Drone Insurance – Are You Covered?

As drone technology continues to rapidly evolve it has unleashed numerous commercial growth opportunities for businesses; however, along with those opportunities come a myriad of complex liability and coverage issues related to insuring the use of commercial drones ranging from privacy to personal injury.

For commercial drones and ancillary business activities, the following general types of insurance coverage should be considered: (1) liability, (2) personal injury, (3) privacy torts, (4) property, and (5) workers' compensation.

Any company flying drones as part of its business model faces a wide range of risks which can cause serious damage or injury to persons and property, as well as damage to the drone itself. Insurance policies are essentially contracts and typically contain a specific exclusion for claims related to the use of "aircraft." Whether a drone constitutes an aircraft in this context is an unsettled issue and that uncertainty echoes throughout the