Insuring Unmanned Aircraft (Drones) Part 2 of 3

 In part 1, we began our discussion of the challenges represented by UAVs. Compared to radio-controlled, model aircraft, UAVs are, often, larger, more expensive craft and may be equipped with extensive photographic and computer components. They are used in ways that substantially increase the chance of loss because they are used in different settings. Originally UAVs were used in the following, non-military ways:


  • storm chasing¬†
  • mapping
  • documenting land use changes
  • agriculture
  • search and rescue

However, eyes continue to be opened about the, nearly, endless versatility with these devices. Today, interest in the commercial uses of drones is viral. Companies are developing or actively using drones for the following:

  • realty inspections
  • pipeline inspections
  • fast food delivery
  • monitoring crops
  • filmmaking
  • insurance claims inspections
  • surveillance
  • wildlife monitoring
  • news reporting on hazardous incidents and traffic reporting
  • package delivery

The increase in the number of UAVs and their use around people will generate way more incidents involving injuries and collisions (with persons and property), dropped packages, flight malfunctions, accidents with other aircraft, etc.

Insurance companies are in the forefront, determining how current or new products have to be changed or developed in order to handle additional loss exposures that will be created by growing personal and commercial UAV use.

Besides exposures involving injuries, damage or destruction to UAVs and to other property; UAV risks will also involve personal injury such as invasion of privacy, trespass, etc. They may also expand cyber liability risks as UAVs will face hacking threats. They may also create broader threats of terrorism.

UAVs are a part of a changing risk landscape and, again, insurance professionals will take the lead in responding to the challenges they pose.

Access the third and final post for this series on Unmanned Aircraft at:…ones-part-3-of-3/

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