Updates on Drones | Wolters Kluwer
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  • Updates on Drones

    Sylvie Lumumba

    Sylvie Lumumba, Insurance Compliance Analyst

    Published July 25, 2016

    In the previous article, The Sky is Buzzing: Drones and Insurance, it was mentioned that “The Insurance Service Organization (ISO) has developed various first-party and third-party coverage endorsements that insurers can adopt, including a popular personal homeowner’s policy endorsement covering recreational use of drones. We would like to correct that statement. ISO made a countrywide filing (CL—2014-ODNFR) and received approval in over 30 states for various Commercial General Liability and Umbrella endorsements providing drone coverage.  In addition, ISO has also developed Inland Marine non-filed classes endorsements for property related exposures. To date, ISO is working on personal lines policy endorsements to cover recreational use of drones.

    In addition, the Federal Aviation Administration (FAA) has issued a new rule for small unmanned aircrafts systems (UAS) to be effective 08/29/2016, which will allow the operation of small UAS in the National Airspace System for non-recreational and non-hobby or commercial purposes. Important to note, there is no mandatory liability insurance requirement imposed with this new rule; both the FAA and the Office of the Secretary of Transportation (OST) lack authority to do so.  It is the responsibility of the individual pilots who offer such services to secure insurance coverage as they could be held liable for any injury or damage that could result.

    Editor’s Recommendation: Stay up to date with regulatory guidance on UAS coverage with OneSumX NILS INsource.


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