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Safety-first is essential with the anticipated increase in drone activity

New risks emerge for underwriters to assess in connection with increase in use of drones.

Sales of drones for private use have increased substantially in the last few years but now commercial drone activity is growing at an alarming rate. Current uses of drones include disaster relief, inspecting and exploring inaccessible places, precision agriculture, claims handling and logistics.

To improve air traffic at a low altitude, authorities and drone manufactures need to respond to changes due to the rapid development of technology and its capabilities.

Insurers have taken a proactive approach to fill the gaps in knowledge and to offer a comprehensive cover for all stakeholders. Since drone-related accidents involving bodily injury and/or property could provoke legal action, drones for both private and commercial use should have legal liability insurance to cover third-party damage.

With no uniform regulation currently existing for drones, insurance has to be tailored around diverse national regulations, in addition to being flexible enough to adapt to the frequent changes made.

We will continue to monitor the use of drones and their development, along with how drone insurance is affected next year. If you have any concerns, make sure to speak to your broker or company agent.

Source: http://www.canadianunderwriter.ca/commercial-lines/drone-activity-sky-anticipated-safety-first-approach-essential-scor-newsletter-1004114944/