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Commercial Unmanned Aerial Vehicles

Commercial UAV Insurance

Just like most other insurance policies, a drone insurance coverage policy covers you if you get into an accident or if you lose your drone. Del Duke Insurance Group will help cover any damage and liability costs within the extent of your policy.

Drone Regulations and FAA Operator Guidance

Officially known as Unmanned Aircraft Systems (UAS) or Unmanned Aerial Vehicle (UAV), they are more commonly called “drones.”

UAS & UAV use is expected to continue its rapid expansion from 2016 in the real estate and natural disaster categories to now beyond 2020, with infinite potential. As with anything new, there are always worries to privacy, and other third party concerns.

faa part 107

Commercial Multirotor Insurance

uas insurance

Drone Concerns

Concerns regarding drone use include the potential for:

  • Interference with manned aircraft– According to a report from the Center for the Study of the Drone at Bard College, there were 327 encounters with drones that presented a hazard to manned aircraft from 2013-2015.
  • Use by terrorists– The Department of Homeland Security has referenced this concern in security assessments.
  • Privacy issues– This is in regard to the use of the immediate airspace above private property.

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Commercial Multirotor Insurance

Because drones are considered aircraft, their use is governed by the Federal Aviation Administration (FAA), which recently put regulations in place for recreational usage. By February 19, users must register their drones with the FAA or face thousands of dollars in fines. The FAA has said it expects to unveil commercial drone regulations this spring. Until then, companies can petition the FAA for a Section 333 exemption in order to use drones for commercial purposes.
In what should serve as a warning regarding drone use, the FAA in October 2015 proposed a $1.9 million fine against one company for its alleged reckless use of drones.

Insurers are becoming increasingly concerned about drone risks. While insurance coverage for UAS operations covering physical loss and liability is available, how insurers and the courts will respond to claims remains to be seen.

Coverage may be excluded from casualty policies as insurers are concerned about the unfamiliar and evolving risks related to drones. Typically, commercial general liability policies exclude coverage for bodily injury or property damage arising out of the use of “aircrafts,” which may be interpreted to include drones. Enter drone liability insurance.

May provide coverage for invasion of privacy, depending on the circumstances of the claim. Insurers are scrutinizing insures that use drones and asking for detailed information about their size and intended purpose.

As with any developing technology, companies will be well-served by carefully planning their use of drones, keeping abreast of developing regulations, and working closely with insurance and risk advisors to mitigate the risks.

FAA Part 107

Effective as of August 29th, 2016, the FAA now requires every drone over .55lbs to be registered by its owner. Any pilots operating a drone not registered may be subject to legal consequences.

Anyone looking to buy UAV/UAS commercial drone insurance coverage should contact Del Duke Insurance Group today! We can get you fitted with a commercial drone insurance policy that best fits your company. Give us a call (856)424-7960 or email us HERE.