Insuring your drone for commercial use

Insurance Insights | May 8, 2017

Insuring your drone for commercial use

Flying drones can be fun and useful, but raises a number of liability concerns. Nevertheless, more and more people are using drones for both business and pleasure. For example, photographers are mounting cameras on drones to capture unique angles and wide panoramas from the air, while surveyors are equipping drones with monitoring gear to expand their area of operations and speed.In other words, the proverbial genie is out of the bottle and there seems to be no stopping this trend, at least for now. That means we need to adapt and evolve as drones change the way we do business. Part of that adaptation will be reconsidering how we insure our businesses and assets.With respect to liability issues, drones can damage other people’s property, injure them and potentially endanger their lives. It is for this reason that Transport Canada recently toughened regulations on drone use near airports following a Porter flight’s close call with a suspected drone in the air over Toronto.Damage is also a consideration as drones can strike buildings, utility poles and chimneys while in the air; and damage cars and houses when landing or if they crash. Indeed, drone liability issues are pretty similar to those we face when operating cars and other motorized vehicles.On the other hand, commercial drones are much smaller and lighter than cars and trucks which suggests they would inflict less damage and injury in case of an accident. That being said, some operators may get frustrated with meeting all the regulations and opt out of using drones altogether.But this won’t be an option for the people whose businesses have come to rely on drones. If this is your situation, your broker should be proactive as the landscape of risk evolves to accurately access your exposures to emerging risks like drone use.Because standalone drone policies remain relatively uncommon for now, many operators rely on their commercial policies to cover their drones. However, it is an open question how much coverage current CGLs provide for drones. Ask your broker to explain the details of your policy to determine if it will cover your drone related contingencies.Are you financially prepared to repair or replace your drone out of pocket? Call us today to find out how you can protect your pockets.