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Initially viewed as a high-priced toy, drones have become a tool for taking aerial photos and video, monitoring crowds, and even spotting wildlife trends. The possibilities are endless for businesses of all kinds, which also means businesses could be held liable for damages caused by a drone.

That’s why the worldwide drone insurance market is expected to top $2.6 billion by 2032, according to an article by Insurance Business magazine.

What does this mean for your business? The Federal Aviation Administration (FAA) has certain requirements for commercial use drones. Commercial use is defined as any usage connected with a business whether using an owned or non-owned drones, and specific rules apply. Learn more about the specific FAA requirements of flying a commercial drone.

Even when flown by conscientious pilots, drones are not foolproof, and accidents do happen. There are numerous incidents of privacy claims, as well as people and property getting damaged as a result of drone usage.

Protect your business

Buy a specific policy to cover the drone and its users. This policy can be issued to cover things such as physical damage, liability exposures, bodily injury and property damage.

Optional coverage is offered for areas such as payload physical damage, spare parts, and increased limits for personal and advertising injury.

Among the common claims caused by drones are mechanical failure, operator error and bird strikes.

Earlier this year the U.S. government sued a resident of Philadelphia for violating FAA regulations. The government claimed the man was flying a drone unlawfully and unsafely in the city.

On the flip side, China-based drone maker DJI sued the U.S. Department of Defense for listing the company as a partner of the Beijing military. DJI claims the allegations are false and causing significant financial damage.

It’s easy to see why drone insurance is gaining in popularity. Bottom line, if you are using drones, owned or non-owned, contact Oswald for help in determining your needs and finding the right insurance program to protect your business.

For more information, contact us here.