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Insurance

5 February 2023
The Droning Company&rsquo;s resident drone expert Chris Fravel interviews Product Marketing Manager Elad Shalev and Customer Success Manager Leo Arnan of <a href="https://www.skywatch.ai/us/main-page" target="_blank" rel="noopener">SkyWatch</a>&mdash;an aviation insurance company specializing in drone insurance. SkyWatch creates innovative, easy-to-use tools that empower drone operators to fly safely, manage their flights seamlessly, and make sure they are insured at a reasonable price.
SkyWatch was founded in 2016 by Tomer Kashi, Ori Blumenthal, and Ronny Ahituv.
<h5>Watch the Interview</h5>
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SkyWatch Offers "Smart Insurance for the Sky"

Trending News

5 September 2022
According to the Federal Aviation Administration (FAA), there are nearly one million drones registered in the U.S. and over 200,000 certified remote pilots who hold a small Unmanned Aircraft System (sUAS) rating.
Drones are classified as aircraft by the FAA and equivalent regulatory bodies around the world. Because aviation or aircraft exposures are typically excluded from general business or homeowner&rsquo;s policies, it is important to fully understand your insurance and risk management options to protect yourself appropriately.
Global Aerospace and other companies provide comprehensive UAS policies that are tailored to each individual operator. Insurance can be provided for operators in a variety of fields, whether in real estate photography, construction or agriculture. The insurance industry and offerings available to protect businesses can be confusing. This article will help explain the options.
<h5>What Is Drone Insurance?</h5>
There are two components to a drone insurance policy. Most drone insurance policies afford third party liability coverage. Many operators choose to add physical damage, or hull coverage.
<h5>Third Party Liability</h5>
Third party liability insurance protects the policyholder against liability to others in the event that property is damaged or people are injured while a UAS is operated.
A policyholder can purchase additional coverage for personal injury liability (for example, to protect against claims for invasion of privacy), non-owned liability (which applies to property damage or bodily injury caused while operating someone else&rsquo;s drone), medical expenses for others, premises liability and war perils (such as damage resulting from a malicious act).
<ul>
<li>Standard limits: Limits are between $1M and $5M.</li>
<li>Additional limits: Limits of $25M and higher are available for insureds who commit to following good operating procedures and using pilots with appropriate training.</li>
<li>Premium: For a single drone carrying a $1M limit, the cost will typically be around $575 per year. Premium for operators who have multiple drones will be considerably lower than that, especially as the number of insured units increases.</li>
</ul>
A comprehensive UAS policy typically includes:
<ul>
<li>Worldwide application</li>
<li>Medical expenses</li>
<li>Legal defense</li>
<li>Contractual liability</li>
<li>Invasion of privacy</li>
<li>Bail bonds</li>
</ul>
<h5>Physical Damage Coverage (or Hull Coverage)</h5>
Physical damage coverage affords insurance for damage to a policyholder&rsquo;s drone and other items that are used to support the drone business. It is a common addition to a UAS policy. Many would equate it to coverage for damage to an automobile in the event of an accident.
In addition to coverage for physical damage to the drone, some operators choose to purchase insurance for physical damage to other UAS-related equipment, such as expensive thermal cameras, multispectral or LiDAR equipment, gimbals, tablets, controllers or a carrying case. Physical damage insurance is recommended for most independent operators as the loss of their equipment can severely impact their business.
<ul>
<li>Premium: A percentage is applied to the insured value of the UAS to calculate the premium. For example, for a drone with an insured value at $1K with an 8% hull rate, the hull premium would be $80. Rates vary based on exposure for the unit, use, utilization, loss history, pilot experience and type of drone.</li>
<li>Deductibles: Deductibles are the amount the insurer will deduct from the loss before paying up to the replacement cost. Typical deductibles are 5% to 10% of the unit&rsquo;s insured value, while higher deductibles can apply to more expensive units.</li>
</ul>
<h5>What Else Should You Consider in a Policy?</h5>
Pilots Insurance policies often include a pilot warranty, which can limit the individuals who are insured under your policy. Policies should provide a broad pilot warranty that allows flights with any appropriately licensed pilots. Manufacturer Coverage Some UAS manufacturers offer warranties that provide some level of coverage for physical damage events. If you do purchase such a warranty with your drone, it is important to understand the &ldquo;fine print&rdquo; and determine whether there are exclusions that apply in the event of, for example, theft or complete loss of the drone.
Non-Owned Coverage Insurance for claims arising out of the use of drones which are not owned by the insured is available to protect against liability claims and claims arising out of physical damage to rented equipment. Often, operators need to rent high-valued camera equipment for certain jobs. Short-term rental insurance or annual policies that provide flexibility to rent equipment throughout the year are usually available from your insurer. Non-owned liability coverage also applies to situations where other operators are flying on behalf of the primary insured.
Certificates of Insurance and Additional Insureds Operators are typically required to show evidence of insurance prior to arriving on the job site, usually in the form of a Certificate of Insurance. A certificate may also be required by a party who requires additional insured status. While some companies will impose a charge for each certificate issued, many insurers do not.
Pick Your Partner In addition to the policy provisions, it is important to work with insurers who understand the drone business, offer the flexibility needed to operate efficiently, provide timely responses and have an experienced claims team in the event the worst happens. Some even offer free or discounted safety resources and courses, similar to those offered by Global Aerospace through its partnership with DARTdrones.
<h5>How To Get Coverage</h5>
Purchasing an aviation insurance policy is not like purchasing auto or other insurance, where one can simply log onto a provider&rsquo;s website. Due to the unique nature of aviation insurance, to purchase a policy, you need to go through an intermediary.
While that producer can take the form of online portals, mobile phone apps or a traditional broker, there are no direct options to purchase insurance. And, unlike auto or other lines of insurance, where there are multiple options, your options for purchasing drone insurance are somewhat limited to a handful of markets.
Global Aerospace and other insurance providers work with several of the leading drone producers, wholesalers, and agents.
The Droning Company has chosen to partner with Rob Oldroyd at Moreton &amp; Company to provide both excellent service and expertise to our members. The following link allows The Droning Company members to purchase Global Aerospace drone insurance through Moreton &amp; Company&mdash;<a href="https://www.moreton.com/" target="_blank" rel="noopener">CLICK HERE</a>.
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Drone Insurance 101

