Every professional service provider knows that drone insurance is an important part of doing business. Here, drone insurance specialist Yuval Caspi explains how it works, what to look for, and how to make sure you’re covered when accidents happen.
Managing Mayhem: A Discussion with Yuval Caspi, Skywatch
By: Dawn M.K. Zoldi, Guest Contributor
This week on the InterDrone Drones at Dawn podcast, I had a great conversation with Yuval Caspi from . Yuval is a licensed insurance broker and drone insurance specialist. For the past two years, she has worked closely with drone pilots and businesses from different sectors to understand their diverse coverage needs. Here, she answers some of the top questions about insurance from drone service providers (DSPs).
Dawn: A lot of DSPs ask, “Do I even need insurance?” What are the top 5 reasons people should seek insurance for their drone operations?
Yuval: There are usually two main reasons people do get coverage and five important considerations why they should. The two main reasons are: (1) getting coverage for one’s own sake – one’s own business desire or (2) meeting a client’s demands. Insurance is all about operating safely, which is the primary concern, always. Having insurance on board is the first step to safe operations. Second, it establishes the DSP as a professional. As mentioned, most companies that hire DSPs require insurance. Having it in advance saves time and bolsters a company’s credibility. Third, it mitigates risk and is helpful in obtaining approvals for waivers. Fourth, it allows you to fly with peace of mind, knowing you are covered if something goes wrong. Finally, being able to make amends in the event of a mishap and being accountable for potential mishaps helps to bolster public perception and promote the entire drone industry. Ultimately, the goal is to have a policy that meets your own business desires and needs but can also be modified on the go to meet clients’ demands as they arise.
Dawn: Can you explain, briefly, the different coverages and when, generally someone might need one over the other ?
Yuval: Good aviation policies offer third party aviation liability which includes property damage, bodily injury, and personal injury pertaining to accidents caused by your drone operations as opposed to everyday accidents. Bodily injury refers to medical expenses and physical accidents, whereas personal injury refers to coverage for libel, slander, or invasion of privacy. This type of coverage is going to protect you against accidents caused by your drone operations which result in 3rd party damage. Aviation coverage needs are often different from general liability coverage. In fact, damage caused by any type of aircraft, drones included, may be excluded from your business or LLC’s general liability policy. This is why an aviation policy is likely needed to supplement other coverages. If your drone operations are included in your homeowner’s policy, or any other plan, you want to make sure it also includes commercial use and not just recreational. If you operate professionally (hired by a client to conduct an operation) you want to have 3rd party drone liability because if anything were to happen, you want to make sure everyone around you is protected. If you are flying for recreational purposes, this same kind of policy will protect you for 3rd party damage. Hull coverage is different from 3rd party liability. It protects your drones and equipment from physical damage, loss or theft. This coverage is usually optional, and it really up to you to decide how much of your investment to protect.
Dawn: What’s the process to obtain aviation insurance?
Yuval: You can activate a policy in any way that best suits your needs. You can activate it with a broker over the phone and get support throughout the process. Alternatively, and the faster method is to activate it online. A
Dawn: What are the biggest mistakes you’ve seen people make that got them into hot water?
Dawn: What are some practical tips you’d give to keep a company to stay clear of trouble?
Dawn: What practical advice would you give someone, once they get their insurance?
Dawn: Accidents happen. What tips would you give someone who has an accident?
Dawn: How easy is it to file a drone insurance claim?
Dawn: How soon are claims paid out?
Miriam McNabb is the Editor-in-Chief of DRONELIFE and CEO of JobForDrones, a professional drone services marketplace, and a fascinated observer of the emerging drone industry and the regulatory environment for drones. Miriam has penned over 3,000 articles focused on the commercial drone space and is an international speaker and recognized figure in the industry. Miriam has a degree from the University of Chicago and over 20 years of experience in high tech sales and marketing for new technologies.
For drone industry consulting or writing, Email Miriam.
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