Just add server_default or default argument to the column fields:
created_on = db.Column(db.DateTime, server_default=db.func.now())
updated_on = db.Column(db.DateTime, server_default=db.func.now(), server_onupdate=db.func.now())
I prefer the {created,updated}_on column names. 😉
SQLAlchemy docs about column insert/update defaults.
[Edit]: Updated code to use server_default arguments in the code.
[Edit 2]: Replaced onupdate with server_onupdate arguments.