New Zealand CAA Drone Insurance Requirements

Complete 2025 guide to Civil Aviation Authority regulations, compliance obligations, and insurance requirements for drone operations in New Zealand

Important: CAA Compliance is Mandatory

Failure to comply with CAA requirements can result in fines up to $9,000 for individuals or $90,000 for companies. Insurance may be voided for non-compliant operations.

CAA Drone Categories Quick Reference

Part 101 - Recreational

Maximum Weight: 25kg MTOW
Pilot Certificate: Not required
Registration: Not required
Insurance: Recommended
Purpose: Personal use only

Part 102 - Commercial

Maximum Weight: 25kg MTOW
Pilot Certificate: Required
Registration: Required
Insurance: Often Required
Purpose: Commercial operations

Part 101 - Recreational Drone Requirements

What Part 101 Covers

Eligible Activities:

  • Personal recreation and hobby flying
  • Photography for personal use
  • Educational activities (non-commercial)
  • Family event documentation
  • Learning to fly and practice

Not Permitted:

  • Any income-generating activity
  • Commercial photography/videography
  • Business or professional services
  • Flying for employers or clients
  • Monetized content creation

Part 101 Standard Operating Conditions

Flight Restrictions:

Maximum Height: 120m (400ft) above ground level
Visual Line of Sight: Pilot must maintain direct visual contact
Daylight Hours: Civil twilight to civil twilight only
Weather: Not in cloud, rain, or low visibility

Distance Requirements:

People: At least 30m horizontally from uninvolved people
Vehicles: At least 30m from vehicles, boats, structures
Airports: 4km from any aerodrome
Helicopter Routes: Check local NOTAMs and restrictions

Part 101 Insurance Requirements:

While insurance is not legally required under Part 101, it is strongly recommended. Operators are personally liable for any damage or injury caused by their drone operations.

Part 102 - Commercial Drone Requirements

When Part 102 Certification is Required

Commercial Operations (Any Payment):

  • • Real estate photography and videography
  • • Wedding and event coverage
  • • Construction monitoring and inspections
  • • Agricultural surveying and spraying
  • • Infrastructure inspections
  • • Search and rescue operations
  • • Media production and filming
  • • Stock photography sales
  • • Training and educational services
  • • Any bartering or exchange of services

Special Operations (Even If Free):

  • • Flying over crowds or assemblies
  • • Operations beyond visual line of sight
  • • Night flying operations
  • • Flying in controlled airspace
  • • Operations near airports
  • • Flying above 120m altitude
  • • Drone racing (organized events)
  • • Research and scientific operations
  • • Government or council work
  • • Emergency services support

Part 102 Certification Process

Step 1: Theory Examination

  • • 40 multiple-choice questions
  • • 70% pass mark required
  • • Covers regulations, safety, weather
  • • Valid for 24 months
  • • Cost: $165.60 including GST

Step 2: Practical Flight Test

  • • Demonstrate flying competency
  • • Emergency procedures
  • • Pre-flight planning and checks
  • • Risk assessment skills
  • • Cost: $278.40 including GST

Additional Requirements:

  • • Aircraft registration ($69.60 per drone)
  • • Operating procedures manual
  • • Risk assessment methodology
  • • Maintenance program
  • • Medical certificate (basic)
  • • English language proficiency
  • • Annual competency demonstration
  • • Ongoing record keeping

Part 102 Insurance Requirements

CAA Insurance Position:

While CAA doesn't mandate insurance for Part 102 operations, many factors effectively require it:

  • • Client contract requirements
  • • Professional liability exposure
  • • Equipment protection needs
  • • Business continuity requirements

Typical Commercial Requirements:

Public Liability: $5M - $20M minimum
Professional Indemnity: $1M - $5M typical
Equipment Coverage: Full replacement value
Business Interruption: Loss of income protection

Industry-Specific Needs:

Real Estate: Privacy liability important
Construction: Site-specific risk coverage
Agriculture: Crop damage protection
Emergency Services: Enhanced liability limits

Ongoing Compliance Obligations

Record Keeping Requirements

Part 101 - Recreational:

Minimal Requirements:

  • • No formal record keeping required
  • • Recommended: basic flight log
  • • Keep proof of purchase for insurance
  • • Document any incidents or accidents

Part 102 - Commercial:

Comprehensive Requirements:

  • • Detailed flight logs for every operation
  • • Pre-flight and post-flight checklists
  • • Risk assessments for each operation
  • • Maintenance records and schedules
  • • Incident and accident reports
  • • Pilot proficiency and training records
  • • Insurance certificates and renewals

CAA Inspection Rights:

CAA inspectors can request records at any time. Part 102 operators must maintain records for at least 3 years and make them available for inspection. Non-compliance can result in certificate suspension or revocation.

