You have invested in a high-tech drone for your photography business, mapping services, or agricultural monitoring. One day, while capturing aerial shots, a heavy wind causes your drone to crash into a building, damaging expensive equipment and injuring a passer-by. The repair costs, legal claims and financial burden could be overwhelming. This is where drone insurance comes in as a safeguard against such unforeseen risks. Let's discuss drone insurance in detail.
What does drone insurance include?
Drone insurance covers the following:
Drones, no matter how advanced, are prone to accidents. Crashes can damage nearby property and even injure people, whether due to pilot error, mechanical failure or environmental conditions.
For example, you use a drone to film a wedding. Everything goes smoothly until the drone suddenly malfunctions and crashes into a nearby luxury car. In this scenario, the insurer will compensate for losses for such incidents.
- Protection against theft or loss
Drones are expensive and can be a target for theft, especially when operating in remote or high-risk areas.
Suppose you are a professional photographer covering a wildlife documentary in a forest. You briefly step away, only to return and find your drone missing. Without insurance, you have to bear the entire cost of replacing it. Drone insurance covers theft, relieving you of financial burden.
With drones capable of capturing high-resolution images and videos, privacy concerns pose a significant risk. The legal costs can be substantial if someone files a lawsuit against you for unintentional privacy invasion.
For example, if you capture aerial footage of a property for a real estate listing, but the neighbouring property is a restricted area, any captured footage could lead to a lawsuit. The insurer would cover the costs.
You own a drone delivery service and have promised a customer an urgent medical supply delivery. Midway through the flight, your drone’s GPS system malfunctions, causing it to lose control and crash into a waterbody. The medical supplies are lost and your drone is beyond repair.
Without drone insurance, you bear the cost of the lost supplies and the drone replacement. But with an insurance plan that covers technical failures, you are compensated for the damage, ensuring your business remains functional.
What factors determine drone insurance premium?
The following parameters influence the cost of drone coverage:
- Type of drone: The model, size and specifications of your drone significantly impact your insurance cost. A high-end commercial drone with advanced features and a high payload capacity will have a higher premium.
- Flight location: Where you operate your drone also matters. Your insurance premium will be higher if you frequently fly in high-risk areas, such as near airports, crowded public spaces or construction sites.
- Claims history: Just like car or home insurance, your past claims record impacts your drone insurance rates. If you have previously made multiple claims, insurers will view you as a high-risk policyholder and charge more.
- Additional modifications: If your drone has expensive modifications or additional equipment, such as high-resolution cameras, thermal sensors or LiDAR systems, your insurance cost will rise.
What does drone insurance exclude?
In certain scenarios, drone insurance won't cover damage or third-party liabilities. These include.
- The policy does not cover any damage it sustains if you use a drone for illegal or unauthorised activities.
- Standard policies do not cover your drone's normal wear and tear over time, such as mechanical breakdowns or gradual deterioration.
- If someone not authorised by your policy flies your drone and causes damage, it won't be covered.
- If the drone is damaged because of war, acts of terrorism or related events, the insurer will not cover the repair costs.
- Any damage or loss resulting from nuclear hazards or radiation is subject to policy exclusion.
- The insurer will not cover any deliberate acts that lead to damage or loss, such as intentionally crashing your drone.
- Costs associated with routine maintenance, servicing or upgrades are subject to policy exclusions.
- If your drone sustains damage or losses outside the specified geographical coverage area, the policy does not cover them.
Conclusion
Drone insurance is not an unnecessary expense. It is a safety net that protects you from unforeseen financial, legal and operational risks. Whether you are a hobbyist, a business owner or a professional drone operator, having the right insurance ensures that your investment is secure, your liabilities are covered and your business continues to grow despite unexpected challenges.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is advised to verify the currency and relevance of the data and information before taking any major steps. Please read the sales brochure / policy wordings carefully for detailed information about on risk factors, terms, conditions and exclusions. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.