Drones are up and coming business features that are now common. If your company has invested in a drone for aerial photography, farming, inspection, surveying, real estate, or otherwise – you should be smart enough to obtain an insurance cover for it.
What is drone insurance?
Drone insurance operates like any other liability coverage. It saves you a major headache in case you lose your drone or it suffers an accident. The insurance company covers damage as well as liability costs to a particular extent. Insurance companies will require maintenance log, a record of add-ons or parts, and operating manuals that you have purchased. Alongside your records, you will need a proof of training. This ensures to the company that you are a knowledgeable and safe pilot. If you do not have proof of training, we recommend a letter detailing exactly what steps you plan on taking to be an aware, knowledgable, and safe pilot.
What drone operations can be insured?
A company can insure the following potential drone operations;
· Fire and rescue
· Emergency response
· Homeland security
· Shipping and maritime
· Conservation and agriculture
· Movies and videography
Types of accidents covered
· Third party legal liability
· Fire legal liability
· Manufacturer product liability
· Damage or loss to the UAV as well as equipment involved
· Aircraft operators coverage
· Premises medical payments and aviation
In conclusion, you can basically insure your drone for any commercial/sector reason.
Why get your drone insured?
Having an insurance cover for your drone is a smart move which saves you a lot of money in case of an accident. If your model malfunctions or you make a piloting error, you risk not only destroying your drone, but you may also injure innocent bystanders in the fiasco. Without insurance, the pilot is receives no compensation and is also responsible for the injured persons. This could lead to a huge headache and possible jail time.
Insurance isn’t just for your personal safety and well-being, but for those interested in hiring your drone service. Companies looking for cinematic aerial shots of the their business are only willing to work with those who are equipped in case of incident. Businesses want the comfort of knowing that, if something bad does happen, their pilot and business will be covered in all manners. Without it, they’ll like sought out other professional aerial photographers.
So, with that being said, it is worth the 10 minutes of paperwork to ensure you, your client, and your drone are safe.
Who needs drone insurance?
If you are in a professional setting and use your drone commercially, I would strongly recommend obtaining insurance for your drone. Hobbyists flying around local parks or in their backyards need not apply, as their models are not put in the same situations as those of commercial UAV pilots.
How much does drone insurance cost?
The policies for drone insurance are divided into 2 parts:
That is, hull damage and liability. The liability covers the claims and damage to third parties. The hull damage covers damage related to the drone. Depending on the experience, background and volume, the insurance cost varies.
To get the exact amount you will pay, you require a unique quote from an insurance organization. This is because every company structures its policies different – but from sources online, it seems that you’ll be paying between $500-1,000 a year to insure one drone.
How do I obtain coverage?
You need to get quotes from different companies and then use your own discretion. Remember to pick a plan that suits your needs as a commercial drone pilot. There are numerous companies you can get involved with, though one I do hear about often is Terry Miller’s insurance company, it is called Unmanned Risk Management (link added in the bottom). Currently, it is one of the largest aviation insurance companies in the world and has drones insured in all 50 US states.
You’ll be expected to have this information ready when signing up for drone insurance:
· Coverage type
· Personal information
· The total cost of your drone
· Place of operation
· Hours of operation
· Level of personal training
· Previous loss/accident history
· Country – equivalent certification paperwork
After completing the following information, give it to your chosen insurance company and they will proceed accordingly.
Can I lose insurance coverage?
You can lose insurance coverage if you cannot adequately explain what happened during the time of accident.
This is why it is important to adhere to these steps:
- Always save and keep records of your flight logs – this includes general data and video to ensure your claim will be covered.
- You must register your drone with the FAA – please click here if you have a drone you need to register.
- Remember to practice often, and in safe settings. Check out this article about common mistakes drone pilots make and how to avoid them.
- Be aware of the FAA Rules and Regulations – you can read about them in this easy-to-read article here.
Concluding, if you’re a respectful pilot that knows how to fly well, your coverage is is no danger. Just remember never to be careless- quadcopters are serious pieces of equipment with serious price tags, and serious incidents can occur if you are not careful.
If you’re a business man doing his best in the aviation industry, we can’t stress enough that you obtain a license for your drone. Accidents happen – if your drone happens to malfunction over a crowd of people during a big shoot – you’re gonna want an insurance provider on your side to avoid legal consequence and monetary penalties. With that being said, we’ve included a small list of recommended insurers below:
Do some research for yourself and find a plan that suits your needs best. Make sure to comment below an tell us what you think about having your drone insured – is it worthwhile?