Drones and Insurance: Am I Covered?
As the use of Drones and Remotely Piloted Aircraft (RPAs) continues to grow rapidly, not just recreationally but for a widening range of commercial purposes, the risks and exposures for these operations are sometimes underestimated. Industries such as mining, construction, agriculture, and photography continue to find ways to incorporate this technology into their product and service offering, and it's important for operators to understand the potential risks involved in their operation.
In this article, we'll outline some key considerations for operating drones or RPAs in Australia, including the risks involved, insurance coverage, and requirements by the Civil Aviation Safety Authority (CASA).
Risk Considerations
The use of drones or RPAs can pose several risks, including personal injury, property damage, and privacy breaches. As an operator, it's important to identify and assess these risks to determine the appropriate insurance coverage required. For instance, if the drone is used in a commercial operation, the operator must ensure that the insurance covers third-party liability, damage to property, and injury to people caused by the drone.
Insurance Coverage
The insurance cover required for drones or RPAs will depend on the type of operation and the level of risk involved. The most common types of insurance coverage for drones include:
Public liability insurance: This covers liability to third parties for bodily injury or property damage caused by the drone. This is typically required for commercial drone operations. Note that most business package policies exclude risks involving the use of drones. Check your policy coverage and exclusions carefully or check with your broker to make sure of this important point.
Hull Insurance: This covers damage to the drone itself due to accidents, malfunctions, or theft.
Payload Insurance: This covers damage to the payload (camera, sensors, etc.) attached to the drone.
Cyber Insurance: This covers data breaches or privacy violations resulting from the use of the drone.
CASA Requirements and Licensing
In Australia, the operation of drones or RPAs is regulated by CASA. All operators must comply with the regulations set out by CASA, including obtaining the necessary licenses and permits. Depending on the type of operation, operators may require a remote pilot license or a remote operator's certificate.
To obtain a remote pilot license, operators must complete a training course and pass a written exam. This license is required for any commercial operations or operations that involve drones weighing more than 2kg. Operators must also register their drone with CASA and comply with the operating rules and regulations.
For commercial operations, operators must also obtain an Operator's Certificate (ReOC) from CASA. This certificate authorises the operator to conduct commercial drone operations and must be renewed every 3 years.
Conclusion
The use of drones or RPAs can pose several risks, and it's important for operators to understand the insurance coverage required for their operations. Operators must also comply with the regulations set out by CASA and obtain the necessary licences and permits. By doing so, they can minimise their risks and ensure that they are covered in the event of any accidents or incidents.
As an insurance broker, we can assist you in identifying the risks involved in your drone operation and provide you with the appropriate insurance coverage to protect you and your business. Feel free to contact us for more information or to discuss your insurance needs.
General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.
