Chances are you have seen or used a drone at some point. Drone usage is on the rise and is expected to continue to climb. If you use a drone in your business, you could be at risk. A drone is an unmanned aircraft system (UAS) and most insurance policies exclude them at this point in time.
Drones are a new exposure that most insurance companies are still trying to figure out how to handle. If you use a drone in your business, let your insurance agent know, as some carriers are able to remove the exclusion of coverage. Otherwise, you might need to look into a separate policy.
According to the FAA, the use of drones for commercial use is expected to rise from 600,000 in 2016 to 2.7 million in 2020. There are also specific rules and regulations that need to be followed to operate a drone for business use. The basics can be found on the FAA’s website https://www.faa.gov/uas/getting_started/fly_for_work_business.
Some risks that are involved with using a drone are bodily injury or property damage if the drone falls and hurts someone, or damages someone else’s property. There are also concerns of personal/advertising injury by the invasion of privacy or defamation. If the drone collects data, you also risk it being hacked. Navigating this new exposure will take some time but again, if you are using a drone for your business, be sure you check with your agent to see if you are covered or what needs to be done to get coverage.