions can be more limiting than the regulations.
I find that many of the commercial general liability carriers do not address the UAVs well. Many will not remove the aircraft exclusion.
5) There are options available for non recreational operators. The best option is often a UAV specific policy. Under a UAV policy there are options for liability as well as physical damage to the UAV itself. Some markets are not able to offer physical damage coverage. It may not be an issue at first with a lower valued UAV but if you go to add a more expensive unit down the road you will want to have the option for physical damage. I don't like to suggest markets that are only capable of liability only as it can be limiting down the road.
6) Transport Canada requires $100,000 liability for non recreational operators. There is not a requirement for recreational operators. $100,000 is low. I have seen a non UAV claim for a broken arm hit just below $100,000. I have seen a broken leg reach over $100,000. In most cases, limits start at $500,000 and go up from there. The limit required can also be dictated by contracts you enter. I have had clients require anywhere from $1,000,000 to $10,000,000 depending on the contract and who they are doing projects for.
7) The premiums will range depending on your experience, the unit you are operating, if there is a standing Special flight Operations Certificate, the area of operation, the weight of the UAV as well as any claims history. Typically there is a bit of a range in premium. $500,000 liability can start as low as about $600 - $850 per year and $1,000,000 UAV liability is often in the range of $800-$1100.
7)UAV insurance can be complex. My suggestion is to use someone that knows the UAV industry well as most policies are subject to the following the rules and regulations of Transport Canada. There is still a fair bit of mis information out there. The most common misconceptions are regarding the Exemption Rules. I still hear of operators that think they meet the Exemption rules, when many times they have not read the full list. The most common one is that if the UAV is under 2 kg they do not require a Special flight Operations certificate. In most cases, this is not true. Advisory Circular (AC) 600-004
8) your broker should be licensed in the Province you are located and registered in.
9) The Zurich program is available through a Zurich Broker. Zurich does not actually underwrite the program and they go through one of the other UAV markets. It can be a good option if you are a very large corporation with your main commercial general liability already with Zurich. It is not the best program for the smaller operator that does not have other business with Zurich.
We can assist if there are any questions. We are licensed in every province except Quebec and Newfoundland and I can assist with finding you a broker in those provinces.
Capri Insurance / Intercity Insurance
If there are any questions, contact 1-877-272-2774
Calvin Reich |
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Second Officer
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