Unmanned Aircraft Systems ("UAS") – Aka Drones Insurance Issues: Where Are We Headed?

Aviation

I. Introduction

Although the use of Unmanned Aerial Vehicles ("UAVs") is not new, as commercial usage explodes over the next several years, unique insurance issues will arise. How will underwriters handle this topic when risks are largely unknown? What insurance will be required for each type of entity involved with UAS operations? Will contractual indemnification clauses need to be changed in conjunction with insurance policies? One thing is clear: increased UAS operations will mean increased liability issues. Causes of action based upon tort, contract, and intellectual property laws, as well as constitutional issues (First Amendment; Fifth Amendment "taking" of property without just compensation; Fourth Amendment warrantless "searches") will arise.