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Let's talk Insurance (again) - "Drone Specific" Insurance

Kristina Fowler

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For the past 2 years, I've carried "Drone Specific" liability insurance primarily because one of my major clients insisted on it. "Drone Specific" coverage is just that - losses cause specifically by a drone. It was well worth it for this one client. That client has since been spooked by the DJI data swiping security controversy and canceled my contract. Today, I received a renewal notice for that same policy (almost $800 for 1 year). Since I don't have that client anymore, I decided not to renew the "Drone Specific" coverage and will just go with my standard "Photography" GL coverage.

While I had my agent on the phone I took advantage of the situation to vent my frustrations to her about what I thought was an unfair assessment by underwriters of the potential risk of using drones on any given mission. This $800/year rate has stayed steady for 3 years in a row now. It seems that there should now be enough loss data for underwriters to lighten up on drone exclusions on GL policies. I also think it's totally unfair for underwriters to quote these rates while withholding the loss data that's used to produce the rates. It quotes seems arbitrary. From a practical side, I haven't heard of one catastrophic accident caused specifically by a drone. That's just me. I understand it's a big world and there are probably some memorable episodes out there.

I understand it's the Underwriters and not the agent who determines pricing, but I think the Underwriters are shoving high-dollar quotes down my throat while holding one hand behind their back and not being forthcoming with loss information to justify the corresponding rate.

Frustrated and venting...
 
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If you do a little research you will find that drone insurance rates are almost double what s full scale pilot pays for similar or equal hull and liability coverage. As of my last insurance quote, had I been flying a Cessna 152, 172, or a Piper Archer my rate would have been at least $300.00/year cheaper.

For 2020 and going forward we need to be aware that all aviation policy rates have increased to rebuild their loss “bank”. The California fires from the last couple years severely impacted the loss reserves from every segment of the insurance industry.

It’s not as much insurance as it is assurance. They assure you will be covered in the event of a covered accident while also assuring they retain a tidy profit afterwards.
 
@Fred Garvin Wow, didn't know or even think of that... they have a sUAV specific section or part of a photographic gear?

Do they also offer the per hour Liability similar to SkyWatch? Does the Hull via PPA cover all sUAV in your possession, or do you have to specify each model or Ser# ?

It covers while in flight on a project?


Great tip, appreciate it!!

Joined the PPA, and examined the Insurance.
Starts at $175 for $5000 Equipment, Exp: $20,000 equipment @ $428 annual.
 
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It’s an inexpensive upgrade of the free insurance called PhotoCare Plus. It’s Declared Item, basically add on to your equipment and business liability insurance. I’ve never used the extended flight coverage, just the equipment and general liability. I use SkyWatch for the per hour $1m policy on every mission.
 
It’s an inexpensive upgrade of the free insurance called PhotoCare Plus. It’s Declared Item, basically add on to your equipment and business liability insurance. I’ve never used the extended flight coverage, just the equipment and general liability. I use SkyWatch for the per hour $1m policy on every mission.
I did a quick read... was the base PCP free... I jumped to the equipment section.
If all equipment is in the add-on paid, what does the free base cover?
 
It’s an inexpensive upgrade of the free insurance called PhotoCare Plus. It’s Declared Item, basically add on to your equipment and business liability insurance. I’ve never used the extended flight coverage, just the equipment and general liability. I use SkyWatch for the per hour $1m policy on every mission.
The Skywatch hourly meets my needs... I add the Client to the policy and it meets their requests.
As you stated, makes it very easy to include as an item on the statement, they have a ploicy to match line item.
 
Basic PhotoCare just covers your gear up to a certain amount....when you contact Lockton to upgrade to PhotoCare Plus, they have different packages to offer depending on your needs. I use them for my gear plus general business liability. PPA membership gets you a heavily discounted rate for this additional coverage.

You may or may not get the same as me....insurance varies by state and even where you are in the state....so, what I get where I am in Texas, May be different than what you get in say, New York City......

The Skywatch hourly meets my needs... I add the Client to the policy and it meets their requests.
As you stated, makes it very easy to include as an item on the statement, they have a ploicy to match line item.

Yes, and it’s been inexpensive so far. $15 - $25 per hour depending on location and size of area.
 
Basic PhotoCare just covers your gear up to a certain amount....when you contact Lockton to upgrade to PhotoCare Plus, they have different packages to offer depending on your needs. I use them for my gear plus general business liability. PPA membership gets you a heavily discounted rate for this additional coverage.

You may or may not get the same as me....insurance varies by state and even where you are in the state....so, what I get where I am in Texas, May be different than what you get in say, New York City......

I just joined PPA, so maybe I need to give it a few days to recognize the membership... but it looks like that's the current rate.
It didn't ask location, so maybe took that from my membership profile.
 
It’s an inexpensive upgrade of the free insurance called PhotoCare Plus. It’s Declared Item, basically add on to your equipment and business liability insurance. I’ve never used the extended flight coverage, just the equipment and general liability. I use SkyWatch for the per hour $1m policy on every mission.
Fred,
I am very interested to know more - Do you know anyone who has actually had to file a claim with PPA and how fast and easy it is to get paid on any equipment damage or loss claim? Just interested to know what questions (or proof) you need to show and any hoops you might have to jump through if you file an equipment claim with PPA.

Thank you for sharing any insights you might already know about PPA.
 
I don't have any first-hand experience or knowledge of it. I have not had to file a claim. They do have a part of it that's a "no questions asked" sort of deal where it's up to $1000 with a $250 deductible. I mean, I'm sure they ask some things, but it's a non-proof thing....you just say, someone took my camera from my car, I don't have any receipts for it and it's not on my declared list.

PPA is a member support organization. They exist to help and support their members and times I've contacted them they've been very responsive and even follow up to make sure you're good. I wouldn't think they'd be difficult to deal with....unless, of course, you seem to have more claims than others... that might trigger a more invasive response.....
 
I don't have any first-hand experience or knowledge of it. I have not had to file a claim. They do have a part of it that's a "no questions asked" sort of deal where it's up to $1000 with a $250 deductible. I mean, I'm sure they ask some things, but it's a non-proof thing....you just say, someone took my camera from my car, I don't have any receipts for it and it's not on my declared list.

PPA is a member support organization. They exist to help and support their members and times I've contacted them they've been very responsive and even follow up to make sure you're good. I wouldn't think they'd be difficult to deal with....unless, of course, you seem to have more claims than others... that might trigger a more invasive response.....
Thank for the good information. I do appreciate your help and insight.
 

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