Drone Insurance coverage: All the things You Want To Know

Every professional service provider knows that drone insurance is an important part of doing business. Here, drone insurance specialist Yuval Caspi explains how it works, what to look out for, and how to make sure you are covered in the event of an accident.

Managing Mayhem: A discussion with Yuval Caspi, Skywatch

By: Dawn MK Zoldi, guest author

This week I had a great chat with Yuval Caspi from on the InterDrone Drones at Dawn podcast Skywatch. Yuval is a licensed insurance broker and drone insurance specialist. For the past two years, she has worked closely with drone pilots and companies from different sectors to understand their different supply needs. Here she answers some of the most important questions about insurance from drone service providers (DSPs).

Dusk: Many DSPs ask: Do I even need insurance? “What are the top five reasons people should purchase insurance for their drone operations?

Yuval: There are usually two main reasons people get coverage and five major considerations as to why they should. The two main reasons are: (1) Cover for onefor its own sakes own business proposition or (2) meeting with a customers demands. Insurance is always about working safely, which is always the main concern. Having insurance on board is the first step towards safe operation. Second, it establishes the DSP as a professional. As mentioned earlier, most companies that hire DSPs require insurance. Having it upfront will save you time and empower a businesss credibility. Third, it lowers the risk and is useful for obtaining exemption permits. Fourth, you can fly with peace of mind knowing that if something goes wrong you are covered. After all, it helps to raise public awareness and promote the entire drone industry if you can remedy a mishap and be responsible for possible breakdowns. Ultimately, the goal is to have a policy that suits your own business wants and needs, but can be modified on the go to suit customer needs if necessary.

DAWN: Can you briefly explain the different coverages and when in general someone needs one over the other?

Yuval: Good aviation guidelines provide third party aviation liability that includes property damage, personal injury, and personal injury related to accidents caused by your drone operation as opposed to everyday accidents. Personal injury refers to medical expenses and physical accidents, while personal injury refers to covering defamation, defamation, or invasion of privacy. This type of coverage protects you from accidents caused by your drone operations that result in damage by third parties. The need for aviation insurance is often different from general liability insurance. In fact, damage caused by types of aircraft, including drones, can be ruled out by your company or LLCs general liability policy. For this reason, an aviation policy is likely to be required to complement other coverage. When your drone operations are included in your homeownerWith this policy or any other plan, you want to make sure that it includes commercial use, not just recreational use. If you are a professional (hired by a client to perform an operation) you want liability for third party drones because if something should happen you want to make sure everyone around you is protected. If you are flying for recreational purposes, this type of policy will protect you from third party harm. Hull coverage differs from third party liability. It protects your drones and equipment from physical damage, loss, or theft. This coverage is usually optional and it really is up to you to decide how much of your investment you want to protect.

DAWN: What?Is The Process To Get Aviation Insurance?

Yuval: You can enable a policy in a way that best suits your needs. You can activate it over the phone with a broker and have assistance throughout the process. Alternatively and faster you can activate it online. ONSkyWatch.AI Policies can be accessed online in less than five minutes through an easy-to-use interface or an app on your phone. You can enable the policy to start immediately or book it 60 days in advance, depending on your timeline.

DAWN: What are the biggest mistakes you’ve made?Did you see people putting this in hot water?

Yuval: From an insurance perspective, I haveI’ve seen people fly without fully understanding their reporting. Just like in business, you need to know your parameters and limits. The operational breakdowns are I.Usually they are pilots who have not planned their flights in advance. So overall, whether for insurance or actual surgery, meI would say that it is just as important to have all the documents in order before takeoff as the flight plan itself.

DAWN: What are some practical tips for you?d give to keep a company to avoid trouble?

Yuval: If you fly commercial and need to meet insurance requirements, don’t make assumptions. Understand your needs, ask questions, tick your ts, and period your is then buy the policy. So often, people just buy a policy because it’s easy. The hard part comes when they find out they haven’t been given the correct cover or boundaries and as a result their work permits are delayed or fall through the cracks. Taking the time to understand what you need ahead of time is the time-consuming part. Enabling the policy is the easy part. I often work with people through this process to get direct first-time coverage.

DAWN: What practical advice would you give someone once they have their insurance?

Yuval: Always have a plan of what to do in the event of an accident. The II will never have an accident. “The mentality won’t get you very far. WeI’ve seen some of the most experienced and professional pilots involved in accidents. It is recommended that you have standard operating procedures (SOPs) in place to resolve a mishap.

DAWN: Accidents happen. What tips would you give someone who has an accident?

Yuval: As mentioned earlier, you should always have a plan or SOPs before the accident. This includes documenting everything, taking photos, and getting witness information. If you keep calm and follow your SOPs, you won’t be able to act impulsively or do something you may regret in the stress of the moment.

DAWN: How easy is it to file a drone insurance claim?

Yuval: It should be easy for any insurance company to make a claim. The more details you provide, the simpler the process and the faster it will complete. Download your flight logs, record accident details and collect important documents like drone purchase, Part 107 license, registration data, etc. Our process is online and digital.

DAWN: How quickly are entitlements paid out?

Yuval: The payment deadlines for claims depend on the facts for each company. Is it a total loss? Is property repairable? Every situation is different, but the key is that the applicant provide all the necessary information as soon as possible. We know repairing your drone or buying a new drone is vital to getting your business back up and running. If all the correct information is provided from the start, claims will be paid within a few business days.

Dawn MK Zoldi (Colonel, USAF, retired) is a licensed attorney with 28 years of active military and federal service in the Air Force Department. She is an internationally recognized expert in the law and politics of unmanned aircraft systems, a columnist for Law-Tech Connect ™ for Inside Unmanned Systems magazine, recipient of the Woman to Watch in UAS (Leadership) Award 2019 and CEO of P3 Tech Consulting LLC. You can find more information on their website at: https://www.p3techconsulting.com.

Miriam McNabb is Editor-in-Chief of DRONELIFE and CEO of JobForDrones, a marketplace for professional drone services, and a passionate observer of the emerging drone industry and regulatory environment for drones. Miriam has written over 3,000 articles focusing on the commercial drone space and is an international speaker and recognized figure in the industry. Miriam graduated from the University of Chicago and has over 20 years experience in high tech sales and marketing for new technologies.
For advice or writing on the drone industry, email Miriam.

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