Is My Drone Covered on My Current Insurance Policy?

Commercial and Personal Drone Coverage

The buzz of drones flying overhead has become more commonplace throughout New Jersey over the past few years. From realtors taking breathtaking aerial photos to engineers inspecting bridges, utilizing an unmanned aerial vehicle (UAV) can give commercial users a leg up on the competition. Hobbyists and recreational drone users are also taking to the skies in greater and greater numbers, for both entertainment and educational purposes.

Along with pretty photos, wide-ranging views, and package delivery, however, drones can carry a lot of risk, for both their pilots/owners and others. Just how much risk depends on a number of factors, such as where the drone is flown (congested areas vs. clear skies), pilot training and experience, weather conditions, and the size of the drone. Still, even a small UAV flown in an open area by a seasoned pilot can be involved in an accident or system failure. Possible outcomes include:

Potential risks from drones

Recreational UAV users do well to be sure their homeowners policy will cover their liability in the event of a drone crash or system failure that causes damage or injury. This will require a careful reading of your policy, so this is a great time to reach out to your local independent insurance agent. In some cases, a supplemental umbrella policy will make sense for recreational flyers.

For commercial UAV users, drone insurance is a must to cover potential liability, even if a commercial general liability policy is already in place. In fact, most general liability policies explicitly exclude aviation from coverage, so you’ll definitely want to contact an independent insurance agent who understands your options before you fly!

Rules for Commercial Drone Use in New Jersey

Commercial unmanned aircraft systems (UAS) consist of the drone itself and all the tools of operation (personnel, GPS, ground controls, cameras, etc.). A safe and legal UAS will follow all federal, state and municipal rules of use. In New Jersey, this means obtaining a Remote Pilot Certification from the FAA and adhering to the FAA’s Part 107 rules, as well as the following prohibitions:

• Do not operate a UAS in a manner that endangers life or property.
• Do not operate a UAS on the premises or in close proximity to a correctional facility.
• Do not operate a UAS in a manner that interferes with a first responder.
• Do not operate a UAS under the influence of drugs or with a blood alcohol content (BAC) higher than 0.07%.
• Do not operate a UAS on any lands and waters managed by the State Park Service unless prior approval has been granted by Park Service.

Drone insurance coverage is currently not a requirement in New Jersey, but most commercial drone users will want this specialized coverage. First, it protects your business assets in the event of an accident or system failure causing damage or injury. Second, smart customers and business partners are likely to require proof of UAS insurance before doing business. Third, commercial drone insurance is expected to become mandatory in the near future.

Rules for Recreational Drone Use

The rules for hobbyists are similar to those for commercial drone users, except licensing is not required. Instead, you must take the FAA’s Recreational UAS Safety Test (TRUST) and follow the FAA’s recreational model aircraft rules. Some drones must be registered (refer to the FAA rules), and there are also specific restrictions for recreational drone users concerning altitude and airspace. Additionally, federal law mandates you to prevent “flyaways” by keeping your drone within sight at all times.

Recreational UAS operators in New Jersey must also follow the same state rules as commercial UAS operators (see above). Separate municipalities may have their own drone laws, too, so be sure to check with City Hall!

Some homeowners and renters policies will cover liability claims, including those involving privacy violations stemming from drone usage, but others may not. Check your policy’s exclusions, as well as your particular risk level, before you fly your drone. If you’re in an area where a crash could cause a lot of damage, your existing policy’s limits may not be adequate to cover your potential liability. While you’ll probably not need separate drone coverage, umbrella insurance is a great choice to supplement an existing policy. If your UAS is damaged in a covered peril (storm, fire, etc.) while stored on your insured property, it will be included in your contents insurance. This, again, is a place to consider umbrella insurance or a rider to your current policy. If your drone is very expensive, policy limits may not cover replacement.

For expert guidance navigating insurance coverage for your UAS, talk to an independent agent.

Why Work with a New Jersey Independent Insurance Agent?

In order to get the protection you need and deserve, you’ll want to work with a trusted expert. And who could be better for the job than a local agent who shares your zip code? New Jersey independent insurance agents are armed with knowledge about what coverage is needed in your area, and take the time to learn exactly how much coverage is necessary for your individual needs.

These agents act as your own personal insurance shoppers, offering you more options than one-policy companies. With just one call, they’ll start gathering multiple quotes for you to review so you can be sure you get the right coverage at the right price.

And, because they’re your dedicated agent, they’re not just there at the beginning. They're also there to help walk you through the claims process and make sure you’re getting the benefits you're entitled to should an event occur.