Currently, the commercial use of drones is largely restricted and operations are authorized on a case by case basis. The FAA has started regulating commercial drones with proposed rules such as requiring pilots to obtain special pilot certificates, staying away from bystanders and restrictions on when and where they can fly. The proposed rules also prohibit drone delivery of packages. Since final rules have not been implemented, they are not being enforced.
Future of Drone Insurance
Widespread use of drones—private and commercial—poses various risks, ranging from safety to privacy of individuals. Risks arising from the use of drones could best be managed by property and casualty insurers, but only once defined drone operational requirements and performance standards are in place. Complete and clear drone regulation, by the states and the FAA, is necessary before insurers can meet policyholder needs.
Recently, federal regulators announced that recreational drone operators will soon need to register their aircraft. This will allow authorities to trace a drone back to an owner which means it’s vital that you’re in compliance with laws and regulations and have the appropriate insurance coverage.
In areas like drone insurance, where requirements are evolving, it’s important to check with your state insurance department for up-to-date information.
Source: National Association of Insurance Commissioners, “A Birds Eye View of Drone Insurance” http://www.naic.org website. Accessed January 20, 2020. https://www.naic.org/documents/consumer_alert_drone_insurance.htm
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