Insurance for Drones

As FAA guidelines for uses of drones become more clear, there is a growing demand for drone flying academies used be real estate agents, fire & police departments and public safety organizations, and farmers. However, insurance for drones has lagged behind as insurers still struggle to properly underwrite the drone exposure. Some considerations they need to be understood include:

  • What are the things most likely to cause loss? What are loss types most demanded (i.d. liability coverage for property and bodily injury? First part coverage for damage to drone? Defense against lawsuits for invasion of privacy?
  • Quality of drone – what are the basic differences between different types of drones. Do they differ in purpose? How much does a good one cost? Etc.
  • Drone operator – what level of training should we require? How is training quality verified?
  • What are the minimum acceptable components of a Standard Operating Procedures manual? Are there best practices that need to be followed?
  • Can drones be operated in all types of weather? Heat/cold, wind speed, precipitation, etc?
  • Any knowledge of formal marketing surveys done by drone owners? What are their coverage requirements and how much would they be willing to pay? Not just premium, perhaps, but deductibles, coinsurance, etc. also, what limits are needed?
  • Cyber risk. Can a drone he hijacked?
  • What is preferred coverage feature? For example, one insurer provides coverage by the hour using an app.

Project Mentor

Sharon Rossmark l Chief Operating Officer, AeroVista Innovation
Mr. Jim Jones

Heather Harcar

Heather Harcar has 12 years of experience in the insurance industry with work focused on human resources. She has worked in various areas of HR including: benefits, compensation, HR policies, project analysis, and talent management. She earned her B.S. from Illinois State University majoring in Economics. Interests include exercise, travel, and listening to live music.

Competencies needed by the students involved

  • Insurance
  • Drone technology and automation
  • Political science and legal studies
  • Analytical skills – manipulate data and apply statistical analysis
  • Drafting Surveys
  • Research – Extant literature
  • Innovation and creativity – curiosity to try different approaches