How to be safe in case of accident – Insurance

Insurance is basically about spreading and sharing risks. That is, several people pay a smaller amount, a so-called premium. The premiums are then put together in a pot. If any of the insured people suffers an injury or accident, that person will receive an amount of money to compensate for the loss.

The amount payed for the premium depends on probability of accident, but also on the cost of the potential damage. Insurance is often optional, but it may also be obligatory, as in the case of third party liability car insurance. This is something that we will go deeper into in this section: liability insurance for drone operators.

There are many different types of insurance, but for those who fly drones, there are mainly two that are important to be aware of: liability insurance and non-life insurance. There is no requirement for drone operators to have non-life insurance – but liability insurance for those flying drones over 20 kilos is obligatory and, in addition, recommended for all weight classes. If an accident occurs while conducting an illegal or unapproved flight it will not be covered by insurance.

If you ruin it for others

Liability insurance, or third-party insurance, covers what you cause to others but not what you cause for yourself. If an accident occurs – your drone might crash into someone else's property – the liability insurance covers the cost of the damage that the drone made on the other person’s property, but not the cost of the damage on the drone itself.

If you don’t have liability insurance, the cost of compensating what has been destroyed in an accident may be very high – so high that it can be difficult to cover for a single person. In some cases, you may even have to pay indemnity if you hurt or damage someone else or their property.

However, if you have been grossly negligent or in some other way violated the law, your liability insurance will not apply. In those cases, you have to bear the cost yourself.

If you ruin it for yourself

Non-life insurance, also known as general insurance or property insurance, covers what belongs to you. For example, if your drone breaks down in a crash, in a fire or gets stolen, the damage will be compensated by the non-life insurance except for the excess cost.

What is covered by the home insurance?

Often, both non-life and liability insurance are included in a home insurance. However, many home insurance policies may have limitations when it comes to flying drones –some policies do not cover drones at all. This means you should not take for granted that you are covered before checking what your home insurance covers.

Flying on behalf of someone else

If you get paid or receive some other form of compensation for conducting a flight, the home insurance usually does not apply. If you are self-employed, you will therefore need a business insurance. As with home insurance, the business insurance is often limited when it comes to drone operations. Choose insurance and insurance company carefully, or be sure to know what is included in your business insurance if you already have one.

If the drone is damaged during transport

If you need to engage a transport company to move your drone and it gets damaged during transport, you will usually only receive compensation in relation to the weight of the drone. This usually means a big financial loss. Therefore, it may be a good idea to take out a transport insurance. This can be done through some transport companies directly, or at various insurance companies. Also, many business insurance policies cover transport damage. Keep this in mind if you are planning to take out such an insurance or already have one.

Different insurance companies have different conditions regarding what damage is covered or limited in their insurance policies. Therefore, find out the conditions of the companies’ policies and choose the one that suits you and your purpose best – especially since many companies have restrictions and limitations when it comes to drones.

Different countries, even within the EU, may have their own rules and requirements for insurance. So, in addition to checking which laws apply in the country you are about to fly in, check where your insurance applies geographically.

To consider before choosing insurance

• Requirements: Every drone operator who has drones over 20 kilos must have insurance that covers the cost of damages to others. However, this is recommended even for operators of lighter drones.
• Fly privately: Check the terms and conditions of your home insurance.
• Fly commercially: Check the terms and conditions of your business insurance.
• Special insurance: If you are not fully covered by your home or business insurance check out special insurances that are more suitable.
• Flying abroad: Make sure your insurance covers any damage caused abroad and find out if there are any national rules in the country you are about to fly in.