Insurance Considerations for Drone Pilots Featuring Global Aerospace and Verifly
Hi everyone. Thank you so much for joining us today for our webinar called insurance considerations for drone pilots, and today we’re featuring a few special guests. We have Chris proud love from global aerospace and he is the SVP of underwriting and an executive at global aerospace and also Jay Bregman, who’s, the CEO and founder of their fly.
My name is abby Spiker and i’m. The CEO and founder of dart drones. We are really excited today to give you an education on what you need to know about drone insurance and how both of these two gentlemen are out there, trying to make it easier for you to make sure that you’re covered with your drone.
The drone industry is taking off literally with the expected economic impact of the integration of drones with more than 82 billion dollars and is supposed to create over a hundred thousand jobs by 2025.
We’re, really excited about what’s happening in drones, but there’s, a lot of questions out there and it’s hard to find answers. So we’re, hoping that our webinar series will be able to give you some more clear answers on your biggest questions about becoming a drone pilot, and one of the biggest ones is risk and risk comes down a lot to drone insurance.
There’s, a lot of factors that can lead to a crash with your drone, whether it be unpredictable weather, inexperienced, drone pilots near you, interference from a radio tower, or even your drone malfunctioning.
There’s, a lot that you need to know about how to cover yourself and make sure that if your drone does crash – and God forbid, hit somebody, how are you covered and what’s going to be the next step for you, As a drone pilot, I’d, like to introduce you to Chris, proud love of global aerospace, who’s, going to talk to us now about how global aerospace is providing solutions for drone pilots and exactly what you need to know about.
Drone insurance Chris, I’ll, pass it off to you. Thank you very much, hi Abby thanks very much indeed. I hope everyone can hear me clearly. It’s, a great pleasure to join you today for this webinar. I work for a company called global aerospace.
We are one of the leading providers of aviation insurance around the world. Today we are headquartered in London, where offices in the US, Canada and various countries in Europe as well – and we have a lot of experience with ensuring aviation and aviators.
We’ve, been ensuring product liability, airliners, general aviation aircraft, really all manner of the aviation industry for coming up on 100 years now, and we’ve been a big player in the drone business in the commercial space for about five years And also really, since the you know the very birth of the commercial drone industry in the US, we have been providing products and services through drone drone operators.
Before I get into the coverage, I think it’s worth just sort of just going back. I don’t think you need to go back to the slide Abbey, but just in terms of claims, you know to put this whole insurance piece into perspective.
At this point in time we have paid over 350 individual claims for accidents and damage to drones, payloads ground ground equipment. We’ve had a few third-party liability claims. I’m happy to say not too many, but those claims do happen.
As well, so when you think about your options for buying insurance, I can tell you you know from first first hand that we have had lots and lots of clients who have found great value in having a professional insurance policy.
Really. What underpins the vast majority of those claims is in some shape or form user error. There may be some cysts. You know there’s, a mouth malfunction from the system as part of that or you know other factors at play, but in some shape or form user error is generally a part of every single accident and we partnered with dart drones.
At the end of last year to help bring our customers the very best trading that is out there, and I think most of the people on the call today have have been through dart drones training, and you certainly appreciate you know what I’m.
What I’m talking about you know that hands-on training really does help provide operators with a much higher level of proficiency. So, as you’re, going out during four jobs talking to potential customers, you know don’t forget to play up the fact that you have dart drones, training and that you have achieved what I think is a higher level of professionalism And safety than the vast vast majority of your of your peers in the commercial industry today, okay, so just a high-level.
What are we talking about as far as insurance is concerned? Am I covered? If I crash am I covered if my drone is stolen? If I get caught in a rainstorm, the answers of those first three questions is a resounding yes coverage.
Is there so long as you select the option of purchasing physical damage coverage that is basically damage sustained to equipment that you own? So as long as you’re insuring that equipment, all those items are covered, it’s, a it’s, an all risk policy that we provided it’s, a broad policy form.
