2 Main Drone Coverages for Public Entities
It’s a Bird. It’s a Plane. Oh no... it’s Just Another Drone.
It seems everywhere you look there’s another drone in the sky. Are all those drones used for recreation, government work or private company use? Well, the answer is yes. The real question public entities should be asking themselves is: are their drones properly covered? And the answer is likely, no.
Drones are so specialized that the exposure is excluded from the general liability coverage and a specialized drone policy will need to be placed. So, how do you properly
First-Party/Physical Damage coverage is when you file a claim with your own insurance company. For example, the village’s drone crashes and the village files a claim with their own insurance company to be reimbursed for the cost of the drone.
For First-Party coverage drone policies include, but are not limited to:
- The drone itself (also known as “Hull” coverage)
- The drone’s payload which could include attached cameras, sensors, etc.
- Ground equipment which helps control and operate the drone
Essentially, a public entity’s property policy wouldn’t cover a drone. And although drones, their payload
Third-Party Liability coverage is when a third party files a claim on your insurance. For example, a drone crashes into a private home and falls onto an individual. The roof is damaged, and the individual was rushed to the hospital with injuries. The property owner and individual can sue the municipality for their damages and bodily injuries.
For Third-Party coverage drone policies include, but are not limited to:
- Liability arising from the ownership, maintenance or use of a drone. Coverage includes, but may not be limited to:
- Property damage
- Bodily injury
- Standard Liability limits begin at $1,000,000 but can easily and affordably be written up to $10,000,000 and above
Public entities are the most critical operators of drone technology – think about fire & rescue, FEMA, law enforcement, natural disaster inspection, traffic control/motor accident assistance, etc. Public Entities become more comfortable using the technology, they’ll also need to understand how to protect themselves and their drones.
If your public entity owns and operates a drone and you’d like to learn more about the insurance options, please contact one of our municipal experts!
- 5 Drone Updates You Need to Know
- More Than Blue Skies Above Us – The Growing Use of Unmanned Aerial Vehicles
- 5 Public Liability Exposures for Municipalities
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