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Will Agents Soon Offer Drone Insurance?

The Federal Aviation Administration (FAA) estimates that by 2020, about 30,000 small, unmanned aircraft will be used for all types of business purposes...
January 28, 2014

The Federal Aviation Administration (FAA) estimates that by 2020, about 30,000 small, unmanned aircraft will be used for all types of business purposes. Drones will require insurance coverage, which can open the door to new business for agents and brokers. But insuring an unmanned aircraft system means considering a multitude of insurance liability and coverage issues. The FAA estimates that roughly 7,500 commercial drones could be viable in five years.

Legal issues and questions could arise. Can a property owner claim a drone is “trespassing” on his land? How will stalking, harassment and other laws regulating criminal behavior be applied to drone use? Does airspace ownership apply to unmanned aircraft systems? What about claims of invasion of privacy and spying? What happens if a drone injures or kills someone? Although carriers are developing policies to cover insurance exposures relating to drones, they don’t have much data to guide them as they branch into this new territory.

Insurance for Commercial Drones: Sky’s the Limit (National Underwriter 1/15/14)

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