The Annual Liability Question

[TreeLineView]

Time to renew my business liability insurance. I have two drones in my inventory. Been using Skywatch for my liability coverage. No Hull coverage. 1-2 drones is $665 for 1M general liability. I am replacing one of my aging thermal drones for a new one and wanted to keep the old one for a backup, but keeping it will increase the annual policy to $1475 for 3-5 drones. Not worth is. Anyone else have other insurance provides they are using for commercial with competitive policies for drones?

 

[Dave Pitman]

I would just continue with the 1-2 drone rate liability. I currently own a dozen drones right now. But when I show up on a job I typically have 2. One to use and 1 as a backup. Their meaning for specifying a "#" of drones is unclear and rather odd, IMO. When I show up, I will fly one, or maybe 2 different craft. That's it. No hull coverage.

 

[jaja6009]

I am not sure I am understanding this.

When you get insurance do they ask you for the number of drones you want insured?
Or do they ask for the individual make, model and serial number?

At work we have to give the insurance company the make, model and serial number for every drone covered. We do not use Skywatch, but I persoanlly use Skywatch but only On-Demand.

 

[Dave Pitman]

They specify "the number of drones in your fleet that you will operate within the policy period, including owned, leased, rented, or borrowed."

They do not require any model or serial # information.

Since they are only insuring the craft during operation, it really makes no sense. What would make the most sense is if they required that you specify all of the drones that you might operate in the period and base the liability rate on the model that would incur the most liability risk during operation. But I suspect they don't bother with that granularity...yet.

 

[TreeLineView]

They specify "the number of drones in your fleet that you will operate within the policy period, including owned, leased, rented, or borrowed."

They do not require any model or serial # information.

Since they are only insuring the craft during operation, it really makes no sense. What would make the most sense is if they required that you specify all of the drones that you might operate in the period and base the liability rate on the model that would incur the most liability risk during operation. But I suspect they don't bother with that granularity...yet.

I have had the current policy for two years and can't remember if they asked me for m/m and serial numbers when I signed up. I did email them asking about adding another drone and they said send the m/m and serial number and they would create a new quote. I haven't bought another drone yet, but asked them to clarify if adding the third drone is just going to bump me up to the next tier with is 3-5 drones and a much higher rate

 

[jaja6009]

Okay, thanks for the clrification. Now I know what I could be in for if I ever do a full annual policy.

I agree with you Dave on knowing all the drones and making a rate that accounts for the overall risk.

 

[MapMaker53]

At work we have to give the insurance company the make, model and serial number for every drone covered.

Our insurance carrier requires the same at my place of employment, plus information about each of our operators including Remote ID Certificate number. We insure the operators. I don't believe damage to the drone is covered because replacement cost of a drone is not a concern.

 

[Dave Pitman]

Liability insurance based upon multiple vehicles / craft owned is a scam that has been perpetuated by the auto insurance industry for...ever. And now, folks don't question it ...much.
Liability insurance should be a single rate based upon
1. The particular operator and
2. The most "dangerous" vehicle or craft operated. The vehicle / craft sitting at home, the office, or for that matter, in it's case in your vehicle, is at zero risk for causing damage. There is no reason why one needs to have liability insurance active on that unit. Yet, a lot, most, of us just pay.

 

[jaja6009]

Liability insurance based upon multiple vehicles / craft owned is a scam that has been perpetuated by the auto insurance agency for...ever. And now, folks don't question it ...much.
Liability insurance should be a single rate based upon
1. The particular operator and
2. The most "dangerous" vehicle or craft operated. The vehicle / craft sitting at home, the office, or for that matter, in it's case in your vehicle, is at zero risk for causing damage. There is no reason why one needs to have liability insurance active on that unit. Yet, a lot, most, of us just pay.

This is kind of why at this time I use on demand.

I don't fly enough job missions to justify an annual policy when running my small drone services company.

I further agree 100% on when I do fly, I only use one drone at a time and the rest of my fleet has zero chance on incurring any kind of loss sitting in their respective case and with no hull loss coverage this is further reinforced.
With on demand insurance I am only paying for the single drone flying at the time of a mission.