After 40 years in the aviation insurance industry, we’ve seen rates both skyrocket and plummet for reasons few outside the industry would expect. I’m sorry to say that drone insurance is not the exception. Many tend to think aviation and drone insurance rates are determined by a few key gauges, much like staring at the cockpit of a 1930’s biplane.
However, the reality is that deciphering the altitude of modern aviation and drone insurance rates is more like staring into the cockpit of a modern Lockheed Martin F-35. The advanced electronic warfare, surveillance, and combat capabilities require loads of information that would overload the novice pilot.
When it comes to drone insurance, COVID-19 just added one more gauge to decipher. So if you are looking at stepping into the drone game today, you are going to have to deal with COVID-19 and its effects on drone insurance. Remarkably, because of COVID-19, there is no better time to step into the drone game. So let’s talk drone insurance and COVID-19.
COVID-19 is a Windfall for the Drone Industry
One of the key metrics to decipher is the fact that prior to COVID-19, we were already in the early stages of a drone revolution. For the past 20 years, drones have been on the frontlines of the Global Wars on Terror and, as is the case with most military technology, it has been making its way to the civilian market. Recreation, mapping, photography, real estate and beyond, the functions of the aerial drone are just now being fully realized.
COVID-19 has required that industry of all kinds require less human to human interaction and the looming drone industry was more than willing to answer the call. Functions that normally required at least some human contact have been outsourced to drones during the national and global lockdowns. For better or worse, most of the industries are not going back to the old.
Much like a pro-horse advocate railing about the dangers of the Model-T, once they take a trip in half the time and half the costs, they have a change of heart. You can expect the skies above to be more crowded with drones than ever before as a result of COVID-19. This volume may sound like a good thing for drone insurance, but it also means the likelihood of an incident will increase as well. You can be sure that drone insurance will play a heavy role in shaping the future of this emerging industry and those without drone insurance stand to lose the most once incidents begin to spike.
Drone Insurance is Done Right by the Professionals
The next factor influencing the drone insurance market is the pop up fly by night drone insurance policies and programs. Where there is demand, there will be a market and the drone insurance industry is seeing more demand than ever. The downside is that new entrants into the aviation insurance game may not be prepared for the claims to come. Look, anyone who enters the insurance industry hopes and prays that they will have as few claims as possible. However, those that endure the insurance industry understand that claims will come and sometimes, they will be large.
Recreational drone operators may find some relief in the new entrance of these various drone insurance providers. Though, I would still caution you against risking the welfare and financial security of your family by failing to properly cover your Saturday afternoon hobby. Meanwhile, commercial drone operators in any capacity have no business trusting anyone but the established professionals with this new and emerging field. You have too much to lose and the livelihoods of more than your own family often hang in the balance.
Ultimately, this is why top tier organizations hire BWI to serve as their broker for aircraft small and large. A drone may be a new creation, but an aircraft by any other name is still an aircraft. The drone insurance market will be affected by the aviation insurance market as a whole. The two will always be explicitly connected.
If your insurance provider is not ready to handle a big claim for a traditional aircraft, then they are not ready to handle a large claim from a drone incident. We’d be happy to navigate these waters for you and see to it that your drone has the proper insurance to give you, your family, and your organization peace of mind. Flying drones is supposed to be fun and it is. Worrying about the proper insurance coverage is not always fun, but that’s our job. If you would like for us to handle that for you so you can take the skies in peace, please don’t hesitate to reach out.
A commercial drone insurance policy from BWI, written through an aviation insurance company is a solid way to protect your drone business. Having a full annual insurance policy not only saves you money, but also gives you a leg up on your competitors when bidding for jobs. Most employers will require a substantial insurance policy and having a full annual policy shows that you are serious and well prepared.
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Get a full commercial drone insurance quote from BWI today. Our professional agents are licensed, well-trained and highly experienced in managing the risk of drone businesses. Call us at 800.296.8595 or submit a quote request online here.