It contains relatively few exclusions. Some things that you might ordinarily find in other insurance policies are not present in aviation policies. They’re rather different to other types of insurance.
The coverage is worldwide. So, as far as we are concerned in the u.s., you would need to be a u.s. resident. You would need to have a permanent address in the US, but the coverage is well worldwide. So if your business takes you to any part of the curve of the globe you you would be covered under that policy and the coverage term it really they’re.
There, two options: two distinct options through global aerospace or other insurance carriers. Like us, you would purchase an annual policy of insurance which covers your equipment and liability for a full policy year or the other option which J Bregman is going to discuss in more detail during his part of the presentation is an on-demand type of insurance.
Where you only purchasing the insurance for a specific period of time, I’m, going to be focusing on the annual staff. Jay will pick up the on-demand piece of it later. As far as the deductible is concerned for physical damage claims visit.
These are the equipment damage. Typically, it’s. The first five percent of the value of any equipment would be would be held by the insured and not by the insurance company. You may have seen that there are warranty programs or some manufacturers market, some type of insurance policies.
When you buy your drone, you get the opportunity to to buy that type of policy, and you know it’s similar to buying a new washing machine and you get the option for a extended warranty, extended part warranty or something it’S that type of that type of opportunity that you have sometimes from manufacturers and distributors when you, when you buy a new drone, but the coverage that they provide is distinctly different to an insurance policy.
We we cover as part of insurance policy. We cover all forms of accidental damage, so any any for any call for any reason. The drone crashes or you lose your drone or stolen. Then that is that is covered as long as it is an accident.
Essentially, the warranty policies do have an element of benefit over what we provide, because there is that element of warranty. If simply the you know, the drone fails fails to work not as a result of a crash or any other kind of incident, but it just you know.
The drone doesn’t turn on one one one morning, then you probably have a warranty claim, but I would certainly caution against assuming that that policy covers you for all types of accidental damage. Some of them claim to but be very careful to read the fine fine print, because I’ve, seen some of those deals that exclude damage you pilot error, for example, and going back to my earlier comment about the fact that in some shape or Form there’s.
There’s generally, an element of user error in every accident that we have seen that could significantly reduce your your ability to make a claim under that policy. So I would just be: I’d, be cautious around those types of warranty programs and, as I say, just check, check the fine print to make sure that you know exactly what you are purchasing.
Why buy insurance I mean, I think there are a lot of very good reasons why you should, if I could perhaps look at the the second, the second bullet point here: first, which is the potential risk to damage and property.
I mean that is the that’s, the that’s. The main reason why you are buying insurance. You have all invested money in your businesses, whether it’s. Purchasing the drone setting up a website taking your dark drone training, you know what what whatever it is.
You have you have invested time and money in your business and if you were to suffer and unfortunate accidents where the drone, I guess, in the best case, cause property damage on the worst case. If it actually hits someone and cause physical injury, then you can be very certain of the fact that the plaintiff lawyers who are circling the industry waiting waiting for accidents to happen will will pounce and you ‘
Ll find that the aviation business in general is a is one where you know. No one’s, afraid to file lawsuits, and you will find that your record of you know your entire flying record and the fact that on one occasion you you might have broken through four four four hundred feet.
All of a sudden you’ll, be painted as a reckless pilot and really the sky’s, the limit in in terms of what you might be sued for so that’s, the that’s. The primary reason why you buy insurance: not only do you get the coverage and the physical either and the financial payout that the insurance company mates on your on your behalf, but we also provide defense.
We will. We will pay for the cost of defending you against that type of claim scenario, so you no longer the short of it that’s. The main reason why you buy that coverage is provided both on annual policies and on short-term on on demand policies.
So that is really the key value to this product. There are some commercial general liability policies that have some elements of limited right back coverage for unmanned aircraft. So if you are a business owner, you have a commercial general liability policy.
