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The Great Insurance Information Thread of 2018!

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AviationBroker

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Hello,

My name is Joe Ernster and I am an aviation insurance broker at Bullock Agency, Inc. I have insured manned risks since January of 2011 and unmanned risks since 2015. Since I began insuring unmanned operations, I have added 300+ commercial UAS customers to my books. My clients run the gamut from single pilots with a single "prosumer" UAV to teams of pilots operating fleets very sophisticated UAS. The uses of these aircraft include agriculture, real estate, construction, fire fighting, movie/TV production, marketing, events, LiDar, mapping, inspection, law enforcement, wildlife conservation, news gathering, instruction/training, research and development, security surveillance, oil/gas support, drone light shows, and even the military (I am sure I am forgetting some uses).

We are appointed with all of the best aviation insurance companies out there. We work with AIG Aerospace, Old Republic Aerospace, Allianz, Global Aerospace, QBE, USSIC, USAIG, LAU, and XL. Of the 300+ unmanned risks I Insure, I would say that 240+ are with Global Aerospace.

I will make relevant posts on this thread as often as possible. The purpose of the posts will be to educate the community on many general and specific concepts in the UAS insurance industry.

This first post will focus on very general concepts in UAS insurance. I have provided links below to various content that I have created, or assisted in creating, from around the web. Topics include - liability, hull, payload, non-owned liability, non-owned hull, non-owned payload, personal injury, and ground equipment coverage. I have provided links below covering these topics. I will address more "advanced" topics in UAS insurance in subsequent posts.

If you have any questions, please do not hesitate to ask. I am here to help.

Drone U Podcast Interview

Drone Insurance for Commercial Operations: Demystifying Your Coverage Options - This is a condensed version of the article that appeared in RotorDrone Magazine.

How to Insure a UAV - Washington State Unmanned Aviation Technology Coalition
UAV Coach Content - A Step-by-Step Guide to Liability and Drone Hull Insurance - I contributed only part of this content.

Done Insurance 101 Facebook Group

How to Insure a UAV - Center of Excellence Aerospace and Advanced Manufacturing - This content is very similar to the Washington State Unmanned Aviation Technology Coalition whitepaper above.

Do you think that you have learned enough to request a commercial UAV insurance quote? If so, please follow the link below in order to request a free quote. Most commercial operators can request, receive, bind, and pay for the quote within 10-15 minutes.

Get a Free Commercial UAS Insurance Quote Now!

Thank you very much for reading!

Stay tuned!

Sincerely,

Joe Ernster
[email protected]
 
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Can I get a UAV insurance policy that covers me while I am outside of the USA?

Yes. Before you buy a UAV insurance policy, make sure that you review the "Policy Territory" section with care. Each company has their own covered territory. Some are more broad than others. Be sure to let your broker know that you need to be covered in a specific territory. Also, Mexico and Canada have been known to have some very serious aviation insurance regulations. So, like anything else in life, do as much research on local regulations before flying in unfamiliar regions or countries. We have seen more than one manned aircraft be "nationalized" by the Mexican Government.

Thanks,

Joe Ernster
Bullock Agency, Inc.
[email protected]
Get an Online Commercial UAS Insurance Quote Now!
 
What is an "Open Pilot Warranty"?

UAV insurance policies are written in one of two ways; Named Pilots Only or with an Open Pilot Warranty. A Named Pilots Only Policy is exactly as it sounds, only pilots who are specifically named on your UAV policy can operate the aircraft and be covered. An Open Pilot Warranty allows pilots that meet certain criteria operate your aircraft under the insurance policy. Most of the time with UAV insurance policies, an Open Pilot Warranty would say "The policy shall not apply while a scheduled aircraft is in flight unless the pilot in command is approved by the Named Insured and appropriated licensed for the flight being conducted." Open Pilot Warranties, often called an "OPW," are not offered by all UAV insurance companies. Please read your policy carefully to understand who is actually covered when operating your aircraft. The number one reason a claim would be denied is because an "unauthorized" person was piloting the aircraft.

Thanks,
Joe Ernster
Bullock Agency, Inc.
[email protected]
Get an Online Commercial UAS Insurance Quote Now!
 
A large uas operation will probably benefit by an Open Pilot Warranty type policy. The operation that has multiple pilots would probably pay a higher premium with multiple Named Pilots.

Smaller outfits that have only 1 operator and many different models of uav will probably benefit by a Named Pilot policy that insures the pilot and not the uav so the premium is usually lower if multiple aircraft are used where the Open Pilot policy keeps costing more per uav.

It's nice that there are options.
 
Hello,

My new client just requested a Certificate of Insurance and to be added to my insurance policy as Additional Insured, now what?

This is a common practice in aviation insurance. Simply call or email your broker and ask them to add your new client as Additional Insured. Your broker will need their name, address, and any extra verbiage they may need on their Certificate of Insurance. This usually can be done same day. However, brokers really do appreciate a couple days' notice as they are beholden to the speed of the insurance companies. Also, unless your broker can create their own COIs, this usually cannot be done on weekends. So, as with most things, it is best to plan ahead.

You can also request what is called a "To Whom It May Concern" COI. Think of this as an insurance "card" that you would carry for your automobile. It does not add the client as AI, but it is proof of insurance for anyone who may ask. And it is lighter than carrying your whole policy!

