Drones are quickly becoming one of the fastest growing sectors of the technology industry. As Drones can be difficult to learn how to fly and command properly, they can also be a challenge for retailers & manufacturers to find product liability coverage for the drones they manufacture, distribute, or service.
As an example of some of the product liability insurance we can provide for Drone Manufacturers, Drone Retailers, Drone Services and Drone Filming Companies, we can insure the following for both operational and commercial Drone uses:
Is Product Liability Insurance for Drone Manufacturers, Services & Distributors is Difficult to Obtain?
Not for us. As you may not know the growth of Drones has created quite stir in the world. Their speedy adoption into the world and apparent misuse has been the cause of them requiring registration as well as their being banned from several locations due to the risk that follows Drone use. As useful as drones have been in the military and the firefighting sectors, in the hands of unskilled pilots, multitudes of people have been injured by them and millions of dollars in property damage have insued from their misuse, which why most insurers shy away from these types of risks.
Our individual risk team has the knowledge and experience to help protect clients who manufacture, distribute, or service Drones from product liability claims, suits and losses.
Drones and Drone Use is Specifically Excluded from your Commercial Business Insurance Policy.
You heard that correctly. In June of 2015 ISO, or the Insurance Services Office penned an endorsement called the Unmanned Aircraft Exclusion which was specifically targeting Drones. The endorsement states that Bodily Injury, Property Damage as well as Personal Injury that arise out of the ownership, use, maintenance, and entrustment to others of Unmanned Aircraft (Drones) are excluded from coverage. It goes on to define Unmanned Aircraft: “Unmanned aircraft” means an aircraft that is not: 1. Designed; 2. Manufactured; or 3. Modified after manufacture; to be controlled directly by a person from within or on the aircraft.
When considering Drone Insurance the Following are Considered Commercial Operations:
The FAA currently authorizes the use of drones for commercial or business purposes on a case-by-case basis. Activities that are defined as commercial use include:
- Selling photos or videos taken from a drone.
- Using drones to provide contract services, such as industrial equipment or factory inspection.
- Using drones to provide professional services, such as security or telecommunications.
- Professional real estate or wedding photography.
- Professional cinema photography for a film or television production.
- Providing contract services for mapping or land surveys.
Placing Drone Product Liability Insurance through us offers you benefits such as options for:
- Product Liability Insurance Coverage for Discontinued Drone Products & Accessories
- Product Liability Insurance Coverage for new and start-up Drone businesses
- Product Liability Insurance Coverage for Commercial use Drones
- Product Liability Insurance Coverage for Professional Drone Operations
- Premises Liability for your Drone Manufacturing Facility, Drone Retailing Facility or Drone Servicing Facility
Who Should Have Drone Product Liability Insurance?
Anyone that is responsible for the design, manufacture, sale, repair, use or
distribution of a Drone component or end user product. This applies to any
business or individual that manufactures his own product or even if the
product’s manufacturing is subcontracted out by another operation, even
if the operation is overseas.
How is a Drone Liability Insurance Policy Rated?
A Products Liability Insurance Policy is rated on several factors.
- What is the product you are covering
- How many of these products will be distributed into the market
- What are they used for and who will be using them
- How long are they intended to last
- What are they made of
- Where are they manufactured
- Who is manufacturing your product
- How clearly defined are the usage instructions, directions and
guarantees and or warranted that are provided with the product
- What claims does the manufacturer or distributor make about the product, either in writing, demonstration or in media.
How Much Does Drone Product Liability Insurance Cost?
Product liability insurance costs for Drones are much like any other liability
insurance product. There is no real average rate because they are based on
the specific type of product you manufacture, retail or market. There
are some products that pose very little potential to cause harm or
damage and there are others that have a higher propensity to be risky,
and therefore carry higher premiums.
How much Product Liability Insurance do I need for my Drone Operation?
The amount of coverage required can vary, important factors to consider when shopping product liability insurance limits are: How much coverage do my vendors require me to have to stock my product? What do I stand to lose if our Drone manufacturing company is sued? Because Drone injuries and damages can be severe or deadly, you may want to discuss your insurance requirements with vendors or an attorney before making any decisions.
Drone Repair Companies
Drone Replacement Part Manufacturers
Real Estate Agents Using Drones
Drone Replacement Part Retailers
Drone Airfield Operations