UAV Insurance Discussion

[Joe Ernster]

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 "Any Operator As Approved By The Named Insured." 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]

 

[Joe Ernster]

What insurance companies write UAV insurance policies?

Some of the companies that write UAV insurance include United States Specialty Insurance Company, Global Aerospace, AIG Aerospace, Starr Aviation, and Meadowbrook. Each of these companies calculate their premiums in a different way, have their own underwriting requirements, and their own policy forms. UAV insurance is not a one size fits all type of deal. Each UAV operator will find a good fit based on the number of UAVsoperated, pilot qualifications, geographical location, operating environment, uses of the UAVs, coverage desired, insurance budget, and claims history. Many aircraft insurance companies are still very "old school." The premiums are not determined instantly by a piece of software. Most of the time an underwriter (an actual person!) will review individual applications and determine the premium, any pilot restrictions, limits of coverage, and deductibles.

Thanks,

Joe Ernster
Bullock Agency, Inc.
[email protected]

 

[Joe Ernster]

What if I am a UAV dealer or manufacturer? How can I protect myself and my business, Joe?

Another great question. You can purchase what is called "Products and Completed Operations coverage. This coverage will protect you and your business in the event of a property damage or bodily injury claim against you that is associated with a UAV that you manufactured, sold, or serviced in the past. This is an invaluable coverage for anyone involved in UAV sales, service, or manufacturing. If you sold a UAV to a production company that subsequently had an large accident, not only would the production company be named in a claim, so would the manufacturer, distributor, repair company, and their mothers. As soon as attorneys get involved, anyone who looked handled the UAV in the past is a potential target.

Thanks,

Joe Ernster
Bullock Agency, Inc.
[email protected]

 

[Joe Ernster]

What is a "Broker of Record" letter?

Like I had mentioned in previous posts, aviation insurance works very differently than most other types of insurance. When shopping for a UAV insurance policy, it is very important to select a broker that you truly trust and stick with them. This is because aviation insurance generally works on a first come, first served basis. So, whichever broker submits your information to the insurance companies first, they get full control of your quotes, policies, and any changes/negotiations that need to happen with those items. The only way to reverse this, and give control of your insurance to the broker of your choice, is to sign a "Broker of Record" letter in the broker of your choice's favor. Some unscrupulous brokers will have you sign the letter prior to getting you any quotes (without telling you what it actually does). By signing this letter, without knowing what it is, you will in essence negate all the work that your current broker has done on your behalf. All quotes that your current broker has procured on your behalf would then be transferred to the new broker. Furthermore, if the new broker is inept, they will no doubt make a complete mess of the aviation insurance market place. This not only creates an nightmare for your current broker, but also for the insurance companies and the UAV business owner as well. Choose your broker wisely!

Thanks,
Joe Ernster
Bullock Agency, Inc.
joe@bullockagency, inc.

 

[Joe Ernster]

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]

 

[hangloose]

What processes and systems do you require from operators? Things like pre-flight and post-flight check list, maintenance logs, etc.

 

[Joe Ernster]

Hangloose,

Nothing like that is required to get quotes or a policy. All you have to do is complete an application and I can get you quotes. However, the do ask if you have a standard operating procedure on the application. Getting a quote or policy is not contingent upon those items though.

Thanks,

Joe Ernster
Bullock Agency, Inc.
[email protected]

 

[Joe Ernster]

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]

 

[Joe Ernster]

What happens at renewal time?

Aviation insurance policies do not automatically renew. Your broker should contact you prior to your renewal and make sure nothing has changed with your risk or desired coverage. The broker, if they are good, will then submit your information to all of the UAV insurance companies out there. If you know that you want to change your coverage prior to your renewal, please let your broker know as soon as possible. Also, since aviation insurance works on a first come, first served basis, please try not to contact other brokers for quotes. They will end up blocking your current broker from obtaining the proper quotes which will cause a huge headache for you and your current broker. If you feel that your broker is not getting you the proper coverage or the best rates, simply let them know. Being fully transparent with your aviation insurance broker makes everything go more smoothly for everyone involved. If you have more than one broker getting quotes for you, it creates a "too many cooks in the kitchen" situation.

Thanks,
Joe Ernster
Bullock Agency, Inc.
[email protected]

 

[Joe Ernster]

Hello,

Please see link below to a podcast interview that i did for agflyers.com

If you have any follow up questions, please let me know.

On the Podcast: Commercial Drone Insurance 101 - agflyers.com

Thanks,

Joe Ernster
Bullock Agency, Inc.
[email protected]

 

[pilotslog]

Husker,

A single UAV, with $500k in coverage, starts at $595 per year.

Joe Ernster

seems high.... My Cessna is only $500 a year and that's with $100 deducible and 1,000,000 liability $35,000 hull and 250K per person injury....

 

[Joe Ernster]

Pilotslog,

That is a very common response. My agency insures 720 clients and a majority of them are manned aircraft owners. Many of them do pay less than $595 for their policies. However, these aviation insurance companies know exactly the risk they are taking when insuring a 55 year old pilot, in a 1976 Cessna 172, in Florida, with an instrument rating (just an example). Since the UAV industry is so new, they do not know how risky it is to insure. If they write a ton of policies with few losses, the premiums will decrease. If they write few policies and have many losses, premiums will increase. At this time, the data just is not there to say what is a "fair" premium. The industry is just too new.

Thanks,

Joe Ernster
[email protected]

 

[Joe Ernster]

Are you planning on shooting events as part of your business? If so, that might limit your options when it comes to UAV insurance. Some companies, not all, specifically exclude events. Furthermore, some companies will not even provide a quote for you.

Joe Ernster
[email protected]

 

[Joe Ernster]

One of the aviation insurance companies that I work with, Global Aerospace, just released a UAV related "White Paper" today. Check it out!

Joe Ernster
[email protected]

 

[Joe Ernster]

What is TRIA coverage?

Please follow the link below to read a great description on TRIA coverage.

Does My Business Need Terrorism Insurance?

Thanks,
Joe Ernster
[email protected]

 

[mediccj]

Which insurance agency was offering damage/replacement for drones? State Farm? Wasn't it like $60 a year? Not looking for liability (already covered there, and don't do commercial work). Just looking for some extra peace of mind if she decides to take off on me or somehow crashes.

 

[Joe Ernster]

Mediccj,

This thread is geared towards commercial operators. The companies I work with only offer coverage for commercial risks. I do not know anything about the hobbyist side of the insurance.

Thanks,

Joe Ernster
[email protected]

 

[Joe Ernster]

Hello,

Please see below link to Global Aerospace's annual publication, "Jetstream." There are a couple pages regarding the UAV industry. I just thought that you all may be interested.

http://www.global-aero.com/jetstream-2016/#1

Thanks,

Joe Ernster
Bullock Agency, Inc.
[email protected]

 

[Joe Ernster]

Hello!

Global Aerospace has just released a new White Paper. This one is concerning Contracting With and Between UAS Operators. Have a look!

Sincerely,

Joe Ernster
[email protected]

 

[Joe Ernster]

Does my UAV insurance policy cover me for indoor flights?

Usually, the answer is "no." However, some UAV insurance policy do not specifically exclude indoor flights. It is always a good idea to check with your broker before taking an indoor job. Your broker may need to run it by the insurance underwriter. Some companies will approve indoor operations on a case by case basis.

Sincerely,

Joe Ernster
[email protected]