In the first instance, it has the aircraft exclusion in it, but you may have found that your insurance carrier is one of the few that is providing this limited right back endorsement again, just be sure that any of the exclusions in the policy don’T negate that coverage so things like illegal acts or you know many others.
You might find that a lot of the coverage that you’re, anticipating you’re buying isn’t actually there because of the other exclusions. In that, in that policy, drone pilots operating without insurance could be liable, property damage.
Yeah I mean that’s. Really the you know the key to it. It’s, a question of your financial risk and finally, on this list and don’t underestimate this. The we’ve, seen more and more the value of insurance go up because, as the drone industry matures and companies are more used to hiring drone service providers, they are expecting more.
They’re, expecting their drone operators to turn up. You know CLE entirely presentable, but they’re, also asking for insurance policies. They want to see evidence of insurance very often with specific language in in the insurance policy, to make sure that the that the you know the darrone interests are fully fully protected.
I think it really also helps if you’re bidding on a project or bidding bidding for work and as part of your proposal, you say you know, I’m fully insured. I carry a million dollars or I carry five million dollars of insurance.
I think that that sets the bar higher. I think that that adds a lot of value to your proposition. So don’t, don’t, be afraid to talk about insurance, and you know, as it becomes a you know, a more accepted part of any any type of drone contract.
You will you’ll? Have it you’ll know you’re talking about, and I think that ‘ Ll put you in a good good position. You don’t necessarily have to have an annual policy of insurance. I think just being a member of the Vera flight Network, you know if you can demonstrate that you have purchased a lot of Vera fly policies in the past.
You may not have a valid policy with them, but you can pre-book. You can show them how it works. All of that really helps to to add additional value to your proposition so types of insurance. Generally speaking, we are looking at two distinct areas of insurance.
The first, which we’ve, talked about already, is hull insurance and that’s really jargon for first party damage to property that you own. So your drone, your payload, all that type of equipment that can be covered, is damage damage to to that.
So you know we’ve, found more and more often that the value of you know lidar systems. The value of cameras is exceeding the value of the drone drone itself, so you might find that, while, while you don’t wish to ensure your $ 1500 phantom, you know all of a sudden you’re, renting a five thousand dollar Camera or even a fifty thousand dollar lidar camera and you and you need to buy insurance for that.
So that’s, that’s, that’s all covered! You can find ways through our online system through our policy form, to ensure that non owned coverage, which is basically damage to property that you use for a period of 30 days or less, but that you do not own and that coverage can be provided on.
A blanket basis in your policy so that you don’t have to refer to your broker every single time you go and rent a rent, a camera. That coverage is there, it’s there for the duration of the policy and it and it protects you in the event that you, you know, you know you hire equipment or borrow or equipment, and then the liability side of things again.
You know we’ve, we’ve touched on this. This is the this. Is the risk of you cut. You know causing property damage or or bodily injury arising out of the operation of the drone, but there are many additional coverage items to be found under the liability section in your policy, and these include things like invasion of privacy.
So if you publish an image on, you know on the internet – or there was a case in Australia where a real estate broker but a picture of a prophecy that they were selling on a bill billboard and there happens to be somebody sunbathing in the garden.
Next. Next next door – and that was on the Billboard as well, you can – you can insure against that. Typically, that is included in our policy. At least it’s. It’s, it’s, it’s actually part part of the policy, and there’s, no premium charge for it.
That’s also the case with verify as well premises. Liability is included, which is essentially if, if I can give you an example, if you are doing a shoot – and you have your drone case on the ground and somebody trips over the drone case and hurts their head or breaks an arm or something you would be Covered under that, under the premises, liability policy there’s: medical expenses, there’s; product liability arising out of aircraft that you have sold there’s; a whole range of additional coverage items that fall under that liability.
Section of the policy it generally does account for the the higher part of the premium of the policy, depending on the value of your equipment or, depending on the limit of liability that you’re purchasing.
