Munich Re has launched a new commercial drone endorsement for insurance companies and their small to medium-sized customers.
Federal Aviation Agency (FAA) Rule 107 went into effect in August 2016, opening the sky to commercial drone operators. The FAA anticipates that 2.7 million commercial drones could be in use by the year 2020.
“New regulations have spurred the commercial use of drones across a broad spectrum of industries, from photography and security to firefighting and law enforcement,” said Tim Brockett, senior vice president, reinsurance division strategic products, Munich Re America.
“But as companies and public entities find new, safe and cost effective ways to use drone technology, most commercial insurance policies don’t cover or offer very limited liability protection for drones.
“Our Drone Liability Endorsement addresses an emerging market need and offers a customized insurance solution to help protect companies against potential liability as the result of using drones.”
The endorsement can be attached to an existing commercial general liability insurance policy purchased through a participating insurance carrier. “The endorsement provides bodily injury and property damage liability and/or personal injury liability coverage for drones that are under 55 pounds. It is designed for small to medium size businesses and farm and agricultural operations in the US,” Munich Re said in a release.
The Drone Liability Endorsement can be customized based on insurance carriers’ existing commercial lines policies and their policyholders’ needs. Claims are handled by the insurance carrier.
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