PRODUCT: Drone operator insurance
COMPANY: Global Aerospace Inc.
BEST RATING: A (Excellent)
AVAILABILITY: Coverage is available through appointed agents and brokers.
FOCUS: Drones—also known as unmanned aircraft systems (UASs) and unmanned aerial vehicles (UAVs)—are having a significant impact on numerous industries, including energy, construction and agriculture.
In fact, drones comprise the most dynamic growth sector of the world aerospace industry this decade, according to the Teal Group, an aerospace and defense market analysis firm.
The Teal Group's 2015 market study estimates that UAS production will soar from the current annual $4 billion to $14 billion, totaling $93 billion in the next 10 years. And military UAS research spending will add another $30 billion over the decade.
“In this ever-changing environment, we are witnessing a growing number of enterprises choosing to outsource their drone operations,” explains Chris Proudlove, senior vice president and manager, Northeast Regional Office and UAS Risks at Global Aerospace.
The pace of change is influencing these decisions. “Safety concerns and a lack of clear legislation are causing numerous industries to decide that the most effective way to use drones is to contract with professional operators,” Proudlove says.
Because drone operators are overwhelmed with regulatory challenges, as well as the public’s widespread perception of the dangers associated with drones, many in the UAS industry expect insurance carriers to be the authority on risk management initiatives.
“That’s where we come in,” Proudlove says. “Aviation is a litigious environment. Drone operators may not consider what they are doing to be dangerous, but operators of UAVs can be exposed to legal action if damage is sustained to property or injury to persons. Liability insurance doesn’t represent a big cost when considering that the livelihood and reputation of the insured parties are at stake.”
UNDERWRITING: “We provide industry-leading products and services for all areas of the UAS industry, including operators, manufacturers and all companies in the risk chain,” Proudlove says. While drones share a basic risk profile and insurance requirements with piloted aircraft, major differences exist in the risks associated with developing and operating this new technology.
The principal items to consider when assessing an unmanned aviation risk include an operator’s professionalism, experience and training, the model’s capabilities and purpose, and the environment in which the model will operate, including proximity to people and property.
DroneGuard coverage includes platform and aircraft hull physical damage; payload hull physical damage; ground equipment physical damage; non-owned aircraft physical damage; liability to third parties, including bodily injury and property damage; war, hijacking and malicious damage risks; and personal injury.
Global Aerospace insurance policies are specifically designed for UASs and provide protection for the entire system, including payload and ground equipment. This consists of cameras, sensors, surveillance equipment, gyroscopes and ground operating devices.
While DroneGuard℠ is a commercial package insurance program designed exclusively for members of the Association of Unmanned Vehicle Systems International, this UAS operator insurance is available via a broad group of brokers.
MINIMUM PREMIUM: About $875 for $1 million of liability coverage.
TARGET: Industry sectors such as agriculture, forestry, photography and videography, conservation, forestry, realty, construction, mapping and survey, search and rescue, disaster relief, mining, security, engineering, parcel delivery, Third-World medicine delivery, defense and border patrol, movies and media, sports teams, and energy and utility companies.
COVERAGE TERRITORY: All 50 U.S. states.
CONTACT: Chris Proudlove, senior vice president, Northeast Regional Office & UAS Risks; Global Aerospace Inc., One Sylvan Way, Parsippany, NJ 07054; 973-490-8525.
Ronimarie Acord is an IA contributor.
