The Federal Aviation Administration (FAA) estimates more
than one million drones will be sold this holiday season. Everyone from
photographers and farmers to law enforcement and hobbyists are using
drones. Whether for personal or
commercial use, there are a number of insurance issues to consider ranging from
personal injury and property damage to privacy concerns.
Drones present a
significant risk to property and life on the ground in the event of an
accident. Drones can crash due to faulty and inappropriate operation,
mechanical defects and component failure. Losses and damages could involve
bodily injury to humans and animals as well as buildings and structures.
Using a private drone as a hobby is generally covered
under a homeowner’s insurance policy—and subject to a deductible--which
typically covers radio-controlled model aircraft. This also applies to a
renter's insurance policy. Look at the contents section of your policy, or talk
to your agent to see if your drone will be covered if it is lost, stolen or
damaged. If your drone falls onto your car, damage to your car may be covered
if you have a comprehensive coverage auto policy.
A larger concern is liability for an accident caused by
your drone. If your drone crashes into someone else's vehicle or a person. If
you have a homeowner’s or renter's policy, generally the policy will cover
liability for an accident caused by your drone if it is determined that you
were negligent and at fault. Check with your agent or insurer to verify your
policy contains this important coverage. You can also
read
a story about drone insurance that was recently posted on the Insurance
Journal’s website.
Drones are defined as remotely piloted aircraft systems
and the FAA says pilots of unmanned aircraft have the same responsibility to
fly safely as manned aircraft pilots. In addition to FAA regulations, state and
municipalities may have their own laws regarding drone use. The FAA has issued these guidelines for drone
hobbyists:
- Don't fly higher than 400 feet and stay clear of
surrounding obstacles.
- Keep the aircraft in sight at all times.
- Stay away from manned aircraft operations.
- Don't fly within five miles of an airport unless
you contact the airport and control tower before flying.
- Avoid flying near people or stadiums.
- Don't fly an aircraft that weighs more than 55
pounds.
- Use caution when flying your unmanned aircraft.
- With some drones weighing up to 55 pounds, a
fall from the sky can cause significant damage to property or bystanders.
Recently, federal regulators announced that recreational
drone operators will soon need to register their aircraft. This will allow
authorities to trace a drone back to the owner, which means it's vital that
you're in compliance with laws and regulations and have the appropriate
insurance coverage.