The matter of insurance is connected to the issuance of a certificate of competency. Any person operating an air transportation company in Canada has to obtain a certificate of competency from the Canadian Transportation Agency.
One of the conditions that has to be met before a certificate of competency can be issued is that the operator has to have the required liability insurance. Now if there is no insurance, the Agency has to suspend or cancel the licence. That is an obligation on its part, whether the service is being operated or not.