Drone use has opened a whole new market for insurance carriers.  While many are using the drones for pleasure use (taking pictures for personal enjoyment)  others are using them commercially.

Before you start flying your drone, be sure to know the rules especially if you plan on using it commercially.

Drones are being used for border patrol, filming,  news gathering, crop dusting, search and rescue, power line patrol and land surveying.  Some of these tasks pose a unique challenge. Even insurance companies are starting to use drones to inspect properties and inspect claims where access is limited.

According to National Underwriter Property  & Casualty publication, drones can also play a key role after regional natural events or disasters that may not cause widespread damage, but still affect the property of hundreds of policyholders. In the wake of events such as tornadoes or hailstorms damaging small towns, drones can provide a more rapid response to assess damage, leading to faster payment of claims.

 

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Property Casualty 360

“The aviation insurance marketplace offers UAS specific coverage for all exposures related to drones,” said Van Meter. And the market for drone insurance is competitive, robust and evolving.

Aviation specific insurance products designed for drone operations, include:

  • Physical damage (hull), which includes the drone, cameras, sensors, ground station.
  • Liability.
  • Aviation Commercial General Liability.
  • Aviation Products Liability.
  • Non-owned Aviation Liability.

High limits are available:

  • Hull/physical damage up to $1 million.
  • Liability up to $300 million.

ISO and coverage on standard market policies:

  • ISO forms released June 2015 include exclusions and write backs.
  • Used on standard market forms (very narrow and full of exclusions).
  • Unknowledgeable companies are adding drone cover to regular Commercial General Liability policies.

Hundreds of realized and unrealized uses for drones — border patrol, filming, news gathering, crop dusting, search and rescue, power line patrol and land surveying — pose unique challenges.

The primary business cases for P&C insurance use of drones are for routine property assessment and disaster management, according to the Washington, D.C.-based National Association of Mutual Insurance Companies.

Rather than subject its personnel to undue risk, an insurance company can use a drone to examine property with limited access. This can provide data more quickly and with fewer hazards to company employees.

Insurance companies are now exploring the use of drone in claims appraisals in major disasters, where the extent of the damage may exceed the number of available inspectors and be inaccessible.

Drones can also play a key role after regional natural events or disasters that may not cause widespread damage, but still affect the property of hundreds of policyholders. In the wake of events such as tornadoes or hailstorms damaging small towns, drones can provide a more rapid response to assess damage, leading to faster payment of claims.