How to insure UAS business?
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With new technology comes new risk. Public fear and skepticism towards UAS has been significant right from the start. However, such systems are being further developed, and are helping humans to accomplish numerous dull, dirty and dangerous tasks. But for general public acceptance, it is necessary to achieve adequate safety standards to mitigate new risks.
Insurance companies can play a vital role here. Their expertise in risk management can facilitate adoption of unmanned technology and development of related safety standards. And unlike lawmakers, they were not caught off guard by the emergence of commercial UAS/UAV. Where regulation and safety standards are yet to be developed, insurers can encourage prudent progress by making their own risk assessments and providing policies for responsible operators, the report says. For example, underwriters at Lloyd’s wrote one of the first motor insurance policies in 1904 and the first aviation cover in 1911, long before today’s liability regimes were put in place. Some of the Lloyd’s underwriters, e.g. Kiln Group Limited are already insuring UAS. Risks being insured include hull loss and third party liability.
Insurance is an important part of any enterprise, and companies that are offering UAS services are not exception. Understanding risks and having a proper mitigation, could be the key component that will make the difference between successful and unsuccessful UAS operators.
Lloyd’s has published recently an excellent report on this topic that you can find here.
Do you know other insurers that are offering products for UAS operators?