Drone Operation

Drone Facts

Before you decide to purchase a drone, it is important to consider the types of insurance available. As a drone pilot, there are many important factors that must be taken care of. This includes a drone license, registration, and insurance. Having drone insurance is essential in the event of an accident. Even the most experienced drone pilots need to obtain insurance coverage to protect their best interests and others. This guide will give you a good idea of how drone pilots can get the most insurance coverage for the best price.&nbsp;
A good thing to know is that you don't need to spend a lot of money to get drone insurance. In fact, depending on the type of drone you have and how you plan to use it, chances are that your drone can be insured through your home insurance policy.&nbsp;
There is a wide range of drones that are available. Some people use them as a hobby, while others use them professionally. They can range from inexpensive to high-end, which can cost as low as $40 and over $2,000.&nbsp;
Whatever the case is, insurance is important and you should explore your options to ensure you are getting the most from your insurance policy.&nbsp;
<h3>Does Home Insurance Cover Drones?</h3>
The great thing about home insurance is that many policies would cover a drone the same way your personal property would be covered. Depending on who your insurer is, you may not even have to pay an additional fee to cover your drone.&nbsp;
It is always best to contact your home insurance company and ask them how your personal liability coverage covers drones. However, it is important to keep in mind that not all home insurance companies are willing to cover the personal liability of drones because of how it is used and because it is considered an aircraft.
The situation regarding drones is certainly everchanging, so you should never make any assumptions without checking with your insurance company and other insurance companies. However, there is still a good chance your home insurance coverage will cover your drone. It is worth checking with your insurance agent for clarification as every policy is different.&nbsp;
If your home insurer does not provide personal liability protection for your drone, then there are many other fairly low-cost insurance policies to choose from.
<h3><a href="https://www.thedroningcompany.com/">Do I Need Drone Insurance?</a></h3>
Many people associate drones as being a fun hobby or refer to them as &ldquo;toys.&rdquo; However, the reality is that drones are far from being &ldquo;toys,&rdquo; as they are much more sophisticated than people think. In fact, they are formally referred to as Unmanned Aerial Vehicles (UAV) or Unmanned Aerial Systems (UAS). The Federal Aviation Administration (FAA) refers to most drones as aircrafts. This blog will teach you <a href="https://www.thedroningcompany.com/">how to get drone insurance</a>.
Drone-related accidents do happen and can occur due to a number of reasons. One of the most common causes of a drone accident is due to the operator losing control of the drone or the drone suddenly runs out of power. It is important to know that not all drone-related accidents are caused by recklessness or negligence. Anyone flying a drone can experience an accident, resulting in personal injury and medical expenses.
<h3>What Does Drone Insurance Cover?</h3>
There are many scenarios in which drone insurance can come in handy in the event of a drone-related accident. You should discuss your personal drone insurance to determine what drone insurance can cover. Here are some examples:
<ul>
<li>If the drone hits and damages a powerline, resulting in a blackout in the neighborhood, you can be held liable for the damage to the power lines and the damages to everyone who lost power.</li>
<li>A drone accident can happen anywhere. Perhaps you lost control of your drone or the battery suddenly ran out, severely injuring someone. This can result in a personal injury and expensive medical bills that you will be responsible for.</li>
<li>If you lose control of your drone or the battery runs out, resulting in the drone crashing into your neighbor&rsquo;s car, you can be held responsible for the damage to their vehicle.</li>
</ul>
<h3>What to Ask the Insurance Company</h3>
Whether your home insurance policy covers liability for drone usage or if you have to contact a new insurance company for drone insurance, here are some important things to ask the insurance agent:
<ul>
<li>Does my insurance cover personal injury?</li>
<li>Does my insurance cover invasion of privacy claims?</li>
<li>Does my insurance cover property damage?</li>
<li>Does my insurance cover medical expenses stemming from drone use?</li>
<li>What is my liability limit?</li>
<li>Can I purchase umbrella insurance for more coverage or can I increase my liability limit?</li>
<li>What exclusions apply to my liability coverage?</li>
<li>What is the deductible?</li>
</ul>
If you are considering purchasing a drone, these are extremely important questions to ask when speaking with insurance companies to protect your best interests.&nbsp;

Featured News InsuranceSkyWatch Offers "Smart Insurance for the Sky"

Featured News Trending NewsDrone Insurance 101

Drone Operation Drone FactsDo You Need Drone Insurance?