Insurance as a concept means protection from financial loss. This risk management tool is an efficient phenomenon to face contingent losses. It is a monetary relationship between insurer and policyholder.
It is a promise from insurer to compensate the policyholder at the time of loss against regular payments received.
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Drone Insurance is the newest buzz worldwide in the sector of drones. Drones as an asset is a huge investment itself. An expert Drone Pilot needs immense practice to reach the level.
The supreme problem which hampers the process is the damages caused during the span. This hurdle is now dealt by associating Drone insurance.
We are presenting you a guide with entire information about drone insurance including the concept, process, types, cost and everything else that must be known.
Read below and enjoy carefree flying.
1. Drone Insurance – An Introduction
Drone Insurance is a concept which is meant to cover and compensate in times of damage. These insurance policies are offered by certain UK based insurance companies which are at a highly proficient level in the insurance sector.
The plans are prepared so that the drone owners could be protected from loss and also to decrease the utmost amount of liability. One major factor is that it is mandatory for the commercial drone users to insure their drones. However, it is suggested to give this matter all due regards and insure even recreational drones.
Drone insurance is highly useful for those want to get trained in drone flying. It is a must for the pilots who wish to improve. The fear of monetary-loss while practising drone-flying can be overcome through insuring your gadget which further lets you explore more.
The article aims to make you aware of types of insurance policies, the cost of getting insurance, areas covered, the process of drones insurance and everything regarding drone insurance.
2. Needs of Drone Insurance
The question about the need of a drone insurance demands a wise reply. Drones are assets and the investment upon drones itself is a huge expenditure. The further expenses of drone insurance need more bucks to be spent and therefore the decision must be taken after utmost research.
The prevailing rules and regulations for drone insurance are not much strict and accurate. Drone flying can be either for recreational purpose or for commercial aspects. The hobbyist who flies drones for fun might have their drones covered under home insurance.
This conventional type of insurance of coverage will solely allow the replacement and would render the replacement cost, not the cost of treating damages.
The other angle to the drone insurance is for commercial drones. Drones which are used for business purposes strictly require an efficient drone insurance policy. The policy must cover public liability and must be taken before the commercial use of drones begin.
The rules and regulations do not bring recreational drones under mandatory insurance however the cost of purchasing a drone itself brings the need of insurance into consideration. It is highly suggested to perform detailed research and study before selecting an insurance policy.
The seekers must surely check the status of the company and also their past performances of passing insurance claims. Drone owners must undergo under deep analysis and definitely insure their drones irrespective of the kind of operations performed.
3. Types of Insurance Policies
Drone Insurance is a wide concept which needs detailed structural study. The sector can be segregated into two major parameters, The two distinct types of insurance policies are Damage to the third party which is also named as Liability and damages to the drone which is named as Hull Damage.
The drone companies have different types of policies. The need of following all sorts of rules and regulations regarding drones including the exemption under section 333 and a couple of certifications before the insurance process is a must.
The insurance companies tend to verify these regulations before granting the insurance to drone owners.
The request for underwriting might be accepted by the insurer after certain verifications. The checklist consists of 50-100 hours of flight time, type of ownership, type of websites, type of marketing, areas of flight and any type of UAV pilot training program.
4. Areas of Coverage
The explanation of areas covered under drone insurance could have been a little complex. However, the attempt to ease the concept helps solve the issue. The sections below covers the type of operations and the type of accidents which are covered under drone Insurance.
Given below is the list which contains the types of companies that can apply for drone insurance. Have a look-
1. Legal Agencies
2. Fire Administrations
3. Emergency Forums
4. Security Agencies
5. Traffic Control
6. Agriculture and Farming
7. Construction Sites
8. Ports and Dockyards
9. Project Inspections
10. Railway Maintenance
11. Archaeological Operations
13. Real Estate
14. Film Making
15. Adventure and Sports Photography
Checkout the types of accidents which can be insured under drone insurance policies.
- Damages to Property, Office
- Damage Rented Premises
- Damage due to Terrorism, Hi-Jacking or war
- Damage to Co Worker
- Personal Injury
- Contractual Liability
- Advertising Liability
- Fire Legal Liability
- Liabilities to Third Party
- Liability for Manufactured goods
- Premises and Aviation Medical Payments
- Damage to manned and UN-manned aircraft along with ground crew.
- Damage to UAV and its parts.
5. An Ideal Drone Insurance
A smart consumer is one who looks for all possible options, selects the finest possible and receive due advantages. Drone insurance is one very serious subject. An international traveller needs a policy that offers international coverage. The consideration of fees along with several other perks must be compared and decided. Therefore, a drone owner must check for a few things before choosing a policy so that he enjoys all sorts of possible benefits.
