Drones. Are they getting ready to really take off?
Aviation insurance companies have worked rapidly to create policies that meet the needs of the industry. Companies such as AIG, Allianz, Global Aerospace and USAIG have been leading the market.
One of the challenges for insurers is to properly underwrite and price policies based upon a limited collection of loss data. It further complicates matters considering the wide array of uses in which drones could be utilized.
A policy can be written for the drone operator to cover both physical damage to the drone and liability exposures stemming from third-party bodily injury or property damage. If you elect to contract drone services to a third-party, a nonowned aviation liability policy to include drones should be purchased. It is also recommended to only contract with drone operators who have obtained the Section 333 exemption.
The cost of these policies can vary from a few hundred dollars to a few thousand, and depends on several factors such as; type of drone, scope of use, operator experience, and desired liability limit(s).
The non-aviation insurance industry will normally exclude all coverage for drone operations. It is vitally important to partner with an experienced insurance broker who understands the aviation industry, has direct access to the marketplace, and recommends the coverage you need.
If you have any questions about obtaining coverage for your drone or non-owned drone exposure, please contact Alison Wynne, firstname.lastname@example.org, or Christopher Fostiak, email@example.com from the Hays Aviation Practice. If you would like to learn more about drones please view our complete issue of FOCUS here.