Are you using a drone in your business? If so, you should be aware that the standard general liability insurance policy is not providing coverage for liability or property covered for an unmanned aircraft. Today we’re discussing how drones can affect your business insurance policies in Salem OH.
Most insurance carriers were using the aircraft exclusion on the general liability insurance policy, but many companies are introducing an unmanned aircraft exclusion to be sure their liability policy leaves no room for different interpretation. This is why you need business insurance policies designed specifically to cover the drone.
You will need liability insurance coverage in the event someone is hit by the drone or if the drone causes property damage. You need hull coverage to cover the drone itself and its payload in the event it is damaged by a covered threat. (A payload can be a camera or a package carried by the drone.)
The Aviation Administration is expecting 600,000 drones to be used commercially and it has now become easier to become a commercial drone operator. The FAA is the government body that will set the rules and regulations for commercial drones in national airspace. Drone operators will need to pass a certification test and abide by various flying restrictions.
So, what do you do if you need to use a drone in your business and you need a specific policy designed to cover the drone? An insurance policy can be issued for the drone operator to cover both physical damage to the drone and its payload, as well as liability exposures coming from a third-party bodily injury and property damage.
In addition, you can get insurance coverage to cover the privacy issues of using the drone and non-owned aviation liability, for drones that you rent or borrow. It is important – if you are signing a contract to rent a drone or to hire a pilot – that you and your attorney review the contract.
Since this industry is in its early stages, most of the contracts and language are not yet standardized. In order to be sure that you know what your responsibilities are, you need to have the contract reviewed and read.
The cost of drone business insurance policies in Salem OH can range from several hundred dollars to several thousand dollars per year. The cost depends on the type of the drone, the scope of its use, the experience of the operator and the desired liability coverage.
Before any activity occurs on the job site, an Unmanned Aircraft Systems (UAS) should have a safety procedure developed. At the minimum, it should include the safe use of the UAS, pre-planning, and risk assessment activities. It is important that the pilot is certified and has experience as an unmanned aircraft pilot.
Drones are being used in a variety of businesses – large and small – in lieu of helicopters for various types of jobs. The cost of a helicopter can be a few thousand dollars an hour, compared to owning a drone with a camera which can be purchased for under $5,000.
Want to know if your business insurance policies in Salem OH are providing you with adequate protection? Call our office today to schedule a consultation and let’s discuss your goals and options.