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O P I N I O N
As the use of commercial drones by A/E firms expands, the insurance market is evolving as well.
Rise of the drones By assessing how they plan to use drones, and by carefully evaluating related risks, A/E firms will benefit from this new capability.
A s more A/E firms begin integrating drones into their operations, they need to comply with new Federal Aviation Authority regulations for drone use and address a new set of related risks.
However, several insurance companies have begun to offer endorsements to CGL policies that fill this coverage gap. Meanwhile, there is a rapidly emerging market for stand-alone drone liability and property coverage. A/E firms choosing to operate their own drones must comply with the FAA’s new small UAS rule – Part 107, which includes requirements with respect to the weight of the drone (less than 55 “Drones – also known as unmanned aerial systems or unmanned aerial vehicles – offer design firms safer and potentially more cost-effective ways to survey and inspect project sites and/or existing structures.”
Drones – also known as unmanned aerial systems or unmanned aerial vehicles – offer design firms safer and potentially more cost-effective ways to survey and inspect project sites and/or existing structures. Since the FAA implemented new rules for drone use at the end of August, the agency estimates 7,500 small commercial drones will be in use by 2018, including a large number by the construction industry. While many larger A/E firms are purchasing and operating their own drones, others are considering outsourcing the services to commercial drone operators. Both approaches require evaluating related risk management measures and insurance. Historically, most commercial general liability policies written for organizations not primarily in the aviation business include an aircraft exclusion that would negate coverage for use of drones.
Rose Haas
Allison Barefoot GUEST SPEAKERS
See ROSE HAAS & ALLISON BAREFOOT, page 10
THE ZWEIG LETTER November 7, 2016, ISSUE 1175
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