Insurance Coverage 101

Low-cost, On-demand Options For Commercial Drone Operators

- Thomas Bick

The recreational and commercial use of uncrewed aerial vehicles (UAVs) or drones is expected to increase exponentially over the next decade. Operating UAVs is not without its risks. For example, in one published court decision, Philadelphia Indemnity Insurance Company v. Hollycal Production, Inc., an aerial photographer who was using a camera-mounted UAV to take wedding photos was sued by a wedding guest who was injured when the vehicle struck her in the face, causing her to lose her sight in one eye. In recognition of this risk, there is a growing interest among UAV operators in acquiring insurance coverage. Indeed, many commercial UAV operators find that their customers expect them to have such insurance. This article presents a brief primer on the availability of insurance products that cover UAV accidents. Coverage under General Liability Policies

Most businesses protect themselves against liability to third parties by purchasing commercial general liability (CGL) insurance. Such policies typically contain “aircraft, auto, or watercraft” exclusions, which most likely preclude coverage for injuries caused by UAVs. One such exclusion, for example, eliminates coverage for “bodily injury or property damage arising out of the ownership, maintenance, use, or entrustment to others of any aircraft, auto, or watercraft owned or operated by or rented or loaned to any insured.”