Typically, the liability is the is that is the higher premium number, and I can talk about premiums in a second and a couple of couple of slides time. So how does it work? What I want to try to do here is to break the insurance business down and make it simple and easy to understand, because I know at times insurance can seem, like you know, tough business to try to navigate and certainly in the drone space right right now.
There is competition, you know there are a lot of companies that are selling a lot of different products, whether it’s. Your warranty coverage from the manufacturer – or you know, right – backs to commercial general liability policies.
I mean there are a lot of people that are trying to sell drone insurance in a number of different different ways. We recommend working with an aviation specialist. You guys are all in the aviation business like it or not.
You’re, a VA ters. You’ve, passed your remote pile of them and certificates. You’ll. The operations you’re flying are regulated by the FAA. What you really need is a specialist aviation insurance policy to access global aerospace or another company.
Like us, the first thing you have to do is to contact a broker brokers act as intermediary between the insured you and and the insurer. They will provide advice to you on the type of limit of liability.
You should buy Dell Dell answer your questions about coverage. They will be your first point of contact for questions that you have and they’ll help you navigate the process. We try to make the process as easy as possible.
We build an online quote portal, which is now used by about 30 or 40 brokers around the country, and it is it’s, basically a really easy way for or drone operators to to buy insurance. So if a quick web search for global aerospace portal, you’ll, probably come up with with very important.
You’ll, probably come up with a few options, or you can contact me, and I’d, be very happy to make a recommendation for a broker in your area. Who would be able to help you buy by the insurance. But once you’ve, once you’re in the portal, it’s, a very simple system of just checking through we ask very few questions.
You get your quote immediately. You can bind pay online and you get your policy delivered by email straight away. In addition to the policy, you will also get an email from us with three safety documents.
They are a standards. Sorry, a guide to emergency response, a best practice guide around in invasion of privacy and last, but not lease and expanded flight checklist which was produced for us exclusively by da drones.
So you get all those delivered to you as soon as you purchase purchase the policy. But if you guys have any questions about how to have it go through the process, but you can reach out to me directly and then finally, for this part of the presentation, a few just last-minute thoughts for you, a few, a few things to consider about buying The insurance, as far as the physical damage is concerned for the equipment you own.
How valuable is it you know if you, if losing a fifteen hundred dollar drone or a two thousand dollar camera, is no big deal? You want to save the premium dollars because you can afford to go out and buy a new system.
Then liability only may may well be the best option for you. If you prefer to pay as you go, if you prefer to you know to be able to account for each individual expense, if that’s, a good way for you to pass the cost of insurance on to the companies you’re Working for then, maybe an annual policy isn’t isn’t the right way to to to buy insurance.
You know you’re, probably better off going the on-demand route. What kind of budget are you looking at? I mean we can, we can ensure liability. The standard is a million. A lot of companies buy two five, but increasingly industries like the motion picture industry, energy companies and others are starting to demand higher and high limits.
So if you’re asked to provide ten million dollars for a contract. We can easily provide that type of limit. We have some clients that I over fifty million dollars worth of coverage, maybe a little high, depending on the type of jobs that you’re doing, but but certainly if you, if you can budget for a higher limit, it’s.
Certainly worth worth thinking about that and yeah just by the limit, you need for your your your contract and we look forward to working with you. So I think that concludes my part of the presentation.
Abby you’re gonna. Take it back yeah. Thank you very much Chris and Chris is the real deal in aviation insurance and has his company works not only in jester owns, but also, obviously in manned aviation, and we ‘
Re really excited about our partnership with global aerospace in the sm4 program, and there’s, going to be a lot of good stuff coming out of our partnership and in that program, and one of the coolest things is about global aerospace.
Is that they’ve partnered, with this very innovative company, their fly, which gives the ability for someone who’s just getting into drones and wants insurance, and maybe he doesn’t know if they need a full annual policy.
It gives them the opportunity to really do a shorter on demand insurance policy, which is really cool. So I will introduce you to Jay Bregman, the CEO and founder of bear fly and he’s. Also, a dart drones alumni from 2015, which is sort of crazy that he’s, one of our first students, I think so especially excited to have Jay here and at the end of this webinar.
