{"id":1376,"date":"2019-12-06T10:08:39","date_gmt":"2019-12-06T10:08:39","guid":{"rendered":"https:\/\/www.dronesvilla.com\/?p=1376"},"modified":"2021-12-08T16:03:15","modified_gmt":"2021-12-08T16:03:15","slug":"drone-insurance","status":"publish","type":"post","link":"https:\/\/www.dronesvilla.com\/drone-insurance\/","title":{"rendered":"Your Pocket-Sized Guide to Drone Insurance"},"content":{"rendered":"\n
\"\"\/<\/figure><\/div>\n\n\n\n

As a valuable piece of property, and one that frequently\ncomes in potentially dangerous contact with other people, you may be wondering\nabout insuring your drone.<\/p>\n\n\n\n

Do you need to get insurance for your drone? What are the options available? Are the rules the same for recreational drones and commercial drones<\/a>?<\/p>\n\n\n\n

These are just a few of the questions that people ask themselves\nwhen they buy their drones. And we are going to address as many as we can in\nthis article.<\/p>\n\n\n\n

How Drone Insurance Works<\/h2>\n\n\n\n

When you hear the term \u201cdrone insurance\u201d, the chances are\nhigh that what the speaker is referring to is \u2018drone liability insurance\u2019.<\/p>\n\n\n\n

Drone liability insurance covers the drone owner or pilot,\nor his business, from accidental injuries to pedestrians or privately owned\nproperty.<\/p>\n\n\n\n

A majority of commercial drone liability insurance is sold\nto commercial videographers, photographers, real estate sales agents, and\nagricultural companies.<\/p>\n\n\n\n

Does this mean recreational drone operators have no need for\ndrone liability insurance?<\/p>\n\n\n\n

Not exactly.<\/p>\n\n\n\n

In many areas, recreational drone pilots are required by law\nto insure their drones before getting them registered.<\/p>\n\n\n\n

Whether or not you live in an area that compels you to get\ninsurance for your drone, you want to consider getting some personal liability\ncoverage for your drone.<\/p>\n\n\n\n

Although some might classify your hobby drone<\/a> as super cool fun toys, the truth is that your recreational unmanned vehicle is a high sophisticated piece of hardware\u2014more so than the average toy.<\/p>\n\n\n\n

It makes sense that a huge number of personal drone\noperators purchase personal drone liability insurance, when you look at things\nfrom that perspective.<\/p>\n\n\n\n

There are several ways a drone owner can buy a drone\ninsurance policy.<\/p>\n\n\n\n

There are many options they can choose from, including: a\nyearly policy, riders to any current business policy, and also a short term\npolicy.<\/p>\n\n\n\n

Some drone insurance businesses go as far as selling\npolicies on an hour-to-hour basis\u2014an attractive option for you, if you don\u2019t\nfrequently fly your drone and would like to cut costs.<\/p>\n\n\n\n

Who Needs Drone Insurance?<\/h2>\n\n\n\n

We would all like to think that we are superhuman in at\nleast one respect. But the truth remains that even at our most accomplished\ntasks; we are still liable to making mistakes.<\/p>\n\n\n\n

Also, equipment failure could happen at any time.<\/p>\n\n\n\n

Even the most skilled drone pilots are subject to these realities\nwhich can befall anybody. And if you want to save yourself from being liable to\nsignificant legal fees, then you need drone coverage or insurance.<\/p>\n\n\n\n

It\u2019s for this reason that, in many areas, commercial drone\noperators are compelled by regulations in place to get insurance for their\ndrones, as well as comply with airspace rules.<\/p>\n\n\n\n

The risks that drone insurance covers can be categorized\ninto three broad groups:<\/p>\n\n\n\n

  1. Property\nDamage: <\/strong>Examples of this are many. Your drone flies into a power line and\nthis causes a nearby building to go up in flames; your drone goes off midair\nand drops onto a vehicle, causing damage.<\/li>
  2. Bodily\nInjury: <\/strong>An example of an incident that falls under this include: your drone\nfalling out of the sky and into a group of people, causing injuries to one or\nmore peoples.<\/li>
  3. Invasion\nof Privacy: <\/strong> In this scenario, a\nperson accuses you of spying on them with your drone or that with your device\nyou have captured sensitive images of them in their private residence.<\/li><\/ol>\n\n\n\n

    Drone insurance can be considered a by-product of aviation\ninsurance. Aviation risks are given special consideration as specialty risks\nwith extreme financial exposure.<\/p>\n\n\n\n

    And the same can be said about drones, since they can\npotentially cause property damage, serious body injuries, and even death.<\/p>\n\n\n\n

    Policies are therefore treated with caution by insurance\nproviders. For example, while some insurance policy coverage meant for photography\nand videography will acknowledge drone use, the insurance company has to be\ninformed of any additional drone related activity.<\/p>\n\n\n\n

    Not every insurance provider will cover drone usage, and\nproviders which do usually require additional compliances to hedge the risk.<\/p>\n\n\n\n

    Perhaps an example would illustrate this point nicely:<\/p>\n\n\n\n

    A court case in California over a 2016 wedding-UAV accident highlights\nthe dangers and possible openings for claim denials when drone coverage is not\nclearly understood by the drone owner.<\/p>\n\n\n\n

    A wedding photography business by name Hollycal Production,\nInc. was covering an outdoor ceremony in Corona, California. They were using\ndrones which they considered an activity that was routine to their operations.<\/p>\n\n\n\n

