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Increase in UAS Liability Insurance Policies

sgrant64

Member
Joined
Aug 27, 2021
Messages
19
Reactions
11
Age
60
Location
Cedar Park, TX
Wondering if anybody else has shopped for UAS liability insurance recently and noticed an extreme increase in premiums? I received a quote about 5 months ago from Global Aerospace (DBA Falcon Insurance) for ~$590. My business wasn't operational at the time, so I opted to defer. Received another quote recently for identical coverage criteria and premium has increased to $875. Double and triple checked coverage criteria. No difference.

UPDATE
After quadruple checking...found the issue. Added my Air3S on the policy but did not remove my MP2. All good. Carry on... ;)
 
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  • Wow
Reactions: Rchawks
Insurance companies increase rates for everything even if that particular type of coverage has not seen an increase in expenditure due to claims against policies. I find it hard to believe the amount of money I spend on car insurance and homeowners insurance. No tickets, no accidents, no claims in the last 40 years. The only claim I have ever had was when a drunk driver hit my boat and trailer as we were leaving a county park boat ramp facility.
 
Here is some info for all. I belong to the Academy of Model Aeronautics. The organization is open to all flyers. With a membership, you get liability insurance which kicks in after your homeowner’s policy. If no HO policy, it kicks in immediately. This is for RECREATIONAL flying, while adhering to their rules. Check their site for exact details.
Modelaircraft.org

If you want to fly Commercially, they offer commercial drone coverage through a partner, Starr aircraft, a large full scale aircraft insurer. I only use the liability portion, no hull insurance. Six drones, $500/year, no increases in the last four years, for one million dollar coverage.
AMA website: modelaircraft.org
I hope this helps thise of you looking for insurance.
 
Here is some info for all. I belong to the Academy of Model Aeronautics. The organization is open to all flyers. With a membership, you get liability insurance which kicks in after your homeowner’s policy. If no HO policy, it kicks in immediately. This is for RECREATIONAL flying, while adhering to their rules. Check their site for exact details.
Modelaircraft.org

If you want to fly Commercially, they offer commercial drone coverage through a partner, Starr aircraft, a large full scale aircraft insurer. I only use the liability portion, no hull insurance. Six drones, $500/year, no increases in the last four years, for one million dollar coverage.
AMA website: modelaircraft.org
I hope this helps thise of you looking for insurance.
Great info and as a fellow AMA member, embarrassed I missed this! Like the original poster, I also saw a substantial increase in my insurance despite no claims, and no increase in coverage or benefits.
 
Insurance companies increase rates for everything even if that particular type of coverage has not seen an increase in expenditure due to claims against policies. I find it hard to believe the amount of money I spend on car insurance and homeowners insurance. No tickets, no accidents, no claims in the last 40 years. The only claim I have ever had was when a drunk driver hit my boat and trailer as we were leaving a county park boat ramp facility.
Exactly. The low risk policy holders have to subsidize the risk of the high risk policy holders. Any net loss in claims paid by the insurer have to be paid for increasing the rates for all. Self insuring is the only alternative by posting a bond, which also costs money.
 
An interesting side thought occurred to me. I wonder if the difficulty being experienced with getting Chinese drone tech imported has/will be affecting premiums.... how exactly are the insurance companies going to arrange like-for-like replacement in the eventuality of a claim?
 
Here is some info for all. I belong to the Academy of Model Aeronautics. The organization is open to all flyers. With a membership, you get liability insurance which kicks in after your homeowner’s policy. If no HO policy, it kicks in immediately. This is for RECREATIONAL flying, while adhering to their rules. Check their site for exact details.
Modelaircraft.org

If you want to fly Commercially, they offer commercial drone coverage through a partner, Starr aircraft, a large full scale aircraft insurer. I only use the liability portion, no hull insurance. Six drones, $500/year, no increases in the last four years, for one million dollar coverage.
AMA website: modelaircraft.org
I hope this helps thise of you looking for insurance.
@PHZ The 500 annually for 1M and six drones, that is commercial correct? If so, that is the cheapest I have seen. I use Skywatch annual 1M with 1-2 drones which is $655. I just added a third drone and the jump from 1-2 to 3-5 is ridiculous.
 
An interesting side thought occurred to me. I wonder if the difficulty being experienced with getting Chinese drone tech imported has/will be affecting premiums.... how exactly are the insurance companies going to arrange like-for-like replacement in the eventuality of a claim?
Insurance companies don't arrange for like-for-like replacements, unlike DJI Care Refresh. They simply pay you the value of your loss. Replacing it with that money is your problem. That being said, Care Refresh may have difficulty getting replacements to you through Customs, especially in the U.S..
 
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Insurance companies don't arrange for like-for-like replacements, unlike DJI Care Refresh. They simply pay you the value of your loss. Replacing it with that money is your problem. That bring said, Care Refresh may have difficulty getting replacements to you through Customs, especially in the U.S..
They still prefer to do this in the UK - it's even mentioned clearly in my household policy which covers car contents as well as static belongings (home contents).
 
They still prefer to do this in the UK - it's even mentioned clearly in my household policy which covers car contents as well as static belongings (home contents).
Hmmm. My bad, if insurance policies in the UK actually require physically delivering you an identical replacement, rather than just paying you the cost. I share your concerns. I didn't buy Refresh on my last drone in the U.S. because of Customs holds and returns to sender on receiving anything DJI from China in the U.S., including DJI Care Refresh refurbs. I figured it would be a waste of money.
 
Insurance companies don't arrange for like-for-like replacements, unlike DJI Care Refresh. They simply pay you the value of your loss. Replacing it with that money is your problem. That being said, Care Refresh may have difficulty getting replacements to you through Customs, especially in the U.S..
Replacement cost insurance policies usually require the insurer to provide funds appropriate to replace the item with like kind and quality (LKQ). If the DJI drones are blocked from import, it will become very difficult to determine that cost, and if it is possible, it will likely be higher due to rarity and demand.
 


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