If you're interested in a drone,
talk to your insurance agent first. Drones are fun, but law suits are not. Drones are risky enough. Drones with surveillance technology may require special insurance coverage. Drone laws and insurance coverage can vary by state and by municipality, so call your insurance agent, and
ask about drone insurance today.
If you operate or plan to operate a drone commercially, you need insurance ASAP.
Find a local insurance agent here.
Drone usage is growing exponentially. In March 2017, the Federal Aviation Administration (FAA) projected that the number of recreational drones in the United States will triple from 1.1 million to 3.5 million by 2021. From 12/21/15 to 12/31/16, 626,245 hobbyists, men and women who operate drones for fun, registered with the FAA. Each week, between 5,000 and 7,000 people register and add their names to this list. Whether you like it or not, this trend is expected to grow in the coming years.
Where are drones used (commercially)?
At present, drones are used for many purposes, including:
Police surveillance. Police helicopters are loud and easy to notice. Drones allow law enforcement to monitor suspects in the day and night. They are quiet, and if operated correctly, won't scare away the people you're looking for. For these reasons, more and more police are using drones to fight criminals. Drones will continue to be used by police forces in the coming years, and their uses will likely expand.
Search and rescue operations. Many search and rescue missions take place in harsh, treacherous terrain. People risk their lives when they go out in search of a person lost in the mountains, forest, or the desert. Drones can be used to search a wide area. Instead of sending a person out into the wilderness, search and rescue teams can fly drones over the search area first. If they spot the lost person or clues to her whereabouts, the drone footage will show them where they need to go.
Military combat and reconnaissance. It's no surprise that the military has been using drones for years. They use them for reconnaissance, as well as combat missions. Drone use in the military isn't likely to decline in the future.
Photography. Drones can snap pictures that planes and helicopters can't reach. They offer new and exciting views and allow nature photographers to get up close to animals. With drones, you can see far and wide, which opens up opportunities for exploration.
Racing. Professional drone racing is a popular sport. Racers challenge each other in spots around the globe.
Product delivery. More and more companies are looking into using drones to deliver their products. Obviously, you wouldn't want a drone to carry fragile items like glass vases, but you they could help transport t-shirts, books, and many other goods.
Movies. Film directors use drones to capture footage from new angles and to create a never before seen visual experience. They will continue to explore with drones in the future.
Construction. Job sites are dangerous. Drones can be flown up to the top of buildings or around structures that are at risk of collapsing.
Mining. If you want to prospect a mine, you can head down there yourself or you could fly a drone. Like construction, this reduces the risk to human laborers.
News. Reporters use drones to access film footage they otherwise wouldn't have.
Sporting events. Professional sports use drones to capture images above stadiums.
Geographical mapping. The world needs maps, but some areas are hard to get to on foot. Helicopters and planes can help, but in especially dangers areas, this puts people at risk. Drones can be used to take pictures and to map remote locations around the world.
Disaster management. After a natural disaster like a hurricane or a tornado, you need to be able to assess the damage. Drones allow people to fly over large areas and can broadcast videos and send pictures to support disaster clean-up and rescue missions.
Farming and ranching. Farmers use drones to check on their property and to make sure their crops are growing properly. They can help locate dry spots and areas of poor growth. Ranchers can fly drones over herds of animals to make sure they're where they should be. This eliminates the need to ride a horse or drive out to the field to check on them.
Hunting. Hunters these days use drones to find game. Drones will save you from walking miles to locate animals. You can follow the herds and you won't need to set aside as much time to hunt.
Wildlife management. Park rangers and wildlife management workers can use drones to keep track of animals. This prevents people from having to trek miles in the wilderness.
Border surveillance. Border enforcement agents use drones to monitor the border. Drones help law enforcement find and locate people who are trying to cross the border illegally.
Weather research. Meteorologists use drones to predict weather. Drones can fly to areas and take images of storm fronts.
Traffic monitoring. Drones can fly over traffic accidents and can help traffic controllers maintain the flow of vehicles on the interstates and highways.
Mail delivery. The postal service and many other delivery companies could turn to drones to deliver mail in the future.
Flood monitoring. Floods can devastate large swaths of land. Drones can be used to assess the severity of floods and could help mitigate losses.
How to Insure Your Drone?
You, like many others, may want to fly a drone in the future. Before you do, inform yourself of the risks and prepare for the worst. Don't take any chances, buy drone insurance.
Drones are expensive, you don't want to have to replace it if it's damaged in a crash. When you fly your drone, you need to focus. You can't worry about crashing or hurting other people. Liability coverage will put your mind at ease and will protect you if your drone injures someone or damages another person's property.
