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Drone Insurance For The Uninitiated flyer?

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So Santa has listened to you and you find out that you are getting a drone for the holidays as a gift. You are excited and perhaps have some great projects in mind. Your cousin Elma is getting married. You think it will be a great idea to awe the wedding audience and bring out your drone for flying and those great hard to get shots. Then the unthinkable happens. You did not charge up the batteries, neglected the firmware update and drone lost control and crashed into the wedding spectators. This type of scenario may be more common then you realize.  Worst yet, you are now receiving litigation because of the perfect Tsunami of errors that have accord. The reality is you never want to get sued for doing someone a favor or trying to get a business going.

Yuneec Breeze

Photo by David Tolsky

How Drone Insurance came about

As the cost of drones are going down, the appeal has never been stronger for purchasing a drone as a present. Indeed, demand has surged for these types of products. When the Mavic hit the market, the appeal of drone ownership has never been more realized. Indeed, more then 577,000 people have registered as hobby drone operators with the FAA. Also not considered is an astounding 1.5 million drones will be sold this holiday season. So with all those drones flying around, the possibility of accidents will also increase.

Drone insurance

Photo by Alex Assenmacher/ We Talk UAV

Drone Insurance for the casual flyer -Why consider the question.

In general, if you are flying a drone and it causes injury or damage to personal property, your general insurance policy may have liability coverage to the limit of your policy. But what if you are flying a drone as a favor to a friend at a wedding? What if your small business gets increasing professional projects that require you to pilot a drone? Perhaps not as much. Indeed litigation numbers are up as independent drone operators involved injury related accident.

drone insurance

Many of the insurance policies the basics but not much more. Some insurers may exclude drone-related incidents from their policies. As the number of drone related accidents increase, the number of insurance companies may decide to omit drone coverage altogether. That is why it is important to be as direct with the language with your insurance company to see what they do and do not cover. Make sure you get that information in writing as well. As one insurance agent would suggest, “The evolution of drone ownership is something that insurance companies will continue to monitor and impact policies accordingly. “

What Does Drone Insurance and Hurricane Katrina have in common? -Plenty!

When Hurricane Katrina hit New Orleans, many  homeowners were soon to find out how language was important. Homeowners wrote out a whopping $13 billion in insurance premiums. The insurance companies made $1 billion in profits. Once the hurricane hit, Insurance companies lost over $8 billion in damages. Consequently, the number of property loss that was not covered also increased dramatically. What caused many of these properties to have denied claim from the insurance company? Call it the delicate dance of Wind Vs. Flood.

Katrina hurracane

The City of New Orleans borders the Gulf of Mexico. The city itself is below sea level with many of the areas protected by levies. For this reason, many insurance companies within the area will not cover for water damage, only wind damage. As a result, many of the claims were denied. The need for direct language with your insurance company has never been more important or clear.

The Bottom Line:
The never ending story of Drone Insurance Continues:

The bottom line with an insurance company is that it is a business and therefore need to make a profit. How will Insurance companies handle the demands for drone ownership or will it stop insuring in the future?

by Ben Walford

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