Incident Reporting Requirements

Mandatory Reporting (All Operators):

  • • Any injury to persons
  • • Damage to other people's property
  • • Aircraft separation incidents
  • • Airspace infringements
  • • Emergency landings at aerodromes
  • • Loss of control resulting in damage

Enhanced Reporting (Part 102):

  • • Any occurrence affecting safety
  • • Equipment malfunctions
  • • Near-miss incidents
  • • Security breaches or concerns
  • • Dangerous goods incidents
  • • Wildlife strikes

Reporting Timeline:

Immediate (24 hours):
  • • Serious injuries or fatalities
  • • Significant property damage
  • • Emergency service involvement
Within 72 hours:
  • • All other reportable occurrences
  • • Follow-up detailed reports
  • • Supporting documentation

Penalties and Enforcement

CAA Penalty Structure

Violation Type Individual Fine Company Fine Other Consequences
Operating without Part 102 certificate $9,000 $90,000 Certificate application ban
Unregistered aircraft operation $5,000 $50,000 Aircraft confiscation possible
Airspace violations $5,000 $50,000 Criminal prosecution possible
Failure to report incidents $3,000 $30,000 Certificate suspension
Operating outside conditions $3,000 $30,000 Insurance may be voided
Inadequate record keeping $2,000 $20,000 Enhanced monitoring

Additional Consequences:

  • • Criminal prosecution for serious breaches
  • • Certificate suspension or revocation
  • • Equipment confiscation and forfeiture
  • • Court-ordered compensation payments
  • • Prohibition orders preventing future operations

Insurance Implications:

  • • Claims may be denied for non-compliance
  • • Premiums may increase after violations
  • • Coverage may be cancelled
  • • Future insurance may be unavailable
  • • Personal liability for all damages

CAA Enforcement Activities

How CAA Monitors Compliance:

  • Random inspections and audits
  • Investigation of complaints and reports
  • Online monitoring and social media surveillance
  • Cooperation with police and other agencies
  • Airport and airspace monitoring systems
  • Industry reporting and whistleblowing

Recent Enforcement Trends:

2024 Focus Areas:
  • • Commercial operations without certification
  • • Airport security zone violations
  • • Night flying without authorization
  • • Crowded area operations
Increased Penalties:

CAA has signaled stronger enforcement with higher penalty amounts and more frequent prosecutions.

Insurance and CAA Compliance

How Insurance Supports CAA Compliance

Risk Management Benefits:

  • Financial Protection:

    Covers legal costs and fines from compliance failures

  • Professional Support:

    Access to aviation lawyers and regulatory experts

  • Risk Assessment:

    Insurer expertise helps identify compliance risks

  • Training Resources:

    Access to safety and compliance training programs

Compliance Verification:

  • Certificate Verification:

    Insurers verify CAA certificates before providing coverage

  • Operating Procedures Review:

    Assessment of compliance with CAA requirements

  • Ongoing Monitoring:

    Regular checks on certificate validity and compliance

  • Claims Investigation:

    Thorough compliance review during claims process

Insurance Requirements by Compliance Level

Part 101 Compliant Operations

Minimum Recommended: $1M-$2M public liability
Equipment Coverage: Replacement cost preferred
Geographic: Worldwide coverage available
Annual Cost: $120-$600 typically

Part 102 Compliant Operations

Minimum Required: $5M-$20M public liability
Professional Indemnity: $1M-$5M recommended
Business Coverage: Equipment, interruption, cyber
Annual Cost: $1,500-$15,000+ depending on risk

Non-Compliant Operations

Operating without proper CAA compliance voids insurance coverage and exposes operators to:

  • • Complete claims denial
  • • Personal liability for all damages
  • • CAA fines and penalties
  • • Criminal prosecution risk
  • • Equipment confiscation
  • • Future insurance unavailability
  • • Business closure potential
  • • Professional reputation damage

CAA Compliance Checklist

✓ Part 101 Recreational Compliance

✓ Part 102 Commercial Compliance

Regular Compliance Review:

Complete this checklist monthly and before any significant changes to your operations. Keep documentation to prove compliance and review requirements annually or when regulations change.

Getting CAA Compliance Help

CAA Resources

CAA Contact Centre

Phone: 0508 4 FLY SAFE (0508 435 972)

Email: info@caa.govt.nz

Online Resources

Airshare website: www.airshare.co.nz

CAA website: www.caa.govt.nz

Training Providers

Approved training organizations

Part 102 examination centers

Professional Services

Aviation Lawyers

Regulatory compliance advice

Enforcement action defense

Insurance Brokers

Specialist drone insurance advice

CAA-compliant policy design

Consultants

Compliance audits and reviews

Operating procedures development

CAA Requirements FAQ

Do I need CAA certification for recreational drone flying?

No, Part 101 recreational operations don't require CAA certification. However, you must follow all standard operating conditions and can only fly for personal, non-commercial purposes.

What happens if I do one paid job without Part 102 certification?

This is illegal and can result in fines up to $9,000 for individuals or $90,000 for companies. Your insurance will also be void, leaving you personally liable for any damages.

How long does it take to get Part 102 certification?

Typically 4-8 weeks if you're prepared. This includes study time, theory exam booking, practical test scheduling, and certificate processing. Start early if planning commercial operations.

Can CAA require me to have insurance?

While CAA doesn't directly mandate insurance, they can impose it as a condition for special authorizations. Many clients and situations effectively require insurance for commercial operations.

What records do I need to keep as a recreational pilot?

Part 101 has minimal record requirements, but it's wise to keep basic flight logs, proof of insurance, and documentation of any incidents for insurance and safety purposes.

How does CAA find out about non-compliant operations?

Through complaints, incident reports, social media monitoring, airport security, industry reporting, and random inspections. Compliance violations are usually discovered during incident investigations.

Can I appeal CAA enforcement actions?

Yes, you have rights to appeal CAA decisions through the District Court or seek judicial review. However, it's expensive and time-consuming - prevention through compliance is always better.

Ensure Your CAA Compliance with Proper Insurance

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