Drone Insurance Services

Comprehensive Insurance Services

Operators of drones, both for commercial and governmental use, must maintain efficient policies to minimise key risks and provide safeguards for operational use. Drone insurance is not new, having been in place in some areas since the 1980’s. However, today’s drones are more advanced and present further risks as they continue to grow and change.

Risk analysis of drone usage is very complex and not always clearly defined, but investment in drone technology should not be avoided by businesses because of this complexity. To help implement their use, working closely with an organisation with experience in drone insurance is essential.

Key factors that will determine risk analysis and risk profiles of drones include:

  • Number of flight hours in use
  • Type of use
  • Area of use
  • Value of the aircraft
  • Perceived liability risks

Drones insurance brochure

While risks exist, opportunities abound within this market. Osprey Insurance Brokers aims to provide comprehensive insurance customised to meet the individual needs of each of our customers. We focus on these areas as stepping stones towards creating custom packages.

Among the specific types of UAS coverage offered by Osprey Insurance Brokers is the following:

OPERATORS

 

Commercial Drone Liability Insurance

The most comprehensive policy mitigates against risks associated with drone operation. Accidents covered in such policies include loss or damage to the UAS and associated equipment, premises liability, manufacturer product liability, coverage for aircraft operators such as non-pilot and on-ground crew, and third party legal liability.

 

UAS Hull Damage

UAS Hull Damage provides cover for the actual structure of the vehicle, as well as spares, for all risks. This may include accident loss or damage to the aircraft or spare parts and components during operations.

 

Physical Loss Insurance

This type of policy is likely to cover the aircraft itself including the airframe, operating system, flight controls and propulsion units, aircraft payload, such as camera equipment and sensors and packages, transit coverage, spares, the ground station and control unit.

 

Total Loss Insurance

Total Loss Insurance provides for a claim at a fixed sum as well as in addition to the UAS at the Agreed Value payable under the Hull All Risk policy in the event of a total loss.

 

Aircraft Hull and Spares War and Allied Perils

Specific to drone operations, this cover aims to write back most of the war and allied perils that were excluded under the Wall and Allied Perils Exclusion Clause found in the Hull and Spares All Risk policy. It further extends coverage to protect UAS and spares against risks ranging from war, strikes, riots, civil commotions and labour disturbances. It also offers protection from terrorist acts, malicious acts and sabotage, confiscation and requisition by government and hi-jacking.

LESSORS

As drones become more valuable and use widens, the need for lessors and financiers to remain protected within this environment is growing as well.

 

Contingent Insurance

This cover, which extends to include hull, war, or liability, provides protection to cover exposure of banks, financiers, and leasing companies where protections under primary UAS operators fails to respond to a loss. This may occur as a result of insufficiency of operators policy to meet the liabilities, gaps in coverage from non-renewal or cancellation, failure by operator brokers to notify insurers of financiers or lessors interest, and restrictions on policy proceeds.

 

UAS Repossession Insurance

This type of UAS cover provides protection to financiers and lessors as related to political risk, a growing threat in various areas. It covers the financier or lessor in the event that it is unable to recover UAS resulting of the actions or inactions of a foreign host government, which may include failure to deregister an aircraft, inability to obtain expert certificate of airworthiness, inability to obtain physical possession of a UAS or its records and confiscation or requisition by a foreign government.

 

Additional Risk Mitigations Regarding Regulations

Coverage for drones must be flexible to meet ever-changing regulations. Key areas of concern within policies extend to include:

  • Size and weight of the aircraft including concerns regarding regulations
  • Payload depending on usage, especially in situations where a heavy landing occurs
  • Fraud and theft concerns with commercial use drones costing US $250,000; in some instances, these are highly portable types of equipment lending themselves to theft
  • Advanced technology, which make replacement parts for machines difficult to obtain
  • Privacy matters related to claims of breach of privacy by third parties (though these risks are often excluded by insurers)
  • Cyber risks associated with usage of units under 400 feet banding, where it is possible to lock into these units through broadband and WiFi connectivity
  • Operator and pilot experience, including meeting all necessary regulations and training requirements
  • Broad usage, which can even vary from one day to the next for the same vehicle-making insurance activities a bit more complex

 

Customised Drone Insurance Support

Osprey Insurance Brokers works directly with our customers to provide a custom aviation and UAS policy that meets the specific needs of any business. By offering a flexible policy that offers cover to all applications and industries in a tailored environment, operators, lessors, financiers, and others within the industry gain insight and clarity of risks and how to protect against them. Expect outstanding service and attention from our experienced team.

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