We would love to answer any questions that you guys have and you could just submit those on the chat and I will relay them back to Jay and Chris so now off to Jay. Thank you great well, thank you so much Abbi.
I really appreciate that, and thanks so much for helping me catch the bug that eventually would lead to the founding of verify. So just a little bit about what your apply does severe apply. It provides up to 10 million dollars of drone insurance and 30 seconds on your smartphone.
That was what we set out to do. All of our policies are backed by global aerospace, so you ‘ Ve, just heard is one of most prestigious companies, and you know in the world in this space, and so what what you get is a policy that is between one hour and eight hours, depending on how long you need to cover it for it’S for a particular area anywhere up to two miles and basically the price is well, is relative to where you are actually purchasing the coverage.
So if you’re purchasing extra Airport, it’s more expensive than say. If you’re in a field and there’s, nothing around you, so we also offer up to 10 million dollars. So we offer and everything in between one and 10 million dollars and the reason that people use us is because most people that we find in the drone industry that are commercial pilots buy insurance because their clients essence buy insurance and it’s.
Not every client that asked them and of course they don’t have clients that they’re doing business for all the time, so it doesn’t pay for them to get a insurance policy. It’s. Just another cost that basically they have to carry around and then hope that they get enough work to cover it, whereas we verify you only pay as you get paid, you can pre-book insurance up to.
I think three months in advance now. So, basically, if you get a job, you can actually purchase the insurance and send a certificate to the client ahead of time, and basically you know and have them approve it.
What a lot of people do in addition to that is once you’ve registered you get a membership certificate, you can purchase policies at any time you put in your credit card. You then can present to clients in your.
You know in your marketing that you have up to ten million dollars of insurance, but the great thing is you: don’t have to pay for that insurance. When you’re, not using it, you can just pay for it when you actually have a client that demand anything between one and ten million dollars where it ‘
S been true, and so it’s. A lot more efficient system, the number one thing that we get asked by our clients is: can we use your logo in our marketing material? As a result of this? Your reply is, I think, probably one of the biggest, if not the biggest drone insurance platforms in the world, but certainly in the United States.
So over 20 percent of the nearly 70,000 commercial drone pilots in the US are registered on and they’re apply. We were a Jeopardy question that’s, actually Jeopardy answer. I suppose you know in a drone category.
Just a few weeks ago, yeah – and we really love to do business with you and and eventually answer your question. So just a couple more things from the slide verify is unique in that it basically provides both recreational and commercial use.
So if you happen to be doing, recreational flights can recover those that’s, absolutely no problem and yeah. Really it’s, just as simple as choosing an area on your smartphone. We work with both Android and iOS.
You’ll, see the price there. If you’re happy with that, you tap get insured, you have your credit card stored in there. You can choose any options that you want in this particular example. They’ve got a million dollar policy at quarter-mile radius.
At an hour you can see a satellite photo if you want, so you get exactly the correct area that your client wants and then that’s. It you purchase you get a certificate both in the app and by email. You can send that to your client.
You keep that for your own records. It’s, a certificate that is pretty much exactly exact same certificate that you would get with a global annual policy, and then you’re. You’re, really ready to go and you can qualify for any type of client that is requesting up to ten million dollars of insurance, and that could be a municipality like a film LA.
If you want to do business anywhere in the city of La it could be any kind of corporation, we do business with virtually every major media company every major real estate company, especially so we think this is something that you should really have in your toolkit.
To make it to give your business or really bad, so just a little bit more about the options, and these options have all based on what our clients want and and therefore what their clients want at their in the marketplace.
So we offer a flexible system in terms of area at halftime the limit, the weight of the drone. So if you want to pop fly a heavier drone or a lighter drone, another important thing to note so with an annual policy, your policy will be scheduled to a particular drone and if you want to add another drone, you have to pay more money or you Have to swap them around it’s kind of a pain, Revere a fly.
