It’s a fairly straight forward question that many individuals, LLCs, and organizations are finding themselves asking more frequently these days. You have a drone and along with it, your standard insurance that comes with running an organization or entrepreneurial effort of any size. You are now thinking to yourself, “what’s the worst that can happen and I’m sure I’m covered already.” Well, let’s tackle both questions when it comes to drone insurance. We shall also consider that we are in the early phases of what is sure to be a revolution of drone technology sweeping the globe.
Drones will become more affordable, more common, and there will come a point where our children will not be able to envision a world without aerial drones. I’ll give you the quick executive summary to the question above and that is yes. You absolutely should purchase drone insurance if you plan to operate one in any capacity. If that’s good enough for you, then give us a call at BWI and we’ll get you started. If you need a little more information, stick with me and we’ll get you there sooner or later.
What’s the worst that can happen with my drone?
In 2018, a faulty electric transmission line started a fire in a remote location in California. It is not the first time an electrical fire has caused a wildfire and it certainly will not be the last. An east wind picked up the fire and drove it downhill. Fast forward 17 days later and 85 people had been killed, over 150,000 acres had been burned, and the Pacific Gas & Electric Company was headed for bankruptcy. Known as the Camp Fire event, it was the most expensive natural disaster of 2018 in terms of insured losses.
Now, this wildfire was not caused by a drone. However, the only question you need to ask yourself is if your drone has any remote chance whatsoever of causing a spark. Could your drone find itself in contact with a powerline anywhere in the world? Of course it can. This is just one of the potential disasters that come with operating a drone and as inexplicable as it might be, is it worth the end of your organization?
There is a market for insurance because there is a certain inevitability with disaster. It may not happen to you, but it will happen. That’s why we buy insurance in the first place. Drone insurance is important for all the reasons that you can think of, but it is of the utmost importance for all the reasons you cannot yet envision. Trust me, there is little to be gained by finding yourself a trailblazer in the reasons why people need insurance. Cover yourself.
Am I Already Covered with My Current Insurance?
This is a question that I cannot fully answer for you, but I can say with certitude that if you want to find out if you are covered, then just make a claim. You will find out very quickly if you are covered or if drone operation falls outside of the scope of your current plan. The entire insurance market is predicated on insurance companies only paying when they must. Insurance has saved the livelihoods and futures of countless people over the centuries, but they are not very empathetic towards new and unforeseen areas of coverage.
Namely, if you have not been paying them specifically to cover something, do not expect them to do so when the worst occurs. You may not be able to conceive of every possible disaster or reason why you would need drone insurance. However, your standard insurance company will conceive of every possible scenario under which they do not have to pay if you have not addressed the matter specifically. Are you already covered with your current insurance? I wouldn’t stake the future of my family on it and nor should you.
How Big of a Deal is Drone Insurance to the Future?
There is no conceivable scenario where we have the modern aviation industry without a robust aviation insurance industry. The stakes are simply too high and the inevitability of an aviation disaster is almost certain. Drones are right now where the Model-T was at the dawn of the 20th century. They may seem technologically advanced now, but we have not seen anything yet. In the 1990’s, cell phones were bulky products that you had to plug into your car cigarette lighter. Look it up kids, that was a thing. Now, they are the equivalent of having a personal laptop in your pocket.
The future of drone operation is about to skyrocket across the globe. They offer access to remote parts of the world with little risk to human life and at a fraction of the cost of a human operation. Moreover, the era of COVID-19 has accelerated the need to reach people who are isolated and with as little human contact as possible. I’m not a financial advisor, but investing in drones seems like a pretty healthy bet.
Without commercial drone insurance, this industry will not exist into the future. With increased frequency, there will come an increased likelihood of disaster. This is the future my friends and you need to be sure that you are covered. Here at BWI Aviation Insurance, we are on the cutting edge of this emerging market. We’d love to be a part of your story and ensure you are covered for the future of drone operations. Reach out to us today and save your organization and your family’s livelihood for tomorrow.
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Get a no-obligation, free insurance quote at www.bwifly.com or call 800.296.8595