Drone Regulations

33. Are UAS operators obliged to have insurance for their operations? If so, which are their main features?

Bahamas

A person must not operate or pilot a RPA unless the operator and/or the pilot has
current third-party liability insurance of claim levels acceptable to the Authority for the level of risk and has evidence of that insurance in his personal possession at the time of flight. No further specific details are provided for in the relevant regulations.

Bolivia

Regulation does not specify the indemnity sums/limits and restricts to mention that the operator, at the time of authorisation is requested, must have proof of an adequate civil liability insurance.

Brazil

Yes depending on the class of UAS as more particularly described in section 23.

Canada

Liability insurance of at least CDN$100,000 is required if the UAS weighs more than 1 kg. Complex operations will require more than CDN$100,000 and the amount will be set out in the SFOC.

Colombia

Only Class B are required to have an insurance for their operation. In this class the operator must have constituted a security or a liability policy that ensure their liability from damage caused to third parties on surface.

Costa Rica

According to Article 6 of the Operational Directive, operators must have a civil liability insurance policy that covers civil liability for damages to third parties that are caused during or due to the flight performance. The insurance policies must be issued by insurance companies authorized to operate in Costa Rica. As it was mentioned before, there is not a minimum amount required by DGAC for this type of insurance.

El Salvador

Every UAS’s operator that intends to carry out aerial work must have an insurance policy on the UAS with a minimum coverage of $ 1,000,000 (one million dollars of the United States of America) for civil liability (in case of damages to third parties or private property) and coverage within the territory of El Salvador. Private UAS operators for non-recreational purposes must have a policy with the same characteristics.

Germany

As far as UAS are recognized aircraft according to the German Aviation Act (Luftverkehrsgesetz/LuftVG), the provision concerning third-party liability and mandatory insurance coverage apply also to UAS owners. As general liability insurance does not usually cover this specific risk, UAS owners need specific liability insurance.

According to article 37 German Aviation Act (Luftverkehrsgesetz/ LuftVG), even UAS with less than a 500kg maximum take-off mass need third-party liability insurance that covers at least 750,000 special drawing rights. Further, according to article 113 of the Insurance Act, insurance must be provided by an insurance company that is authorized to provide insurance coverage in Germany. Proof of insurance must be provided and maintained during the operations.

Guatemala

Yes. According to Article 101.59 of RAC-101 the owner or operator must have an insurance policy to cover the damages caused. The owners of UAS operating in commercial activities must send the receipts of the insurance policy to DGAC in maximum 10 days after its emission or renewal.

India

Yes, all civil UAS operators must have insurance for the liability that they might incur for any damage to third-party resulting from an accident/incident.

Israel

Pursuant to the Air Navigation Regulations (Insurance Requirements in Commercial Operation of Aircraft), 2017 (the “Insurance Regulations”), an air operator may operate an aircraft for commercial use, from or to Israel, or within its territory, only if its liability for damages that may be caused to the body of a passenger, its luggage, cargo or property, or to the property of a third party, during a flight, is insured in the minimum amounts set forth in the Insurance Regulations. Insurance must cover damage that may result from war and acts of terror. The procurement of suitable insurance is a prerequisite for obtaining an AOC (for details about AOCs, see: response to question 11 above). As mentioned above, pursuant to Section 33(c) of the Draft Regulations (Small Drone), the operation of a small drone does not require an AOC. However, the applicability of the Insurance Regulations on small drones for commercial use, are not excluded by the Draft Regulations.

Italy

Pursuant to the ENAC Regulation no UAS must be operated without a third-party insurance, which shall be adequate to the operations and compliant with the minimum insurance coverages provided by Regulation (CE) 785/2004 (on insurance requirements for air carriers and aircraft operators).

Kenya

All aircraft operating in Kenya are required to have minimum insurance policy in respect of third party risks. The Draft Regulations also require UAS operators to have minimum insurance policy in respect of third-party risks.^[48] However, the Authority may dispense with the requirement for insurance depending on the category of the UAS. The minimum sum of insurance shall be notified by the KCAA.

[48] Regulation 40 of the Draft Civil Aviation (Unmanned Aircraft Systems) Regulations,2019

Mexico

Yes. Mandatory rules “CO AV23/10 R4” establish that the RPAS must have insurance covering damages against third parties.

Nicaragua

There is not an express regulation on this matter.

Norway

Pursuant to the UAS Regulations Section 18, which applies to all RPAS-operators, the operator is responsible for the existence of a valid insurance covering third-party liability, cf. Section 11-2 of the Aviation Act. The insurance obligation does not apply to UAS which are considered as model airplanes.

Pakistan

Yes. Pursuant to Rule 48 of the Insurance Rules, 2017, read with 165(2) of the Insurance Ordinance, no person shall insure outside Pakistan any risk or part thereof in respect of any property or interest which is located in Pakistan at the time the insurance is affected. The implication of the specific wording of the statute is that in the case of an ambulatory chattel, which is physically located outside Pakistan at the time the insurance is affected, the insurance need not be affected with a Pakistani insurer. However, we have in practice not seen Pakistani aircraft operators being required by their lenders to affect insurance outside Pakistan principally because of the assignment of reinsurances and/or cut-through arrangements.

