What is commercial drone insurance & aircraft insurance?
Commercial drone insurance and aircraft insurance are insurance for aerial vehicles. Drone insurance covers UAVs (Unmanned Aerial Vehicles), whereas aircraft insurance covers insurance for piloted aerial vehicles for a variety of risks and exposures.
Aerial vehicles face several risks when operational. These risks include, but are not limited to:
- Third-party damages incurred due to at-fault collisions with someone’s property.
- Injuries or death due to operation of the vehicle.
- Damages due to fire, theft, or vandalism.
Besides these risks, the law mandates several insurance policies for business that include aerial vehicles. Policies such as worker’s compensation and general liability are essential for any business to operate legally.
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Who needs commercial drone insurance & aircraft insurance?
Businesses that use aerial vehicles as part of their business require commercial drone insurance and aircraft insurance.
These businesses can include:
- Flight schools
- Commercial airliners
- Drone or airplane rental services
- Businesses that own fleets of aerial vehicles, and other such companies
Drones used for recreational purposes do not need insurance. However, these drones will have to comply with the Federal Aviation Authority’s law on recreation UAV operations. Owners of such UAVs can opt for personal drone insurance. Claims Journal shows that drone accidents are on the rise, and homeowner insurance providers are starting to deny coverage for drone accidents.
Professional photographers and videographers who use such equipment must also obtain drone liability insurance. These professionals require photography insurance along with coverage for their drones.
What policies do commercial drone insurance & aircraft insurance entail?
General Liability Insurance:
General liability insurance is a typical coverage all businesses require. It protects the company against third-party claims that arise due to business operations, processes, or accidents inside the premises.
Professional Liability Insurance:
Professional liability insurance protects a business against losses incurred due to negligent advice or professional errors. This insurance protects you from lengthy and expensive lawsuits that might arise due to said reasons.
This insurance is especially necessary for flight schools and other institutions that conduct aviation or drone-use training. If your clients feel that you have provided substandard tutelage (which is subjective, but the courts have the final word), they are likely to sue you.
Standard exclusions and coverages in commercial drone insurance and aircraft insurance
Commercial drone insurance and aircraft insurance have particular coverages and exclusions tailored especially for the industry. These include:
Passenger liability coverage
Passenger liability coverage is a policy tailored for aircraft carriers. It provides coverage if a passenger is injured or killed in your aircraft, and is usually charged on a cost-per-seat basis.
Aircraft all-risk coverage
Aircraft all-risk coverage is a blanket coverage that covers any damage to the aircraft when grounded, taxiing, or in-flight. It is another coverage explicitly tailored to the aviation industry.
Non-owned aircraft exclusion
Most aircraft insurance plans exclude aircraft that you don’t own but still operate. This coverage extends to rental and leased aerial aircraft, which is generally insured through the business that rented you the vehicle, or an aircraft renter’s insurance.
How much does commercial drone insurance & aircraft insurance cost?
There are various factors that determine the cost of commercial drone or aviation insurance. These factors range from:
Flight hours
Frequency of use
Types of aerial vehicles
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