A Shenzhen-based aircraft developer has obtained a landmark insurance policy that clears a key regulatory hurdle for flying its electric vertical take-off and landing (eVTOL) aircraft in Hong Kong. The policy, underwritten in Shenzhen but issued in Hong Kong, covers the piloted vehicle for one year with a total liability of HK$20 million (US$2.6 million). Yivtol, the developer, says this is the first cross-border insurance deal for an eVTOL aircraft, a step toward making such vehicles commercially viable. eVTOL aircraft, often called flying cars, are designed for short urban trips and can take off and land like a helicopter but are quieter and produce no emissions. The policy covers operations in Hong Kong, where regulations for these vehicles are still being developed. The insurance is seen as a major milestone, as many insurers have been hesitant to cover emerging aviation technologies. The one-year policy runs until June 2027, indicating a long-term commitment from the underwriter. Industry observers say this could encourage other companies to seek similar coverage and accelerate the adoption of eVTOL vehicles for passenger transport. Hong Kong's dense urban environment and limited land make flying vehicles an attractive option for reducing traffic congestion. However, safety and regulatory challenges remain before such flights become common. Yivtol has not announced specific flight plans but expects to begin test flights soon. The company hopes the insurance will help gain public trust and government approval for commercial operations.