The aircraft must be insured in Pakistan unless an exemption is obtained as set out above.  It is customary for Pakistani insurers of aircraft to reinsure a substantial proportion of the risk in the international markets.

However, if need be, the Federal Government may grant an exemption where (a) any risk cannot be insured suitably in Pakistan; or (b) there are reasons of exceptional nature for granting exemption.

Additionally, please note that pursuant to Rule 18 of the Insurance Rules 2017 (“Insurance Rules”), no insurer shall reinsure facultatively outside Pakistan any insurance business or any part thereof underwritten by it in Pakistan without the permission of the Securities Exchange Commission of Pakistan (“SECP”). However, SECP may grant permission under Rule 18(2) of the Insurance Rules in any of the following circumstances: (a) the insurance or any part thereof is in excess of the insurer‘s treaty arrangements, and SECP is provided with documentary evidence that such excess cannot be reasonably placed within Pakistan; (b) the insurance business, although covered by a treaty arrangement, shall be desired to be reinsured facultatively for protecting the treaty or for any other special reason: provided that such facultative reinsurance shall not run contrary to subsisting contractual obligations under the treaty; and (c) the insurance business is of special nature and there are no treaty arrangements for it. Thus, the aircraft located in Pakistan must be insured/reinsured in Pakistan unless an exemption is obtained as set out above.

Panama

As we mentioned above, all the operators that wish to use their RPAs for commercial purposes should obtain, before the beginning of their commercial activities, the Operation Certificate from the AAC, and being one of the requirements for its procurement, the obtaining of a third-party liability insurance policy.

Philippines

Yes. There is a requirement to have a Certificate of Insurance covering the RPA, the RPA Controllers and third party liability. No person may operate an RPA for commercial operations unless the person holds an RPAS Operator Certificate, which must have an RPA insurance/Third Party Liability (TPL).  A Certificate of Insurance covering the RPA to be used, RPA Controllers, and third party liability must be submitted before a certificate for commercial RPA operators will be issued.  

Portugal

UAS with a maximum operating mass of more than 900 grams must have a civil liability insurance policy.

The mandatory conditions for the said insurance policy have not yet been determined by the Portuguese authorities. Thus, UAS operators are not required to take such insurance policy.

Puerto Rico

There is no state legislation covering this in Puerto Rico.

Romania

It depends upon the weight of the UAS. According to the Regulation (EC) no. 785/2004 of the European Parliament and of the Council of 21 April 2004 on insurance requirements for air carriers and aircraft operators, it is mandatory to have an insurance policy for all the aircraft that have an MTOM (maximum take-off mass) exceeding 20 kg.

In the case of a model aircraft with an MTOM of less than 20 kg, the insurance is optional.

Air carriers and aircraft operators shall be insured in accordance with this Regulation as regards their aviation-specific liability in respect of passengers, baggage, cargo and third parties. The insured risks shall include acts of war, terrorism, hijacking, acts of sabotage, unlawful seizure of aircraft and civil commotion.

South Africa

Yes. A UAS must be adequately insured for third party liability. Registered owners or operators of aircraft must have insurance for damage or loss caused by an aircraft to any person or property on land or water.

Spain

Although European regulations state that the insurance policy must be obtained, those leave to the Member States the requirements and restrictions for these insurances.

RD 1036/2017, which part has not been yet repealed or replaced by the Project Royal Decree, sets forth the obligation for the UAS operator to subscribe and maintain an insurance policy or any other equivalent financial guarantee to operate UAS. This insurance must be specific for the aviation industry because drones fall under the category of “aircraft” under the Spanish law; therefore, a simple insurance liability is not enough. It would be necessary to subscribe a specific insurance often referred to as third party liability, which must cover operators for damage caused by its aircraft or its payload to the ground (goods and physical damages) and to other airspace users.

The fact that the operator has subscribed the relevant insurance policy and that this is still in force needs to be proven before the AESA before starting its operations.

Switzerland

Swiss law requires any operator (which does not necessarily correspond to its legal owner) of UAS between 0.5kg and 150kg to enter into a third-party liability insurance policy covering at least one million Swiss francs. Only third-party liability insurance is mandatory for the operator, whether this is an individual person or a legal entity. Insurance of the UAS itself is optional.

As of June 2020, the New EU Drone Regulations will apply (see Miscellaneous and Most Recent Changes below).

Turkey

Yes, except for recreational operations of UASO’s and UAS1’s, a third party liability insurance which must be in compliance with the CAA regulation of 15.11.2005 governing the standards of third party liability insurance policies of aircrafts is mandatory for all commercial UAS operations and for all type of operations of UAS2’s and UAS3’s.

United Kingdom

United States of America

Generally speaking, current FAA regulations do not require insurance for small or large UAS. However, a waiver or exemption could require that the owner or operator obtain insurance.