Insuring Your Construction Project's Eye In The Sky: Understanding Drone Insurance Coverage

Drones – also known as unmanned aerial vehicles or UAVs – are used in the construction industry in several ways. Drones are used to perform tasks that are risky for people to perform themselves. With the industry's push toward automation, drones play an important role in monitoring the worksite – from tracking and reporting progress to equipment and material inventory.

So your company has decided to use a drone on a construction site. The company either purchases its own drone and operates it, or finds a subcontractor to do the same. The company is aware of the risks¹, but is it confident that it is adequately insured to cover those risks?

A standard commercial general liability (CGL) insurance policy may not provide adequate protection if drone use goes awry. Standard CGL policies contain an aircraft exception that excludes coverage for bodily injury or property damage that arises out of the ownership, maintenance, use, or entrustment to others of any aircraft