Below are two articles covering the ever-evolving insurance market for businesses that operate Drone’s or UAV’s for business. Many of these issues are related to delivery of goods but important information for any company that operates a drone for business. This will help you understand that the insurance product is new and changes will occur from policy year to policy year. Please visit our drone/UAV Colorado insurance page for more information. Articles are linked below:
operation poses different risks to different actors. Individuals, businesses, and other commercial entities that own and operate unmanned aircraft are exposed to the widest variety of risk. sUAS owners may be exposed to potential liability for damage their unmanned aircraft could cause to their business—damage to the aircraft themselves from malfunctions or crashes, damage to business property, and personal injury to employees, as well as loss of use, replacement costs, and business interruption if aircraft are irrevocably damaged and must be replaced. Owners could also be liable for damage their sUAS cause to others, including property damage, personal injury, and business interruption. Owners may even be exposed to negligence claims in operation or hiring, training, and supervising sUAS operators and support personnel, including visual observers and maintenance providers.
Other potential liability concerns for owners involve software corruption and invasion of privacy risks. Many unmanned aircraft are capable of collecting, storing, and even sending data in real time to ground stations. sUAS are often equipped with onboard cameras or infrared sensors. Operators may therefore either intentionally or inadvertently capture or transmit personal, nonpublic information, such as intellectual property, trade secrets, and other confidential data. sUAS software can be hacked, or “spoofed,” to gain control over the sUAS and sensitive data it has collected. These possibilities open owners up to potential liability for a wide variety of invasion of privacy and media liability torts resulting from misuse, corruption, or hacking.
Drones also create insurance questions, Mr. Crawley said. Right now, under Federal Aviation Administration rules, businesses that want to use drones for commercial purposes must obtain a waiver in order to legally operate drones, and most insurance policies would have exclusions in their policies if they are operated in violation of the law.
Policy language covering drones is still in the development stage, “so it remains to be seen how broadly or narrowly” insurers will write these policies, Mr. Crawley said, adding that firms should consult with their brokers on this issue.
Thank you for your consideration.
Please contact us to discuss insurance and your business.
The Orcutt Group Team