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The Great Insurance Information Thread of 2018!

AviationBroker said:
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!
Click to expand...

Thanks Joe!
 
Not sure if this is the best thread for my statement, but I wanted to make folks aware of something that took me a little bit by surprise.

In going over my Verifly policy I noted under the section "Exclusions" that you are not covered if the property in question is owned, occupied, rented or used by (you) or in the care, custody, or control of (you).

So, if you are photographing your own property, you don't have liability insurance for any damage you may have experienced to your property. Same thing if you say, rent a beach house with the intent of doing some beach photography — stay away from your rental. The houses surrounding the property under your control are, however, covered.
 
commercialTRK said:
Not sure if this is the best thread for my statement, but I wanted to make folks aware of something that took me a little bit by surprise.

In going over my Verifly policy I noted under the section "Exclusions" that you are not covered if the property in question is owned, occupied, rented or used by (you) or in the care, custody, or control of (you).

So, if you are photographing your own property, you don't have liability insurance for any damage you may have experienced to your property. Same thing if you say, rent a beach house with the intent of doing some beach photography — stay away from your rental. The houses surrounding the property under your control are, however, covered.
Click to expand...

That kind of makes sense. They don't want you to get a free remodel for a $10 insurance premium. Easy thing to do is to not cause any damage. Or, if you're really concerned that the flight is risky, hire another 107 pilot. You know, similar to what you have to do if you're a dentist or general surgeon! :)
 
What is a "To Whom It May Concern" COI?

A TWIMC COI is a "general" Certificate of Insurance that is provided by aviation insurance companies. Instead of specifically listing one of your customers on the COI ( like when you add a customer as additional insured), it is a COI that is addressed to "To Whom It May Concern." This way, you can present it to a customer who wants to see proof of insurance but does not need to be added as Additional Insured. Think of it like an auto insurance ID card. If you want a TWIMC COI, your aviation insurance broker will be able to get that for you.

Thanks,

Joe Ernster
Bullock Agency, Inc.
[email protected]
Get an Online Commercial UAS Insurance Quote Now!
 
My UAV insurance premium is more expensive than I thought! Do I have to pay the whole premium upfront?

While aviation insurance premiums are generally paid in one lump sum upfront, some aviation insurance brokers can offer you a financing plan. These financing agreements allow you to put 20% - 25% down and break the rest of the premium up into installments. However, please beware that this option will cost you a little bit extra on top of the quoted annual premium. If you do not want to pay your premium all at once, ask your broker about premium financing options.

Thanks,

Joe Ernster
Bullock Agency, Inc.
[email protected]
Get an Online Commercial UAS Insurance Quote Now!
 
One of my clients called me today and informed me that one of his UAVs hit a woman in the head and she had to go to the hospital to get stitches. The injuries were not that severe and he didn't want to make a claim. However, he did want to make sure that I was aware. I reviewed his policy and confirmed that there is a clause in the policy stating that the insured MUST inform the insurance company of any incident/occurrence that could reasonably lead to a claim in the future. So, we went ahead and reported the incident to the insurance company.

I think that this is a very good lesson to all commercial operators here. If you are involved in an incident/accident/occurrence that could possibly result in a claim in the future, PLEASE report it to your aviation insurance company. This is especially true if there are any injuries at all. If you do not follow this suggestion, and the injured party files suit against you in the future, the insurance company could possibly deny you coverage.

The last thing that this burgeoning industry needs is uncovered bodily injury claims.

Thanks,

Joe Ernster
Bullock Agency, Inc.
[email protected]
Get an Online Commercial UAS Insurance Quote Now!
 
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AviationBroker said:
One of my clients called me today and informed me that one of his UAVs hit a woman in the head and she had to go to the hospital to get stitches. The injuries were not that severe and he didn't want to make a claim. However, he did want to make sure that I was aware. I reviewed his policy and confirmed that there is a clause in the policy stating that the insured MUST inform the insurance company of any incident/occurrence that could reasonably lead to a claim in the future. So, we went ahead and reported the incident to the insurance company.

I think that this is a very good lesson to all commercial operators here. If you are involved in an incident/accident/occurrence that could possibly result in a claim in the future, PLEASE report it to your aviation insurance company. This is especially true if there are any injuries at all. If you do not follow this suggestion, and the injured party files suit against you in the future, the insurance company could possibly deny you coverage.

The last thing that this burgeoning industry needs is uncovered bodily injury claims.

Thanks,

Joe Ernster
Bullock Agency, Inc.
[email protected]
Get an Online Commercial UAS Insurance Quote Now!
Click to expand...
Thank You Joe that is very good advice to know thanks for sharing
 
He may want to report it to the FAA as well. "Serious" is a very subjective term in the regs and it is there by design.

§107.9 Accident reporting.
No later than 10 calendar days after an operation that meets the criteria of either paragraph (a) or (b) of this section, a remote pilot in command must report to the FAA, in a manner acceptable to the Administrator, any operation of the small unmanned aircraft involving at least:

(a) Serious injury to any person or any loss of consciousness; or

(b) Damage to any property, other than the small unmanned aircraft, unless one of the following conditions is satisfied:
 
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Dave Pitman said:
He may want to report it to the FAA as well. "Serious" is a very subjective term in the regs and it is there by design.

§107.9 Accident reporting.
No later than 10 calendar days after an operation that meets the criteria of either paragraph (a) or (b) of this section, a remote pilot in command must report to the FAA, in a manner acceptable to the Administrator, any operation of the small unmanned aircraft involving at least:

(a) Serious injury to any person or any loss of consciousness; or

(b) Damage to any property, other than the small unmanned aircraft, unless one of the following conditions is satisfied:
Click to expand...