It’s, any drone that meets these weight limits. So basically, if you buy an eight-hour policy – and you say up to 15 pounds – you can buy any drone under 15 pounds as long as you’re only flying one at a time.
We also now support indoor flight because a lot of our real estate clients are doing indoor flight in addition to outdoor flight. No problem just do it for a small fee. You then get access to. You know two indoor coverage as well or if you want to combine that with an outdoor and into a flight in that time period, you can do that as well, and now you can even do racing, so any type of racing or contests drone racing need that Sort of thing you know just for the cash you can basically select that your coverage includes that and your coverage can either start immediately and we mean you know immediately right as you tap that or you can pre-book it for the future.
So basically, you can schedule your coverage for sometime in the future. This is probably becoming the most common way of using their apply, because, basically, what will happen is the client will know exactly when the job is and exactly where the job is, and you’ll purchase the policy in advance and then just simply show Up on site with the policy that you’ve already purchased and you’re good to go, and yes, it covers all flights up to 400 feet, which is kind of you know, standard.
We don’t, see a lot outside of that. So one of the concepts that hasn’t, we haven’t talked about yet are additional insurance and you know, as you guys get into your business and start dealing with clients who require insurance, which is almost you know, anybody good.
You will deal with additional insurance, and additional insurance basically are where your client requests to be added to your insurance policy to have certain additional insured rights and among those rights, is the ability to file a claim.
So they want to make sure that basically, not only do you have a policy, but they have the ability to file a claim on your behalf. If something happens to them because of your actions, so we have a brand new system for you know for doing this.
We offer up to five additional insured’s at no charge that you can put in pretty much as large. You know as much text as you as you want, and basically you know this allows you to do even the most complex.
You know jobs yeah, so look I mean, I think, the the main takeaway that we have from. If we’re dealing with the tens of thousands of customers and and tens of thousands of policies, you know that we’ve arranged over the past year.
I you know is really how much insurance is a requirement for a successful grown business. However, what we’ve also recognized, is how inconsistent and unpredictable like any business work and be in the drone market.
So you know all of that really says that an on-demand solution is, you know, is the one for for you, particularly as you’re starting out on your business, so happy to answer any questions. Thank you guys, all for coming great.
Thank you. So much J and that’s. I mean wow that verify app has really progressed a lot and there’s. So much new stuff in there that I hadn’t realized, oh well, that’s, really cool yeah. So just to wrap up.
We are focused on helping drone pilots get started in using drones and starting drone programs for both companies and government agencies, and there’s, a lot that goes into it beyond just being safe and knowing what insurance is right for you.
Training is huge. Obviously there’s, a lot to know about drones. There’s, so much that’s just in the minds of experts and it isn’t really out there and widely available. Yet so we do recommend that you always have a pre-flight checklist and that you’re able to go through the steps and make sure you don’t miss anything important as well as recording all of your flights in case someone does Come back and say that there was some sort of incident you have that all on record.
We also recommend creating a standard operating procedures manual and some protocols for yourself and your company to know when you are pushing the limit and when you’re. Really within a safe mission, so those are those are our recommendations for how you guys can progress as drone pilots and continue to be safe, and we will continue to have these webinars and bring in experts like Jay and Chris to speak about their their area of Expertise and and help everybody continue to progress and keep the industry progressing.
So I want to thank Chris and Jay so much for joining us and for sharing their expertise. That was great. I learned a lot and then I can’t. Believe you around jeopardy, that’s, awesome Jay! I want to be on there.
So thank you and we’ll open it up now for questions. If you want to submit a question in chat, that would be great and we could answer any questions that you have okay. So I do see one question here about the everyone: wants: the Jeopardy link that’s.
What everyone’s saying but also um Jay. They had a question about why it wouldn’t work in New York and why would verify not work in New York yeah that’s? A very common question, so verify is active in 48 states.