When you need insurance for your drone, you have several options. Homeowner’s insurance policies cover personal property. As long as your drone doesn't transport people or goods for commercial use,
you should be able to add it into your rental or homeowners insurance. Speak with your insurance agent and ask him if this is covered under standard policies. You may need to add it to your policy since drones are still a relatively new technology, especially for private use.
Another way to insure your drone is to become a member of the
Academy of Model Aeronautics. Membership is $75 if you're between the ages of 19 and 65 and $65 if you're over 65 years of age. If you're under 19, membership is free. As a member, you'll receive personal liability, medical, accidental death and dismemberment (AD & D), and for fire, theft, and vandalism insurance coverage. Your coverage includes $2.5 million dollars for personal liability, $25,000 for medical and AD & D, and $1,000 for fire, theft, and vandalism.
Private insurance companies now sell drone insurance to individuals and businesses. Policies can cover personal liability, bodily injury, and damage to property. Drone insurance is relatively new, and is likely to change as improved underwriting procedures are developed to determine the wide range of potential losses and exposures.
Commercial Risks
In 2015, Munich Re, a leader in the reinsurance industry, asked risk managers from some of the largest insurance companies in the world to list potential dangers associated with commercial drones. 69-percent of those involved named invasion of privacy as the main concern. This was followed by insufficient insurance coverage at 12-percent, personal injury at 11-percent, and property damage at 8-percent.
As more companies use drones, these risks will no doubt change. For now, they offer a helpful insight into the potential pitfalls. Insurance companies will need to adjust their policies to accommodate new types of losses. CEOs and supply managers will have to decide whether or not to invest in drones. When they do, insurance will be one of their main considerations.
Personal Risks
Individuals, like businesses, must be careful. People could be sued or arrested if they violate someone's privacy. Law enforcement and the military will also reprimand pilots who enter unrestricted air space or who threaten a military operation. Piloting a drone is serious business. To avoid fines and jail time, purchase insurance and register your drone with the FAA. You should also attend a drone safety course. These are easy to find in many major cities in the United States. If you have trouble finding a class, visit the FAA website for more information.
The Future of Drone Insurance
Insurance companies will need to become more familiar with drones in the future. Adjusters will be assigned to handle more and more cases involving drone accidents, and they may even be asked to fly a drone over an area that's too dangerous to access by foot. Adjusters could utilize drones to pinpoint the areas that sustained the most damage and to gather clues about what caused the incident.
In the coming years, state and federal governments will pass legislation aimed at drones. Today, FAA requirements don't exist for pilots who operate drones for fun. If you want to operate a drone for work, you must be 16-years-old, pass a TSA background check, and you must have a Remote Pilot Airman Certificate. Recreational drones must be registered with the FAA if they're over 0.55 lbs. Commercial drones need to be registered if they're over this weight, and they can't be more than 55 lbs. If you plan to use your drone for business, you also must complete a pre-flight check.
If you plan to pilot a drone in the future, don't expect these regulations to go away. If anything the government will tighten its grip on the recreational and commercial uses of drones, as more and more UAVs take the sky. Inform yourself of the laws and requirements before you purchase a drone. Keep track of changes to legislation, and contact the FAA if you have any questions.
The future of drones in the United States is a mystery. In the near future, drones will no doubt grow in popularity; however, in the decades to come, it's hard to say if they will remain a constant presence in our lives or if they will be constrained by our government. One of the reasons the public may decide to fight against the spread of drones is to protect individual privacy rights. Drones allow access over your property that the government and private pilots otherwise wouldn't have.
This is a serious concern and all of us need to decide if the benefits of UAVs are worth it. Drones are convenient, fun, and efficient, but are they worth it if you have to worry about drones crashing into your house every night? Could you sleep at night if you knew that people could be flying drones outside your house, taking pictures of you and your family? Only time will tell, but one thing is certain: privacy is a serious concern.
Risk managers and insurance brokers predict that the drone insurance industry will grow by leaps and bounds in the next few years. Presently, people's attitudes toward drones is relatively positive, but this could change quickly. Insurance companies will need to work hard to predict and prevent common causes of accidents. They will need to work with the government, drone pilots, and businesses to develop insurance policies that cover a wide range of risks.
The FAA drone test sites are scattered across the United States. Here, pilots and FAA officials work together to keep our skies safe. They continue to look into the dangers, benefits, and risks associated with drones. The results of these tests, as well as innovations in drone technology, will determine whether the use of drones continues to expand or whether the government will divert more resources to curb the prevalence of UAVs.
In the meantime, insurance companies can't sit idly by and wait for the government to act. They need to determine if drone insurance is worth it, and if it is, they need to come up with creative ways to reduce accidents and mitigate risks.