|Do you own a commercial drone business? Have you been on edge about whether or not drone insurance is a good idea? We had the opportunity to listen to Global Aerospace give a presentation at the March 2016 UAV Alliance meeting about their drone insurance policies. Considering the price, you can’t go wrong by having insurance.|
1. You’ll have liability insurance to third parties.
In the event of a crash, hopefully you just fall to the ground, but we all know that’s not necessarily the case. What if your drone falls on someone’s car? What if it causes damage to a building? What if it hits a person? The list of what if’s can go on and on. So why not be covered for accidents that cause damage to a third party. Is not spending $1000 dollars a year for a policy that covers you in multiple areas worth the risk of cratering your business financially?
2. You’re covered if someone tries to shoot your drone out of the sky.
We’ve all heard the stories of people threatening to shoot someone’s drone out of the sky. And in fact it has happened. But did you know you could be covered for this type of incident with the standard War and Peril risk coverage? And to top it off, this is part of the coverage for your standard drone insurance policy.
3. You don’t need a 333 exemption to get insurance.
Companies providing drone insurance aren’t worried about a 333 exemption. And, chances are, it’s going to cost a 333 entity the same to get insurance than one without a 333. They aren’t seeing any higher amount of claims with people who have a 333 than those who don’t. But, they will check to make sure it’s not your first rodeo with a drone. They are not going to provide you with insurance if you can’t prove you didn’t just walk down to the local hobby store, buy a drone, and start a business.
4. Compared to the cost of your drone, or more importantly your payload, the cost is quite low.
Drone coverage through Global Aerospace averages between $1,000-$2,000 per year. These costs are down 10-15% from a year ago and are expected to continue to go down. Think about it, if you own a DJI Phantom that cost in the ball park of $1,000 and you go out on your first flight and you have an accident that wrecks your quadcopter you’re covered, and so is the damage to your payload. You use your insurance, file a claim and you have a new Phantom and payload ready to go with no loss of business to your clients.
5. Contracts may depend on it.
Most contracts related to drone operations will require drone insurance. Some even specify the type of coverage that is required. Rather than wait around to see what your contracts are going to require, get covered now and spare yourself the loss of a contract!
Still not sure and have more questions about drone insurance? We recommend talking to an insurance broker to find out what works best for you!