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The site is insured.
What about the drone above it?

Most contractors already know they need CAR / EAR for construction and fit-out works — it's usually written into the contract. But more and more survey, building-inspection and site-monitoring work is now done by drone, and that's the gap most people haven't thought through: your Public Liability policy very likely excludes "aircraft" outright, and a drone incident may not be covered at all.

What Engineering Insurance covers

CoverWhat it coversTypical buyer
Contractors' All Risks (CAR)Physical damage to works-in-progress (materials, structures), plus third-party bodily injury / property damage liability arising from the worksBuilding, renovation and demolition contractors
Erection All Risks (EAR)Damage during installation, testing and commissioning of mechanical/electrical plant — the M&E counterpart to CARM&E contractors, large plant installations (power plants, factory equipment)
Machinery breakdown coverSudden, unforeseen machinery damage (as distinct from "all risks" perils) — boiler & pressure vessel cover can be bundled inProperty/factory owners with fixed mechanical/electrical plant
Electronic Equipment Insurance (EEI)All-risks physical damage cover for electronic/computer/control systemsBusinesses dependent on electronic systems

It's contract-driven, not a legal mandate

There's no general Hong Kong ordinance forcing contractors to buy CAR / EAR — the only genuinely mandatory cover is Employees' Compensation Insurance (Cap. 282). But standard construction contracts — like the Housing Authority's General Conditions of Contract for Building Works, clauses 5.14 and 5.33 — write the requirement to hold CAR straight into the contract terms before work can even start. So without a contract clause you don't strictly have to buy it, but once there's a clause, it's non-negotiable.

Drone Engineering Works — the coverage gap you may not have considered

Survey, building inspection, slope monitoring, progress tracking — drone use in Hong Kong's engineering sector is becoming routine: the Hong Kong Institution of Engineers has reported drone photogrammetry used for 3D point-cloud survey modelling on the Loop's Bridge ST01 project, and the Geotechnical Engineering Office under CEDD is piloting drone-based slope inspection at scale. As "aerial engineering work" spreads, the coverage gap around it matters more.

Drone categoryThird-party liability insurance
Category A1 (≤250g)No insurance requirement under law
Standard A2 (250g–7kg, within standard limits)Not yet mandatory — a future HK$5 million minimum is already written into law, pending a Gazette commencement notice from the Director-General of Civil Aviation
Advanced Operations (all Cat. B/C, or any flight beyond standard limits)Legally mandatory — minimum HK$10 million (Cat A/B), HK$15 million (Cat C, ≤75kg), or HK$20 million (Cat C, >75kg)

Source: Small Unmanned Aircraft Order (Cap. 448G) ss. 11(1)(c), 12; CAD Safety Requirements Document for Small Unmanned Aircraft Operations, §9.1–9.2.

Whole-site survey, building inspection, beyond-visual-line-of-sight flights — very likely already "legally required"

Engineering-focused drone work — wide-area aerial survey, beyond-visual-line-of-sight flights, flights near restricted zones — will in practice often qualify as Advanced Operations or Cat B/C flights, meaning insurance is very likely already a legal requirement, not just a "nice to have." Meanwhile your company's Public Liability policy typically carries an aircraft exclusion and may not cover a drone-related claim at all — these are two separate things to check.

Three things people commonly get wrong

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Public Liability ≠ drone cover

The "aircraft" exclusion in a standard PL policy very likely catches drones too — you need a dedicated product for drone third-party liability.

🛠️

CAR/EAR doesn't cover the equipment itself

CAR/EAR cover the "works" — works-in-progress and materials — not equipment the contractor brings on site, like a drone, if it's damaged.

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A flawed survey/inspection report is a different risk

If a drone survey or inspection report turns out to be professionally negligent, that's a Professional Indemnity matter — separate from in-flight third-party liability or hull damage, and worth planning for separately.

Which businesses should pay closest attention?

✓ Priority

  • Building, renovation and demolition contractors — CAR/EAR usually already required by contract
  • M&E and plant installation contractors — EAR applies
  • Engineering firms / surveyors using drones for survey, inspection or site monitoring
  • Property/factory owners with fixed mechanical/electrical plant — machinery breakdown, boiler cover

△ Lower priority

  • Pure office/services businesses with no construction or site work
  • Purely recreational drones under 250g (Cat A1) — no legal insurance requirement yet, though still worth understanding your use case

Engineering + Drone Insurance FAQ

Does Hong Kong law require CAR insurance for construction/renovation works?
No. There is no general Hong Kong ordinance that compels a contractor to hold CAR or EAR insurance. The only genuinely mandatory cover is Employees' Compensation Insurance (Cap. 282). But almost every construction contract — e.g. the Housing Authority's General Conditions of Contract for Building Works, clauses 5.14 and 5.33 — contractually requires it before work can start.
If we use a drone for site survey or building inspection, does the law require insurance?
It depends on your operation category. Under Cap. 448G and CAD's Safety Requirements Document, Advanced Operations (all Cat B/C flights, or any flight beyond standard limits) legally require third-party liability insurance — minimum HK$10 million (Cat A/B), HK$15 million (Cat C ≤75kg), or HK$20 million (Cat C >75kg). Standard Category A2 (250g–7kg, within standard limits) is not yet mandatory — a future HK$5 million minimum is already in law, pending a Gazette commencement date. Category A1 (250g or below) has no requirement. Most engineering drone use will in practice qualify as Advanced Operations, so insurance is very likely already required.
We already have Public Liability insurance — does that cover our drone?
Very likely not. Standard PL policies typically carry an aircraft exclusion, and drones fall within the regulated aircraft category under Hong Kong's civil aviation framework — an insurer may decline a drone-related claim on that basis. A dedicated drone third-party liability product is the safer route.
Does CAR / EAR cover the drone itself?
No. CAR / EAR cover the works themselves — works-in-progress and materials — not equipment the contractor brings on site, such as a drone. Damage to that equipment needs to be planned for separately.

The site is insured. The drone above it should be too.

We'll help you check what your construction contract actually requires, and where the gap sits around drone operations.

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