- Insurer’s Reputation
- Policy limits
- Policy Excess
- Region of Operation – UK or international
- Kind of Operation – Commercial or Personal
- Types of Coverage
- Pre-Insurance Necessities
- Other Benefits
6. Process of Insurance
The Process of getting drone insurance begins with obtaining quotations and offers from different insurers. This facilitates comparison and allows you to choose the finest option. In order to receive a quote, you must go to an insurer’s official website and look for a form that offers quotes. The form is to fill with a certain type of details as mentioned below.
- Personal Information including name, address and contact info.
- Desired type of coverage (Hull or Liability)
- The detailed cost structure of your equipment
- Exclusive details about your UAV.
- Area of Operations
- Hours of Flight
- Training Received
- Past accidents/ loss if any
- Exemption under Section 333
The seeker must fill all the details asked by the insurer under Aviation Insurance Form. This is necessary to create a healthy relationship between the two parties. The submission of this at various platforms will let you receive quotations from different companies. You may perform a detailed comparison and chose the most beneficial option. The company so chosen will guide you about the further process and documentation.
7. Process of Filing an Insurance Claim
The process of filing claim is no more a complex task. Our team has listed the step-wise process Read below to know more.
1. Policy Documents: The policy documents offered by the company at the time of insurance narrates all sorts of information about the things offered. The document tells about all the allowances and restrictions as stated by your insurer. You may list the things supported by the insurer.
2. Notification: The insurer needs to be notified to the earliest at the time of any accidents. You must note and keep a record of the place, time and entire description of the accident. A track of people injured and witnesses along with their name, contact information must also be maintained.
3. Authorities: One major step is to get connected with the concerned authorities. One must contact the police in case of mischief, misuse or theft claim.
4. Be Wise: one must not pronounce any sorts of statements without the allowance and permission of the insurance company. This might prevent you from landing into any type of trouble.
5. Post-accident Precautions: One must never discard the damaged property or the drone after the occurrence of an accident. All sorts of possible precautions must be favoured to promote protection.
6. Co-operation: One must always cooperate with the insurance company to the utmost level possible. Working alongside with the insurance company and its employees might save you from being exploited.
7. Allow Inspection: The insurance company must be allowed to inspect and examine the damaged property and the associated parts before the commencement of their repair or disposition.
8. Documentation: The insurance company must be sent all sorts of possible proofs of loss within a pre-set specific amount of time.
8. Prominent Drone Insurance Companies
Our team has brought to you several US-based Drone Insurance Companies which offer decent quotations and efficient benefits under drone insurance. Read below and choose the one which meets your expectations.
- Sutton James Incorporated
- Unmanned Risk Management
- AVION Insurance
- UAV Protect
- Global Aerospace
- Aerial Pak
- Transport Risk Management
9. Guidelines for Flying Drones
The USA has incorporated an authority to look after all sorts of rules, regulations and guidelines regarding drones. The authority named as Federal Aviation Administration narrates the mandatory online registrations for both commercial as well as hobbyists drones which weigh between 250 g to 25 kg.
FAA also pronounced mandatory offline registrations for both types of air-crafts weighing above 25 kg via Aircraft Registry Process.
There are a number of documentations and legal restrictions which are to be reached before flying Commercial drones.
The users must surely have a Special Airworthiness Certificate -Experimental Category (SAC-EC), Certification of Authorization (COA) and an exemption under Section 333.
Apart from the above mentioned regulations, recreational users are must also follow the mentioned guidelines for flying drones.
- Fly drones below 400 feet altitude.
- Keep drones within sight during the flight time.
- Never fly a drone near airports or near a manned aircraft.
- Avoid flying drones around people, houses, and crowded places
- Fly Drones in open spaces.
10. Our Verdict
Drones are undoubtedly getting popular among people of all age groups throughout the world. The ever-increasing fascination and love are simultaneously raging the number of drone owners.
The urge to fly with perfection and perform stunts raises the probability of accidents and serious damages. Therefore drone insurance is the most efficient way out.
Drone insurance is more like a boon which saves you from bearing extra monetary losses. You can perform the entire insurance process without difficulties and further you receive an unbound and unmatched drone flying experience.
The essence of free flying and the perfection can only be received when you are carefree about the future.
So, here comes a guide that shall provide a thorough guidance in choosing your Drone Insurance. Also, it’ll help you narrowing the drones for sale available for buying! Have a read!