The two states it’s, not active, is in North Dakota and it will be in 2019. There is just a the insurance industry. Sometimes moves and regulations move quite slowly and in New York. We also hope to have it verify active this year.
What what people have to understand. I’m, not people that are not from the insurance industry. Don’t understand is, when you put when you come out with a brand new type of insurance policy and in order to actually empower this, you know hour by hour minute by minute coverage.
We had to work with global to do just that. To do a brand new insurance policy that actually has to be approved in advance by most of the states and every state gets a crack at approving it in their particular state and New York.
Like many other things in the world, you know it with regard to you know to doing business in New York. It has a more deliberate process than a lot of other places, but but yeah. What we’re optimistic that that they will join the party sometime this year, great thanks, Jay and now we have a question for Kris and the question was about: is it possible to have a policy without right infringement that make sense? I’m, not sure what the questioner is really trying to get to at that.
So what if we could take a different question – and perhaps perhaps the question I can provide more detail about what what they’re, what they’re looking for sure, absolutely so let’s see. One of the questions is okay, J, someone’s, wondering if your policy includes legal defense, so my understanding is yes.
The policy does include legal defense, for you know when it responds okay, great yes, that’s, correct the food for all the policies that we issue, whether they are annual policies or through verified.
The legal defense costs outside of the limited liability. With a lot of insurance policy, you buy a billion dollar coverage and once you’ve paid your lawyers, a million dollars you’ve, got nothing, nothing left to pay the ground for all all our policies.
The expenses are outside of the limits, so we will. We will defend your claim and and still have, that million or five five million dollars of coverage in indemnity left to pay any potential claimants.
Okay, great another question we have are: what are the normal exclusions in the drone aviation liability coverage such as territory operated in so like near airports, or maybe certain activities such as if they’re? They’re flying in stolen property? What is the the exclusions for the drone aviation liability coverage? Chris is probably better at this one than I am yes, so really.
The exclusions for those types of things are very very few and far far between and if I can sort of you know, take some of those examples. Like I said earlier in the presentation, the coverage that we provide is worldwide and that isn’t world worldwide, excluding certain airports or excluding you know, state parks or excluding anything it’s.
All you know, it really is a worldwide policy of insurance. So we don’t rely on regulations to determine how our policies respond. Of course, we hope and anticipate that our customers will will be operating legally, but let’s say you.
You know you’re, the risk manager for a reasonably large company and one of your drone operators happens to take a company drone at the weekend and fly in the grand grand canyon. And whilst he’s flying in the Grand Canyon which not, which you’re, not allowed to do, has an accident and hit somebody that would still be covered.
We don’t exclude coverage because the flight was was being conducted in a place where you know where it shouldn ‘ T have been so there’s. No exclusion for illegal acts. There’s, no exclusions around operating near airports.
You know you bust through for 400 feet, you’re still covered, but we do as part of the underwriting process. We try to understand what the you know how the operator is approaching their business, so we will ask questions about.
You know whether they insured in intends to operate within the guidelines of the FAA, whether they intend to have deliberately operate over people and assuming that the answers for those questions are given in such a way that it allows us to go ahead.
Then the policy that we issued that we then issue is very, very broad and is not designed to trip people up it’s, not designed to be full of small small prints. It’s. It’s, a broad policy for great. Thank you very much for us, so we had two ideas for you, Jay and wondering if this will be coming out any time soon for Vera fly.
One was: is there a possibility that some day, instead of having it be a radius or circle that they’re insured for it? Could it be something like a corridor area, for example, a golf course, and the second question is our idea is: does member fly do whole insurance right now or is that something that will be coming out eventually, so we don’t right now? We’ve, looked at it, you know that the issue with it, to be honest, is that you know you’re, never going to get a client job because of all insurance.
The clients do not care whether you have your own equipment. Insured, frankly, the average value of the equipment insured by most of our clients is, you know it’s, a couple of thousand dollars which is not you know very cheap, but it’s.