    Then everything went south when the drone operator lost\ncommand and the drone flew into a wedding guest.<\/p>\n\n\n\n

    The guest, a woman, suffered permanent damage to one eye.<\/p>\n\n\n\n

    The insurance provider, Philadelphia Indemnity Insurance Co\u2014whom\nHollycal had a policy with\u2014denied the claim. The US District Court sided with\nthe insurance company and agreed that the drone was not a regular part of\nphotography practice. They believed that the drone instead was subject to the\naviation exclusion in the Hollycal\u2019s insurance plan.<\/p>\n\n\n\n

    Types of Drone Insurance<\/h2>\n\n\n\n

    You need to address liability and property worries when\ntrying to decide on which drone policy to go for. <\/p>\n\n\n\n

    You want to ensure you are covered against liability claims\nfor accidental drone incidents and pilot mistakes.<\/p>\n\n\n\n

    You also need to make sure to cover the investment put into\nyour UAV. Drone prices can go all the way up to several thousands of dollars.<\/p>\n\n\n\n

    Commercial Drone\nLiability Insurance<\/strong><\/p>\n\n\n\n

    Commercial general liability insurance takes care of the\nexpenses for accidental injury or property destruction which result from the\nuse of your drone.<\/p>\n\n\n\n

    This policy covers bodily injury, disabilities, and even\ndeath that comes about due to a drone crashing.<\/p>\n\n\n\n

    It also covers damage to power and other utility supply\nlines, cars, roofs and other private property that your drone damages while you\nuse it.<\/p>\n\n\n\n

    Commercial Drone Hull\nInsurance<\/strong><\/p>\n\n\n\n

    \u201cHull\nInsurance\u201d in aviation circles designates that which applies to accidental damage\nto the aircraft\u2014that is your drone, in this case\u2014while it is operating. <\/p>\n\n\n\n

    This is a\npolicy offered on its own, and one that every recreational and commercial drone\nowner should consider. Costs will vary between insurance prividers but they\nusually have a deductible. <\/p>\n\n\n\n

    A deductible\nis an amount you have to pay for what is covered, before your insurance plan\nstarts to pay as agreed.<\/p>\n\n\n\n

    If you have\nmore than one drone and wish to insure both, you should expect the costs to\nincrease accordingly.<\/p>\n\n\n\n

    Drone Insurance for Fire & Theft<\/strong><\/p>\n\n\n\n

    Fire and theft\nare two perils that are usually taken care of through policies catering to\nbusiness property insurance or a Business Owner\u2019s Policy. This is a policy that\ncombines property and liability in one plan.<\/p>\n\n\n\n

    Prices for\npremiums will vary with providers and can reach a few hundred dollars. Prices\nwill also increase with the value of the drone and related equipment in\nquestion.<\/p>\n\n\n\n

    Standalone Drone Insurance Policies<\/strong><\/p>\n\n\n\n

    Standalone\ninsurance policies are those that provide coverage just for the risks that come\nwith drone photography and drone use.<\/p>\n\n\n\n

    Policies\nprices vary and could range from several hundred dollars to $1000 annually to\ninsure the typical drone with coverage going up to $1 million.<\/p>\n\n\n\n

    Standalone\ndrone insurance policies are usually tailored for smaller, lighter drones that\nweigh below 15 pounds which are used in by commercial photographers.<\/p>\n\n\n\n

    They usually\ndon\u2019t cover any loss of the drone or damage.<\/p>\n\n\n\n

    The risk\nwith this sort of insurance policy is that it leaves several gaps in other\nparts of your business which merit coverage.<\/p>\n\n\n\n

    On-Demand Hourly Policies<\/h3>\n\n\n

    <\/p>\n

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    <\/p>\n

    Some startups have begun filling in the perceived gaps in the industry.<\/p>\n

    <\/p>\n

    For example, Thimble<\/a>, formerly known as
    Verifly, a drone insurance startup that is headquartered in New York, offers
    drone insurance policies based on hours, and that can be conveniently bought
    with an app.<\/p>\n

    <\/p>\n

    You can sign up for Thimble and then describe a quarter-mile flight path on
    a map.<\/p>\n

    <\/p>\n

    They will assess the possible risks and then present a price for a one-hour,
    four-hour, and eight-hour policy.<\/p>\n

    <\/p>\n

    The policy you get can also be quickly downloaded to be used whenever you
    need to show proof of insurance.<\/p>\n

    <\/p>\n

    Currently, Thimble is offering liability coverage that ranges between $1
    million and $2.5 million which can be bought for as little as $10 an hour.<\/p>\n

    <\/p>\n

    They also give policies for $10,000 of personal injury protection in cases
    involving violation of privacy.<\/p>\n

    <\/p>\n

    <\/p>\n

    <\/p>\n

    Factors that Affect Drone Insurance<\/strong> Prices<\/h2>\n

    <\/p>\n

    <\/p>\n

    There are
    \nmany factors that come together to estimate the pricing for drone insurance.<\/p>\n

    <\/p>\n

    <\/p>\n

    As you go in
    \nsearch of an insurance policy, be prepared to explain to your business use of
    \nthe drone, for example, and the typical mapped areas where you intend flying.<\/p>\n

    <\/p>\n

    <\/p>\n

    Your experience
    \nand any training will also be brought to the fore before any costs will be
    \narrived at for a drone liability insurance policy.<\/p>\n

    <\/p>\n

    <\/p>\n

    The insurer will typically want to know:<\/p>\n

    <\/p>\n

    <\/p>\n