Drone Insurance Doesn’t Have to Be Sky High

Drone Insurance Doesn’t Have to Be Sky High

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Drones are a fun new “toy” that many businesses are using to survey worksites and perform other aerial photography tasks. But they may present a new insurance challenge for your business. Would you be covered if your drone caused an accident? Probably not. Drones aren’t covered under most standard general liabilities policies. But don’t worry; the cost is pretty reasonable. Here are some things to consider.

What kind of trouble can a drone cause?

You may think the risk is low, and it may well be. But you don’t want to be the company whose drone takes out a power line, injures a child, damages someone else’s property or causes a car wreck. These kinds of drone accidents happen all the time. And what would you do if you drone were lost or stolen – along with its potentially valuable and confidential photographic contents?

Coverage options

Some carriers are adding extensions for drones in their general liability policies, so that’s one option to investigate. You also can look for a specific drone insurance policy that covers physical damage as well as liability.

The drone policies aren’t terribly expensive. The ones we’ve written have been at or under $1,000 annually. And the costs are going down as more underwriters get into the game. Note: The policies do not cover the value of the intelligence gathered by the drone.

Getting prepared

  • How much time will you fly in a year?
  • What’s the maximum distance and flight speed?
  • What kind of training do operators have?
  • Do you have a drone safety program and procedure in place?
  • Like most new “toys,” drones require a little planning to enjoy in full. You’ll be much more confident using yours when you know you’re covered. Happy flying!

     

    By Tammy Doherty, Account Manager, Property and Casualty, The Miller Group

    See also:
    Property and Casualty Insurance Basics

    Are Your Safety Practices Up to Snuff?

    Claims and Timely Reporting

     

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