Drones are all the rage these days. With the capability of recording and capturing top-quality shots in various locations, these devices have become popular among enthusiasts and hobbyists.
And since you opened to read this article, chances are that you might already have one or are planning to get one soon. In either case, you might be concerned if you should get drone insurance or not. This question is especially important if you run a drone business or use a machine other than for sports or recreational purposes.
Dig in to explore why you may require drone insurance, what options are available, and when you should get one.
Should You Get Drone Insurance?
Do you know that the drone insurance market globally grew from $1.06 billion in 2020 to $1.13 billion in 2021? Within just one year, the market experienced a growth rate of 6.1% (even with all those Covid lockdowns), primarily due to the increased use of drones.
Drones, like any other thing in this world, are prone to risks. For instance, during a faulty collision, they might damage someone’s property or can even cause injury due to their poor operations. When stolen or accidentally burned in the fire, a drone may incur damages to the owner, which many may not be able to pay.
These unmanned aerial vehicles also need protection because you might have invested thousands of dollars in purchasing one. However, not all drones require insurance.
If you fly drones designed for hobbyists or recreation, you may not need to invest in an insurance policy. On the other hand, if you fly a commercial drone, it is imperative to consider insurance as an essential need.
Certain businesses use drones as a crucial part of their business. These include package delivery, commercial photographers, filmmakers and videographers, humanitarian aid, and emergency response teams.
Simply put, if you want to set up a commercial drone business, insurance is key. If you have none or are inadequate, you might leave your company open to many risks. Drones are, unfortunately, not inexpensive, and to save your money from getting wasted, getting an adequate insurance policy is essential.
Available Drone Insurance Policies
The Federal Aviation Administration doesn’t have any set rules on drone insurance as yet. This means that there is no compulsion to obtain liability coverage. That said, it is always wise to research and check the policies your state offers.
Drone insurance isn’t compulsory but a wise investment. It helps mitigate risk and also protects your money. There are two primary types of insurance available for drone owners.
Hull Insurance
This one covers the damages that might happen to the vehicle itself. It is a worth considering option, especially for systems with costly sensors, cameras, and other expensive parts.
Drones often get damaged after a crash, and so specific replacements are required to make the machine operational again. The cost of such replacements is usually too high, and a hull insurance policy may prove fruitful to cover that. You might need high hull insurance for your expensive drones and low coverage for your inexpensive units.
Liability Insurance
If your drone has accidentally caused damage to a third party, liability insurance may rescue you from this costly expense. The damage could be both to the body or property.
Liability insurance might be necessary if your company plans to set up an in-house operation. Most businesses even demand their service providers to show proof of liability insurance before making a purchase.
Other lesser-known drone insurance policies include non-owned UAV insurance and cyber liability insurance. The first one is necessary for people who buy drones for rent for work purposes. This insurance covers third-party damages and injuries.
Cyber liability insurance provides adequate coverage against cyber attacks that might cause uncontrollable physical damage. For example, certain criminals often take control of drones during their flights. In that case, cyber liability insurance waives you of all the responsibility related to a possible crash.
Is Drone Insurance Expensive?
Many people don’t invest in drone insurance because they perceive it to be expensive. But when weighed against its benefits, the cost of buying an insurance policy is pretty acceptable.
A drone insurance policy is quite like car insurance, and its price varies according to your chosen plan. Certain important factors are considered before an insurance policy is given a price tag. These factors include:
- Number of drones you own
- The types and sensors and cameras that they may have
- Your experience with flying drones
- Maintenance records
- Any safety precautions taken
If your team follows strong safety precautions and is well-trained with a good record, you might get an insurance policy at an excellent rate. However, if you have been involved in many drone accidents in the past or lack the required expertise, your insurance policy might be expensive.
How Much Drone Insurance Coverage Should You Get?
You need drone insurance if you use the machine for commercial purposes, but how much should that be? You can get drone coverage within a wide range, so discussing the correct amount with your risk and legal management department is better.
The amount of coverage you may require also depends on your industry, risk potential, and services. This is why it is imperative to consider the nature of your business, its consumer base, and other assets to come up with an adequate amount.
What to Look for In a Drone Insurance Provider?
If you don’t want to experience fraud, make sure that you purchase a policy from a reputable drone insurance provider. Look out for service providers with a good customer base and impressive plans to suit everyone’s needs. Also, ensure that each plan’s price is competitive and fair.
Conclusion- You Need Drone Insurance to Reduce Risk
If you fly a drone for commercial use, you need drone insurance to mitigate risks and save your pocket in case any accident happens. You can also get one if you use the vehicle for entertainment only.
There are two common types of policies available, and you should select one that meets your requirements. While choosing a plan, ensure it provides adequate coverage and protects your asset from external factors.
BWI Aviation Insurance is an excellent insurance provider for pilots and drone owners. Get a quote now and fly with peace of mind.
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