Delaware Business Insurance Update From CNC Insurance Associates, "Use of Drones In Business Has Some Insurance Challenges" 11-20-16

Many business owners are using drones in their daily operations. Surveying job sites, properties, and aiding in repairs, are all practical uses of drones. However there could be problems with insurance. The Federal Aviation Administration now requires any drone .55lbs or greater to be registered. In addition pilots must be certified if the drone is to be used commercially. This is where the insurance issues come in play. Most commercial liability policies exclude damage caused by aircraft. Once a drone becomes registered it is now classified as an aircraft. Business owners are using their registered drones and not realizing they have no coverage if the drone was to damage something or someone.  Also, the property policy will not cover physical damage to the drone itself.


There is good news however. The insurance industry is responding with endorsements that add coverage for the use of drones. Also there are special insurance programs that cover many of the risks when using drones, and are available for business owners to buy. So before you take the controls,  call you insurance professional and make sure to add coverage for your use of  "aircraft" aka your drone. Until next time be careful out there and know your risks.




G. Kevin Nemith, President of CNC Insurance Associates & The Small Business Insurance Center
Serving DE, MD, PA, NJ & VA
www.cncinsurance.com
www.bizinsurancetv.org

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