Unmanned aircraft vehicles (UAV), aka drones, have become a popular business feature over the past few years. It’s not uncommon to see a drone as equipment in businesses such as photography, construction, and more. As the popularity and opportunities rise, so does the question of drone insurance- how do you know if you need drone insurance? If you have a drone that is a part of your business plan, we recommend reaching out to your local Rural Mutual Insurance agent to understand what risks you might face and the coverage options associated to those.
Do I Need Drone Insurance?
If you’re debating whether or not you should get drone insurance, the first question you can ask yourself is: how do you use your drone in your business?
- Do you bring the drone to every job site or photoshoot?
- Is the drone (or multiple drones) part of your daily operations?
- If the drone was damaged, destroyed or caused damage to others, would it cost your business money?
If any of the above applies to your business practices, your company could face a large loss if your drone is damaged or destroyed without coverage.
How Do I buy Drone Insurance?
On your business insurance policy, drone insurance can be scheduled or added on a blanket basis. Scheduling allows you to add additional coverage for a specific item. With blanket insurance, a single coverage limit applies to anything that falls under that “blanket” of coverage.
For example, if you have two drones, one new and one older, you could schedule one and just carry liability only on the other. If you want physical damage coverage on both, you have the option to schedule them individually, or put them both under one blanket limit.
In addition, know that a deductible will apply to a drone claim.
While drone coverage might be applicable to your situation, most drone insurance options have the following coverage possibilities:
- Physical Damage Coverage: If your drone is destroyed or damaged beyond repair due to a covered cause of loss, you may receive coverage to repair or replace the covered property.
- Liability: Coverage is offered in a wide variety of ways. Your local Rural Mutual Insurance agent can assist in identifying exposures for your business, and determine which coverages are appropriate. Liability coverage for drones can be complex from an insurance standpoint, and it is important to utilize expert advice to make sure you are properly protected.
There may be special exclusions where coverage would not apply, such as damage in extreme temperatures or damage while loaned to someone else. Always check with your insurance agent to know your coverages.
Information to Provide to Your Agent
If you are ready to pursue insurance on a drone through Rural Mutual, congratulations! Here are a few things you should have ready when you sit down with your agent:
- Description of operation – What are you using the drone for? How often are you using it? Providing as many details as possible will help ensure that you get the coverage you need.
- Description of property – Serial number and model number
- Determine your limit when scheduling your drone – Again, to make sure you have the proper coverage
Accidents happen. Make sure you have proper coverage for your drone. Talk to a local agent to get a drone insurance quote.