Basically, it’s. Nothing compared to to a million, and the third thing is you know, once you start getting into what’s called first party damage, it starts to become a lot more expensive for you know per unit of time, so we have not yet found the Formula to make that work, but we are always kind of investigating if there is a way to do that, certainly in an on-demand way or maybe even if we offered some longer term policies – okay, great great, all right, so I have to find customers go ahead.
Oh and you I’m gonna answer the golfcourse question yeah um, so we get the Golf Course question a lot and actually we, the answer is: we do actually have the technical capability or the actually a regulatory capability to draw a polygon, but The interface for that becomes really really challenging.
So what we have in the meantime is we just added the ability for you to purchase multiple circles at the same time. So, basically you could. You could purchase like the north side of the course in a circular area and then overlapping that Avis outside of the course, and that seems to work.
Okay, though, we know that we can do better, interesting, cool, okay, great. So our second to last question is: are there any different types of insurance packages specifically for fire departments and they’re asking for fire scenes or search-and-rescue, and what does the Fire Department need to know about insurance? Well, I’ll.
Tell ya you know, I. I know that there are there’s. Quite a few certain rescue teams that use verified the crisp. You can give probably a better technical answer. No, I mean I was going to give a very simple answer, which is: I think, that the opportunities for buying insurance, the reasons why they would buy insurance, the types of insurance they would buy, are exactly the same as that of any commercial operator.
I guess the only difference is that there may be operating under a certain a different set of rules, but basically the you know, the needs requirements and types of products available would be exactly the same and they can access that up.
You know whether, through Vera fly or through one of our drone portals, you know they would access it, purchase it and pay for it in exactly the same way as if they were a commercial operator. Great and then our final question that we’ll.
Go over today is someone would like to present a scenario so, for example, if they were on an assignment for commercial, real estate company and his $ 1500 drone flies away and damages a portion of the building that he’s, capturing a video of And it ends up causing $ 200,000 in total property damages, including his drone.
Can you advise this group on how this would sort of play out for both the drone pilot, as well as the client when they’re filing a claim, and in other words, what’s? The basic claims process for a scenario like this: I, like the process for claims, whether you’re purchasing through fair fly or purchasing your policy on an annual basis, is exactly the same in your policy.
Documentation in the FAQ is on either our website or on verify website. There is a there’s, contact information for who to contact in the event of a claim. You should definitely contact the insurance carrier as soon as you are aware of any potential claim.
Even if you know it let’s say there’s, damage to your equipment, but but you don’t insure it. It’s only. You know the potential for third-party damage. Even if you don’t know whether there’s, a possibility.
Well, I may have damaged the window, but I may not have done the best thing to do in that instance is to put us on notice because it’s, much easier to respond to claims early. The worst thing is for a claim to be advised.
After you know, 30 days or something and all of a sudden, we’re, trying to piece it together. You know, repairs might have been made already and it just becomes much harder and potential. Much more expensive to manage a claim in that type of situation, but let’s say that the drone did fly way.
Let’s say it went through 400 feet and it ended up damaging property on an airport. The coverage would be available, the coverage would would respond. The policy would respond to any damage caused by the drone on a third party basis, and if you purchase the physical damage coverage for your own equipment, then we would pay to either repair or replace the damaged drone.
And yet the thing I’ll. Just add to that is you know, although Vera fly is geographically based in terms of your choosing an area generally in which to purchase coverage, if your drone has a flyaway and causes damage or injury outside the coverage area, the coverage will respond.
Okay, great well! Thank you all so much Jay and Kris. It was so great to have both of you and an honor to have you and to teach some of our students what they need to know about insurance. We will be sharing the slide deck as well as a copy of the webinar.
We’ll e-mail that out to you, either today or tomorrow. So you have it and then we encourage all of you to go and check out verify and global aerospace. They’re, doing some great things, that’s, who dark drones is insured through, and we hope that this was helpful and answered a lot of your questions about drone insurance.
Everybody have a great day. Thank you very much.