It would be most irresponsible for this "pilot" not to comply with 107.9. If someone has to make a trip to the ER and get stitches that meets anyone's definition of serious. Attempting to dodge the FAA because s/he knows his operation is going to get a looksee from the feds is foolish. Better to report and get it over with.
 
Hi Joe, I don't mean to put you on the spot, actually I do :) Can you respond to this thread from the Inspire forum regarding using different firmwares and 3rd party software to eliminate some nuisance warnings created by DJI as well as other things. No Limit Dronesz I would also like to know your thoughts about 3rd party apps and adding aftermarket kits for lighting and safety items such as parachutes. Does the insurance company have guidelines to help us make educated decisions on how we alter our UAV's?

How will any modifications done to our drones affect our insurance, some say anything done different from what the mfg has given us will void our insurance. What are the facts please.
 
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I will be interested in Joe's response too. However I would be extreamly surprised if the underwriters have any restrictions with modifications to the aircraft at this point. If any of the hardware or software was certified by the FAA or needed to pass some standard then maybe.

As it is now, DJI's software is often buggy from version to version. Are they going to be the one to decide what is acceptable? Regarding disabling DJI-fencing, that would be considered a positive. In manned aviation, it is a violation for anything that interferes with a pilot's control of the aircraft. DJI's geo-fencing can not only prohibit take off when the operator has full rights to do so. It can also begin an auto-land on it's own and the operator does not have full control of if the craft finds itself in a DJI perceived NFZ. Not good at all and probably is a violation of the FARs.

In the end, I'm of the opinion if a modification is not a violation of the FARs, then the insurance underwriters are probably not interested. Are auto insurers concerned if someone has the computer in their truck tuned to better pull a trailer?

Okay Joe. Your turn. :)
 
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I'm glad I didn't know this yet LOL but the FAA has changed how Part 107 operations report an accident. Now we go into the DroneZone portal, click on Part 107 Dashboard, scroll down to the section "Report Part 107 Accidents" and click on "Submit Part 107 Accident Report".

IMPORTANT
  • The remote pilot in command must report any sUAS accident to the FAA no later than 10 days after a Part 107 operation that meet the following criteria:

  • Serious injury to any person or any loss of consciousness; or

  • Damage to any property, other than the small unmanned aircraft, unless one of the following conditions is satisfied: A) The cost of repair (including materials and labor) does not exceed $500; or B) The fair market value of the property does not exceed $500 in the event of total loss.

  • Accident Reporting under Part 107 OMB Control No. 2120-0767. Expiration Date 07/31/2020.
 
@Florida Drone Supply @Dave Pitman - I enjoy being put on the spot, usually, it helps keep me sharp. :)

At this point, the insurance companies have not taken a stance on 3rd party software or modifications. As Mr. Pitman wisely pointed out, if you are not violating FARs, it is really of no interest to the insurance companies. Furthermore, even if FARs are violated, and there is an incident, the claim may still be covered. Aviation insurance companies do not have an endless pool of people to draw from like homeowners/renters and car insurance. Aviation is a very small community. If word gets out among pilots, both manned and unmanned, that an insurance company is not paying claims, they will lose a lot of business. I have personally seen several claims that could have been easily denied but were paid. Due to this, I am able to sleep at night. If I sold policies from companies that tried to screw my customers at every turn (auto, home, life, health, etc.), I would have to find a new career. I am just that type of person. However, I am not advocating breaking the rules. Follow the rules and read your policy! But I digress...

As the commercial UAS insurance market matures, I anticipate that the insurance companies will begin to consider aftermarket software and safety products. If the insurance companies have an inordinate amount of claims related to a specific make and model of UAS, or some type of software/equipment, they may not insure it (or charge a large premium). They may also give a discount for operators who install parachutes, ADS-B, safety software, etc. Some Cirrus manned aircraft can be equipped with a parachute system. Some insurance companies will give a pilot a discount on the hull portion of his aircraft insurance premium if this item is equipped and functioning. I do not see why this logic will not apply to UAS in the future.

TL;DR - Read your policy, follow the rules. As commercial UAS insurance and UAS technology matures, there will be discounts and exclusions in insurance policies related to software and modifications.

Keep up the great discussion!

Thanks,

Joe Ernster
Bullock Agency, Inc.
[email protected]
Get an Online Commercial UAS Insurance Quote Now!
 
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BigAl07 said:
I'm glad I didn't know this yet LOL but the FAA has changed how Part 107 operations report an accident. Now we go into the DroneZone portal, click on Part 107 Dashboard, scroll down to the section "Report Part 107 Accidents" and click on "Submit Part 107 Accident Report".

IMPORTANT
  • The remote pilot in command must report any sUAS accident to the FAA no later than 10 days after a Part 107 operation that meet the following criteria:

  • Serious injury to any person or any loss of consciousness; or

  • Damage to any property, other than the small unmanned aircraft, unless one of the following conditions is satisfied: A) The cost of repair (including materials and labor) does not exceed $500; or B) The fair market value of the property does not exceed $500 in the event of total loss.

  • Accident Reporting under Part 107 OMB Control No. 2120-0767. Expiration Date 07/31/2020.
Click to expand...

I know you already know this but the big number is 24 hours for accident reporting to the NTSB if you meet their requirements which I will expand upon after I stuff my face...
 
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