In February 2015 the Federal Aviation Administration (FAA) released a Notice of Proposed Rulemaking (NPRM), that the sky was now open to unmanned aerial vehicle (UAV), or drones. If you are like other individuals and corporations who have been waiting to invest in commercial drones, this long-awaited statement was welcomed.
With restrictions now lifted, the presence of UAV’s expected to grow exponentially. In fact, experts estimate that by 2020 more than 30,000 small drones will be used for business purposes alone – that estimation doesn’t include the projected number of personal drones being launched into action.
If you have been waiting for this FAA clearance, chances are you are eager to put your drone to use. Before taking off, however, consider the risks involved: as drone traffic increases so does the concern for safety and the necessity of privacy. Because of these concerns, it’s a good idea to consider taking out an insurance policy on your drone.
Determining Your Coverage
Even though mandatory insurance coverage wasn’t mentioned in the FAA’s NPRM, insuring your drone is the best way you can protect your investment and prepare yourself for the risks involved with flying your drone in an open, active airspace.
Furthermore, if you use your drone for business purposes, insurance is the best way to protect your assets and build a buffer for legal liability. It is also safe to assume that your clients and business partners will eventually request that your UAV is insured.
Before the rising popularity and frequent use of drones, standard homeowners insurance provided coverage for “radio controlled aircrafts,” a classification in which drones fall under. Due to the fact that drones are increasing in popularity and use, many insurance companies are changing their policies to adapt for the inevitable rise in personal injury and invaded privacy.
Your insurance carrier will likely want to know:
· The location of your take-off and landing
· Where and what you’re flying your drone over
· The altitude in which you’ll be flying
· Your overall skills as a UAV pilot
· Your knowledge of the UAV system
Insurance requirements and regulations will change as the industry expands, and underwriters determine what issues and securities are most pressing. In addition, insurance coverage will most certainly vary depending on the purpose of your drone.
In general, your insurance policy will likely include the following:
· Liability coverage: protection against personal injury and invasion of privacy
· Property coverage: protects the assembled parts of your UAV
· Workers’ compensation: for individuals using their drones for business purposes, having workers’ comp is vital when protecting the health and safety of your crew
With the drone industry taking off, it’s important to stay on top of evolving rules and regulations regarding the protection and safety of you, your drone, and your business.
Learn More about Drone Insurance in the Moreno Valley
At Best Insurance Services, we can answer your questions and even help you find a custom drone insurance policy. Give Best Insurance Services a call, today!