Expertise in new and emerging aviation risks

Although unmanned aerial vehicles (UAVs) or remotely piloted aircraft systems (RPAS), commonly known as drones, have been around for the better part of the last century, they have become more prevalent with the general public due to their many business and recreational uses.

Like any technology, drones can carry considerable risks for the operators and the general public. Insurance companies are developing new solutions to cover the primary risks while grappling with the rapid expansion of this new aviation industry sector, both in terms of technology and in terms of its applications.

Our team can assist commercial drone operators in evaluating their risks and determining the most suitable insurance solutions to their insurance requirements.

Drone insurance risks

Drone insurance risks can simply be categorised into:

  • third-party property and personal injury risks
  • loss or damage to the drone equipment, including base stations

The value of additional payload equipment such as cameras and sensors can significantly increase the financial value of a drone and should be considered when arranging insurance.

Around the world, aviation authorities and insurance companies are gradually establishing standard rules and regulations for drone services, which means that the insurance needs for this sector are still developing.

Regardless of the regulations regarding drone safety and legal operation, commercial drone operators should also consider third-party liability cover to protect their businesses in the event of a serious loss.

Drone liability insurance

Liability insurance limits are largely defined by existing civil aviation regulations, which are often based on the aircraft's weight. However, such regulations do not always reflect the potential liability in the event of a serious drone insurance flying loss. Therefore, commercial operators should consider the more significant enterprise risk arising from a drone accident and purchase a higher general third-party liability insurance cover.

Drone hull insurance

Drone hull insurance will provide indemnity if you lose or damage your drone aircraft. However, the rapidly evolving technology behind drones can mean that the value of the drone, purely as an aviation platform, can be relatively small compared to the value of the onboard payload – cameras, sensors, etc. Operators should consider a suitable sum insured that is not purely based on the drone aircraft itself.

If you need to discuss a claim with us please call us on 0800 612 2258.

Drone Risk Questionnaire