Drones are the future, and everyone, from kids to businesses, is using them nowadays. They present a variety of opportunities and are perfect for work and play. Since the former is more common, businesses should take steps to ensure they are protected if their drone injures someone or damages property.
Drone insurance is a form of professional liability insurance that covers various types of damage. Since drones are becoming more prominent, it’s better to be safe rather than sorry. What is drone insurance, and what does it do? Let BrokerLink answer these questions and many more in our guide to drone insurance.
Understanding drone insurance
Drone insurance is a specialty insurance policy that helps protect commercial drone operators from threats of lawsuits. It is considered a type of professional liability insurance that prevents having to pay the costs of property damage and bodily injury out of pocket. Additionally, it will protect a company if theft occurs.
However, it’s important to establish that this policy is not part of commercial liability insurance policies. You will need a separate policy to cover any damages resulting from drone use. Drones are one of the many types of business liabilities you can have.
Businesses that require drone insurance
Drones can help people working in a variety of industries. They are helpful pieces of equipment that can help people do their jobs more efficiently. Those who fall into these categories may find use for drone insurance:
- Photographers
- Film production
- Media and entertainment businesses
- Home inspectors
- Special events (e.g. weddings)
- Security firms
- Realtors
- Commercial inspectors and surveyors
- Videographers
Alongside business insurance and professional services insurance, people working in these industries may require drone insurance if they use them. While drone insurance is optional, having it makes sense because, similar to employee dishonesty, you never know when something will happen.
Drones are considered unmanned aerial vehicles and cost a decent amount of money. Adding a drone insurance package to your business insurance policy is a wise choice. With that in mind, we will get into the types of coverage drone insurance offers next.
Available types of drone insurance coverage
Drone insurance provides additional coverage for your business if you use drones. There are two coverage options included in the policy, and you can add another one for extra coverage. Let’s get into it:
Commercial general liability insurance
Commercial drones should be protected by commercial general liability insurance. It will protect you against claims of third-party bodily injury or property damage caused by your drone. Since a drone is an unmanned aircraft, it can malfunction and land on someone else’s property, potentially injuring them. That’s why business property insurance is essential. Medical costs, legal fees, and other costs related to lawsuits are covered under this section of the policy.
Drone equipment insurance
Drones aren’t cheap, which is why repair and replacement costs are no different. If the drone pilot crashes your drone or it gets lost or stolen, drone equipment insurance can assist you. While it may not cover the exact cost, getting your drone back after a faulty flight path is important, especially if it’s your only drone. A gust of wind can blow your drone into a building, and having insurance cover the costs can help you out. It’s a security measure like theft prevention for stores.
Professional liability insurance
Although a drone is considered an unmanned aerial vehicle, the drone pilot should still know what they’re doing. Having professional liability insurance as part of your comprehensive drone insurance policy will help pay for allegations of financial loss as a result of your drone. This is especially true if you use your drone to serve your clients. If a drone fails to capture a certain area when flying over a plot of land, your client might try to sue you for the drone’s error and having coverage can assist you. Be careful not to get tangled up in business claim scenarios.
Drones are small but mighty and cause physical damage. They are an important piece of equipment that can be used for the unique needs of your business and your clients. That’s why you’ll want to be properly insured. In Canada, you can be held liable for flying a drone that causes damage. Any claim could be detrimental to your business, and your pilots should know this. You don’t want to deal with the consequences of a personal insurance claim.
Reach out to BrokerLink today
Having insurance mitigates the risk that drones pose to you and others. Although they are a helpful technological innovation, they are not without their flaws. For your safety, it’s best to have insurance just in case. You can find this policy and determine if cyber insurance is right for your business by contacting a broker.
Whether you’re a photographer or a land surveyor, drones can help you get your work done more efficiently. For further information, ask an experienced broker from BrokerLink for help. Contact us today for a quote.
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