Some brokers will charge you a fee for adding Additional Insureds. If that is the case with your broker, it may be time to find a new one.

Thanks,

Joe Ernster
Bullock Agency, Inc.
[email protected]
Get an Online Commercial UAS Insurance Quote Now!
 
What is "Medical Payments" coverage on my UAV insurance policy?

Some aviation insurance companies offer "Medical Payments" coverage on UAV insurance policies. This coverage is often in the amount of $1,000, $3,000, or $5,000. At Bullock Agency, Inc. we like to call this coverage "go away money." If you were to "slightly" injure someone with you UAV, and they only required a small amount of medical attention, the insurance company would pay out your "Medical Payments" limit to them in order to rectify the situation. If their injuries exceed the "Medical Payments" limit, the payout would then tap into the "Bodily Injury" liability limits of your policy (generally $500K, $1M, $2M, $5M, etc.).

Thanks,

Joe Ernster
Bullock Agency, Inc.
[email protected]
Get an Online Commercial UAS Insurance Quote Now!
 
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What is "Non-Owned Payload" coverage?

Non-Owned Payload coverage is exactly as it sounds. If your UAV ever carries a payload (camera, banner, sensor, etc,) that is not owned by you or your company, it would be a good idea to get Non-Owned Payload coverage added to your policy. When requesting this coverage, please let your broker know if the owner of the Non-Owned Payload carries any insurance on the payload to be carried. Knowing this MAY encourage the underwriter to provide a lower rate for you. Please keep in mind that this coverage is not offered by all insurance companies.

Thanks,

Joe Ernster
Bullock Agency, Inc.
[email protected]
Get an Online Commercial UAS Insurance Quote Now!
 
Is there any coverage for invasion of privacy?

UAVs often get a bad rap from the general public and the media. Many people think that the sole purpose of a flying camera is to spy on them (many people I know). However, we all know that is not the case. What can you do to protect yourself and your business from people claiming that you have invaded their privacy? Well, some UAV insurance companies can add Invasion of Privacy coverage to your UAV insurance policy. Some companies charge extra for this coverage, some offer it for free, and others do not offer it at all. If you are concerned about invasion of privacy allegations, ask your UAV insurance broker (hopefully me) if Invasion of Privacy coverage is available to you.

Thanks,

Joe Ernster
Bullock Agency, Inc.
[email protected]
Get an Online Commercial UAS Insurance Quote Now!
 
Hi Joe,

Are you aware of any actual breach or invasion of privacy claims or lawsuits related to UAS use? That would be interesting reading.
 
@Dave Pitman - None of my clients have been accused of invading someone else's privacy. So, I have not personally be involved in any claims. However, I have heard some anecdotal tales through the grapevine. I will see if I can dig up some solid evidence on that. If I find anything, I will post it here.

California would probably be a good place to search. They have "paparazzi" laws that make it very easy for people to make these sort of allegations.

Thanks,

Joe Ernster
Bullock Agency, Inc.
[email protected]
Get an Online Commercial UAS Insurance Quote Now!
 
Okay, thanks Joe. I know some large clients ask for the included coverage. But I have never seen any actual reason for it as evidenced by cases in the news. It seems like it would be something the media would run with should it happen.

I can certainly see someone using a drone irresponsibly. Does the coverage you write cover someone that is proven to be acting as a paparazzi, for example? Or is it for if someone wrongly accused of invasion during the course of non-nefarious work?
 
@Dave Pitman - MANY of my client's clients have required Personal Injury / Invasion of Privacy coverage. It seems to be a growing trend. I even wrote a policy the other day that required $4M in Personal Injury / Invasion of Privacy coverage.

Since the policies are so broad, I do not believe that the companies that I represent would deny you coverage unless you were doing something grossly illegal/negligent as far as invasion of privacy is concerned. However, I am conservative and would not like to take that chance. I do not think that I would be comfortable insuring someone who I knew was using their UAVs for nefarious purposes. So, I would be very confident in saying that the coverage would apply to someone wrongfully accused of invasion of privacy during the course of non-nefarious work (if all other conditions of the policy were met).

Joe Ernster
Bullock Agency, Inc.
[email protected]
Get an Online Commercial UAS Insurance Quote Now!
 
I could see a high rise condo owner accuse an operator of spying on them when in actuality they are filming another condo or even inspecting the building. It just seems that it would be very difficult for someone to prove an op was invading their privacy when:
A. The op has a legitimate reason to be where they are.
B. You could "spy" on the condo much easier from the building next door and using a spotting scope.

Anyway, it's just another way for lawyers to try and make $$ and contribute to their bad reputation.
 
@Dave Pitman - I 100% agree with you on all points. However, the US is becoming more and more litigious by the day. I would not be surprised if I saw a UAS related invasion of privacy lawsuit very soon.
 
Hello,

Every once in a while, Global Aerospace will release a white paper on the subjects of the UAS industry and UAS insurance. These white papers are often authored by a gentleman that I work with on a daily basis, Chris Proudlove. The latest installment of this series is entitled "White Paper: An Analysis of the Drone Industry's Progress and Focus on Safety." I have attached the paper to this post. There is some great info included in this document.

Enjoy!

Thanks,

Joe Ernster
Bullock Agency, Inc.
[email protected]
Get an Online Commercial UAS Insurance Quote Now!
 

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  • An Analysis of the Drone Industry - Progress and Focus on Safety.pdf
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