Drone Liability Insurance

Drones are increasingly being used for a wide range of business purposes. From Amazon to local real estate agents, drones can help all kinds of businesses improve efficiency and offer services that were never before possible. But along with this technology comes a whole new host of risks to your business and the public, which is why it's important to have the right protection.

Fortunately, a local independent insurance agent can help you find the right drone insurance. They'll get you set up with all the coverage you need to protect your unique business. But first, here's a closer look at drone insurance and when it's necessary.

What Is Drone Liability Insurance?

Drone liability insurance can refer to two different types of liability coverage specifically designed for drone operators. These include:

General liability insurance: This protects you against the cost of third-party lawsuits for claims of bodily injury or personal property damage caused by your drone.
Professional liability insurance: This protects you against the cost of claims of harm to customers or clients caused by professional errors or negligence while operating your drone for commercial purposes.

An independent insurance agent can help you get set up with the right kind of drone liability insurance for your needs.

What Does Drone Liability Insurance Cover?

Drone liability insurance, sometimes called unmanned aircraft insurance, can help protect you against the cost of lawsuits for harm or damage you cause to others with your drone. Whether you use your drone recreationally or commercially, you could be at risk of third-party claims for bodily injury, property damage, or business losses.

Suppose you're a commercial real estate photographer who uses a drone to capture images. If you take a picture of the wrong property and it gets printed, you could cost your client a lot of money, and in turn, they may sue you over it.

Your drone could also cause physical damage to a property or injure someone while you're operating it to capture photographs. Drone liability insurance can reimburse you for the following:

Punitive and compensatory damages
Damages to clients or customers
Arbitration and settlement expenses
Defense costs such as attorney and court expenses
Lost income due to attending a trial or deposition

If you only use a drone for recreational purposes, you won't need professional liability or errors and omissions insurance. Still, having general liability insurance can protect you against accidental bodily injury or property damage to someone else.

Is Drone Insurance Required?

Drone insurance is not currently required in the U.S. for recreational or commercial drone users. However, drone operation poses many risks to businesses and the general public. Aside from the need to protect your assets if something goes wrong, your customers and business partners will likely require you to have drone liability insurance before they agree to do business with you.

Drones can cause serious damage to property and injury to individuals on the ground. Even the best drone operator can run into bad weather or experience a technological malfunction.

Additionally, how you collect and use data with your drone and who has access to it can be even bigger concerns for commercial drone operators. Invasion of privacy claims are increasingly common and are expected to become even more prevalent as drone use increases.

The insurance industry is responding to the rapid expansion of commercial drone use. While there is no indication that commercial drone insurance will be required by law in the near future, failing to speak to your independent insurance agent about how to best cover your drone could have devastating financial consequences for your business. Should an incident occur, having drone liability insurance could provide you with the reimbursement you need to get back on your feet.

Who Needs Drone Insurance?

While drone insurance isn't required by law, it's helpful for professionals who work in a lot of different industries. You might benefit from having drone liability insurance if you work as any of the following:

Commercial photographers
Commercial videographers and filmmakers
Realtors, real estate firms, and real estate agents
Contractors
Home inspectors
Event planners

If you use a drone for any of these professional services, speak with a local independent insurance agent about the benefits of having drone liability insurance to protect you against potential liability claims.

Additional Business Insurance Coverage for Drones

Since your drone liability policies won't cover claims related to aviation, you may need some additional forms of business insurance to protect yourself from issues that can arise during drone operation. Your drone business insurance should protect your assets if your unmanned aerial vehicle (UAV) damages property or injures someone.

In addition, it should protect your investment if your drone is damaged and needs to be repaired or replaced. Here are some common types of coverage included in commercial UAV insurance policies.

Drone hull coverage: This covers the cost of physical damage to a drone or UAV caused by a covered peril, such as fire or lightning.
Onboard components coverage: This covers the cost of physical damage to a drone’s onboard accessories, such as DSLR cameras.
Ground equipment coverage: This covers the cost of physical damage to ground equipment used to operate the drone, such as ground stations, laptops, UAV cases, and remote controllers.
Non-owned drone liability coverage: This provides optional liability coverage for businesses that operate UAVs that they do not own.

Your independent insurance agent can help you build a complete drone insurance policy that includes each type of essential protection.

How Much Drone Insurance Do I Need?

The drone insurance market is evolving along with rapid changes in drone technology and how drones are being used. The types and amounts of drone coverage you need can vary based on a variety of factors, such as:

Your drones: The more expensive your drone or fleet of drones, the more coverage you need to protect your investment. Likewise, more expensive onboard equipment requires more extensive coverage.
The type of work you do: Businesses that rely heavily on drone operations will need more coverage. A filmmaker, for example, might need more coverage than a real estate firm.
Customer requirements: Customers often have varying insurance requirements. Some customers or municipalities might require you to have a certain amount of coverage before signing a contract.

Safety should be a priority for all commercial drone operators. All employees who are involved with drone operations need routine, extensive training and required certifications.

Keep in mind that drones are often required to be licensed and registered. You and your employees must follow all federal and state laws and be sure to stay informed on regulatory changes in this evolving area. In the future, commercial UAV insurance could be required by law.

How Much Does Drone Liability Insurance Cost?

The cost of drone liability insurance and other types of coverage you may need can vary based on many different factors, including:

Your location
The type of drone and equipment you have
How you operate your drone
Whether you use your drone for recreational or commercial purposes
Your claims history

A local independent insurance agent can help you find affordable drone insurance in your area.

The Benefits of an Independent Insurance Agent

When it comes to helping insurance customers find the right drone liability coverage, no one’s better equipped to help than an independent insurance agent. Independent insurance agents search through multiple carriers to find providers who sell drone professional liability insurance, deliver quotes from a number of different sources, and help you walk through them all to find the best blend of coverage and cost.

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