Aviation Liability Insurance

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Item Information

Revision History

Date Status ID Title
2018-06-21 Active G2030C Aviation Liability Insurance (2018-06-21) G2030C
2014-06-26 Superseded G2030C ARCHIVED: Aviation Liability Insurance (2014-06-26) G2030C
2008-05-12 Superseded G2030C ARCHIVED: Aviation Liability Insurance (2008-05-12) G2030C

Remarks – Recommended Use of SACC Item

Use the following clause in contracts where the requirement includes operation of an aircraft, operation of airport premises, products or services that are provided and/or intended for flight related activities.

Whenever the liabilities of Canada and the contractor with respect to the contract are difficult to separate, contracting officers must replace paragraph 2.(a) by the following option:

"Additional Named Insured: Canada is added as an additional named insured, but only with respect to liability arising out of the performance of the Contract."

Contracting officers must choose options (i), (j), (k), (l), (m) and/or (o) in paragraph 2 when applicable to their specific contract.

Contracting officers must consult PWGSC Risk Management Advisory Services, at: NCR.RMIAS-SCGRA@pwgsc.gc.ca if the suggested limit of $5,000,000 per accident or occurrence is not considered adequate.

Legal text for SACC item

  1. The Contractor must obtain Aviation Liability Insurance for Bodily Injury (including passenger Bodily Injury) and Property Damage, and maintain it in force throughout the duration of the Contract, in an amount usual for a contract of this nature, but for not less than $5,000,000 per accident or occurrence and in the annual aggregate.
  2. The Aviation Liability policy must include the following:
    1. Additional Insured: Canada is added as an additional insured, but only with respect to liability arising out of the Contractor's performance of the Contract. The interest of Canada should read as follows: Canada, represented by Public Works and Government Services Canada.
    2. Notice of Cancellation: The Contractor will provide the Contracting Authority thirty (30) days prior written notice of policy cancellation or any changes to the insurance policy.
    3. Cross Liability/Separation of Insureds: Without increasing the limit of liability, the policy must protect all insured parties to the full extent of coverage provided. Further, the policy must apply to each Insured in the same manner and to the same extent as if a separate policy had been issued to each.
    4. Contractual Liability: The policy must, on a blanket basis or by specific reference to the Contract, extend to assumed liabilities with respect to contractual provisions.
    5. Employees and, where applicable, Volunteers must be included as Additional Insured.
    6. Aviation Passenger Liability and inclusive Medical Payments: If sub-limits are applicable to Contractor's policy conforming to international carriage agreements or otherwise, such sub-limits must in any event be, not less than, $300,000 per person. The per accident limit should be no less than $300,000 multiplied by the number of passengers.
    7. If the policy is written on a claims-made basis, coverage must be in place for a period of at least 12 months after the completion or termination of the Contract.
    8. Employers Liability (unless we have confirmation that all employees are covered by Worker's compensation WSIB or similar program)
    (Contracting officers must insert the applicable options below and renumber accordingly.)
    1. Hangarkeeper's Liability: To cover loss of and/or damage to aircraft on the ground in the care, custody or control of the Contractor.
    2. Products and Completed Operations: To cover liability arising from the sale and service of aviation products, assembly and repair activities, in connection with the Work performed by or on behalf of the Contractor.
    3. Airport Tenants' Legal Liability Broad Form: To protect the Contractor for liabilities arising from its occupancy of leased airport premises.
    4. Non-owned Aircraft Liability: To protect the Contractor for liabilities arising from its use of aircraft owned by other parties including Canada.
    5. Control Tower Liability: To cover for all liabilities arising from the ownership and/or operations of air traffic control towers
    6. Permission to Transport Hazardous Goods. The Insured must also obtain all the applicable provincial or federal permission to transport hazardous material in addition to this endorsement.
    7. Litigation Rights: Pursuant to subsection 5(d) of the Department of Justice Act, S.C. 1993, c. J-2, s. 1, if a suit is instituted for or against Canada which the Insurer would, but for this clause, have the right to pursue or defend on behalf of Canada as an Additional Named Insured under the insurance policy, the Insurer must promptly contact the Attorney General of Canada to agree on the legal strategies by sending a letter, by registered mail or by courier, with an acknowledgement of receipt.
      For the province of Quebec, send to:
      Director Business Law Directorate,
      Quebec Regional Office (Ottawa),
      Department of Justice,
      284 Wellington Street, Room SAT-6042,
      Ottawa, Ontario, K1A 0H8

      For other provinces and territories, send to:
      Senior General Counsel,
      Civil Litigation Section,
      Department of Justice
      234 Wellington Street, East Tower
      Ottawa, Ontario K1A 0H8

      A copy of the letter must be sent to the Contracting Authority. Canada reserves the right to co-defend any action brought against Canada. All expenses incurred by Canada to co-defend such actions will be at Canada's expense. If Canada decides to co-defend any action brought against it, and Canada does not agree to a proposed settlement agreed to by the Contractor's insurer and the plaintiff(s) that would result in the settlement or dismissal of the action against Canada, then Canada will be responsible to the Contractor's insurer for any difference between the proposed settlement amount and the amount finally awarded or paid to the plaintiffs (inclusive of costs and interest) on behalf of Canada.