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Unmanned Aircraft Coverage Now Available
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Initially used to support public interest needs like disaster relief and law enforcement activities, commercial drones (unmanned aircraft) are changing how business does business. Some companies are testing out uses for product delivery while others rely on them for aerial views of special events like weddings, or images of construction sites to perform inspections or measure work progress.
Along with the potential benefits are risks. We recognize these exposures and offer optional unmanned aircraft liability and property coverage with features your customers won't get from every other carrier. In fact, we are one of the first to offer property coverage for unmanned aircraft. Easily endorsed onto a Spectrum® business owner's policy, customers can purchase:
| Unmanned Aircraft (Liability)
- Limit: Business Liability limit on the policy; no sub-limit applies as is required by some carriers
- Scheduling unmanned aircraft is not required
For example…
A photographer using a drone to shoot overhead photos of a wedding loses control of the drone when a big gust of wind knocks it into a wedding guest, causing injury to the guest.
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Unmanned Aircraft (Property)
- Limit: Business Personal Property limit on the policy
- Exception: A sub-limit applies if the loss occurs while the drone is being operated or flown
- Sub-limit options: $5K - $50K
- No underwriting touch when the requested in-flight limit is < $10K
- Scheduling unmanned aircraft is not required
For example…
Using a drone to shoot aerial views of properties he has for sale, a realtor loses control of the drone when a gust of wind carries it into a nearby tree, damaging it.
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To access additional information and marketing material for Unmanned Aircraft and all of the recent Spectrum coverage enhancements, visit Marketing Central.
HERE'S WHAT YOUR PEERS ARE ASKING
Our agency education consultants have been holding training sessions on the new Spectrum enhancements. We thought it would be helpful to share the questions we got about the new Unmanned Aircraft coverage and our responses.
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Most new drone companies provide marketing services for real estate agencies. Is a separate BOP needed or is this endorsement available?
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Our intent is to cover a business' incidental drone use; not drone companies. The class of business must be eligible, and drone use must be consistent with operations for that class of business.
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Do you cover the payload on a drone (ie: attachments such as cameras, navigation systems)?
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The proper means of covering camera equipment has not changed. Business Property attached to a drone is subject to the conditions of the Spectrum Business Personal Property coverage limitations.
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Do you have to be a licensed pilot to qualify?
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The operator must meet FAA small unmanned aircraft rule Part 107. This requirement applies to all operators.
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Do you need to name or schedule the drone under equipment on the policy?
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No schedule is required.
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Does your drone coverage apply to "peeping tom" exposures?
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Personal and Advertising Injury is covered if purchased, however, unmanned aircraft coverage does not extend to "peeping tom" exposures.
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What about liability exposure if the drone is leased?
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The operator must meet FAA small unmanned aircraft rule Part 107. The form defines unmanned aircraft as owned by you or owned by others, but in your care, custody or control.
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When adding drone coverage, is there an exposure threshold we should stay under (eg: 20% of sales from drone use)?
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100% is ineligible. All other amounts require underwriter review to assess the type and extent of operations or use. Our intent is to extend coverage to businesses within our Spectrum appetite where drone use is ancillary to operations.
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Is there an umbrella exclusion for unmanned aircraft that we should add as well?
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An unmanned aircraft exclusion will be added to all umbrella policies with the release of this new coverage.
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How do you feel about accounts that sub-contract drone operations? Do we evaluate as if it were the insured's operation?
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The subcontractor needs to provide their own insurance.
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What coverage is available to retailers that may sell drones?
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Stock is considered Business Personal Property when the unmanned aircraft property option is purchased.
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ADDING NEW COVERAGES TO EXISTING POLICIES
When we roll out new coverages, you want to know if you can add them now or if you need to wait until renewal. The new coverages can be endorsed onto the policies of existing customers as long as the policy process date, not the endorsement process date, is greater than 3/10/17 (or later depending on state approvals) OR greater than the effective date of the state approval. In some cases, customers may need to wait until their next renewal.
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EXAMPLE #1
Assumptions
Spectrum Enhancements Effective Date: 03/10/17
Policy Renewal Date: 04/01/17
Renewal Process Date: 02/01/17
Based on these assumptions, a customer could not add the new coverages until their next renewal since their renewal process date preceded the effective date of the Spectrum enhancements.
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EXAMPLE #2
Assumptions
Spectrum Enhancements Effective Date: 03/10/17
Policy Renewal Date: 07/01/17
Renewal Process Date: 05/01/17
Based on these assumptions, a customer could add the new coverages since their renewal process date is after the effective date of the Spectrum enhancements.
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Interested in training? Contact your Agency Education Consultant.
Offer your customers protection from an insurance company that's been helping businesses prevail for more than 200 years. Offer them The Hartford. They'll be glad you did.
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Prepare. Protect. Prevail. With The Hartford.®
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The Hartford® is Hartford Fire Insurance Company and its affiliated property and casualty insurance companies, 690 Asylum Avenue, Hartford, CT 06155.
Certain coverages vary by state and may not be available to all businesses. All Hartford coverages and services may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Financial Services Group, Inc. In TX, this insurance is written by Sentinel Insurance Company, Ltd., Hartford Casualty Insurance Company, Hartford Lloyd's Insurance Company, Property and Casualty Insurance Company of Hartford, Hartford Underwriters Insurance Company, Twin City Fire Insurance Company, Hartford Accident and Indemnity Company and Hartford Fire Insurance Company. In CA by Sentinel Insurance Company, Ltd. (CA license # 8701) and its property and casualty insurance company affiliates, 690 Asylum Avenue, Hartford, CT 06155.
© Copyright 2017. The Hartford.
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