Drone Insurance Question
I have been doing a little investigation re existing Liability (Commercial Business) on use of UAV’s / Drones for any potential vicarious risks my existing client may have to their use by their contractors ( R/Estate firm = images and videos for sales campaigns etc.)
Realised early that most of the Liability wordings do not “ know “ about them , therefore facing issues of potential exclusions relative to “ air craft “ ?
Just like earlier days of Cyber this is an emerging risk
Insurers are and have drafted an endorsement which gives UAV’s / Drones a definition and from a vicarious issue my clients are now in a clearer position.
My query is – with your experience where do you sight the “ risks” ahead relative not only to direct users , but for those who may get dragged into related actions from their Contractors who use the Drone?
Oh and what if the CEO decides he’d like to play with one at home – how will the risk associated with private use impact current HH Policy wordings ??
I’ve been alerted to CASA updating their requirements for their licensing or use –
Drones weighing more than 2kg will need a more specific aviation cover on the unit and its associated Liabilities.
Here is the link for more information :-
PS- Hope you and family are all well
Gary [surname and email provided]
Thanks for your note about Drones. I’ve done a few pieces on this and you would be surprised just how many businesses are using drones. The list includes farmers, engineers, the mining industry, construction industry as well as real estate as you say.
Taking the easy bit first, if someone is using a smaller drone such as a DJI Phantom or the like, which is really just an expensive toy, then I believe it would fall under the definition of a model aircraft which is a write back to the aviation exclusion found in home and contents policies. Again, it is important for the Insured and/or broker to check the home policy to make sure that the exclusion would not apply for them using a drone purely for recreational/fun purposes. I doubt that the insurer would take a positive view if the Insured was using it inappropriately by, say, breaching someone elses privacy as a deliberate act. In a commercial situation, when the unmanned aerial vehicle (“UAV”) is being used for commercial purposes, it is no longer regarded as a model aircraft and therefore my recommendation is to obtain an aviation policy. For my own business, we do have a drone which we use regularly and I have elected to insure that through QBE Aviation and I have found Mr Simon Hooper, based in Melbourne, to be very helpful and keen to ensure that his Insureds are protected.
The cost of this cover has come down considerably from the first year of our owning the drone/UAV. Initially, I found it cost prohibitive and I decided to carry the risk myself, whilst taking certain risk management precautions to ensure that the risk to the business and I was minimal. While I still take those same risk management measures, having the added protection of insurance is a great comfort to me.
There may well be other products out in the market, but Simon is my go to man when it comes to this class of insurance and am sure he will look after you.
Finally, you are to be congratulated for addressing this very real issue for your clients.