AIG Insurance Can Now Cover Your Drone and the Liability That Comes with It

AIG Insurance Can Now Cover Your Drone and the Liability That Comes with It

Not so surprisingly faster than the FAA, apparently, AIG sprung into action to allow drone operators and owners to purchase insurance that covers not only their drone and camera equipment, but also a number of other terrible things that can happen while you're piloting a UAV.

Drone operation can be dangerous, but it allows those of us willing to do it safely get great images at affordable prices for our clients. For those that do this enough, drone insurance is now a possibility that should be seriously considered. AIG's new unmanned aircraft insurance offers third-party liability coverage in addition to covering your non-piloting crew (sliced fingers, anyone?), electronic malfunctions, and even war, hijacking, and terrorism. Plans can be specifically tailored to your needs, but you'll need to talk to an agent to negotiate your plan for you.

Odds are that you'll get a better rate if you can prove you've been doing this for some time or if you have exemption status from the FAA and/or a pilot's license. But anyone looking to protect their equipment and then some should consider insurance.

An Allstate Insurance Agent stated over the phone that Allstate's policy on coverage related to photography varies depending on the use and circumstances, but that these days, whether or not you plan to use drones in your work is a question that is asked could be a reason that they might not cover your business. This is at the start of buying your policy, however — people with existing policies where drone photography is not mentioned are sometimes covered unless there are specific exclusions otherwise.

Meanwhile, a Hiscox agent in an online chat dialogue confirmed that they do not cover anything relating to drones or the use thereof in photography:

...At this time we do not offer coverage for drones and use of those drones in photography ... Full policy documentation is sent out to our clients via email at each renewal. According to our underwriters there are no circumstances that we would cover use of drones under the policy.  

As it stands, it appears that AIG's UAV-specific insurance is the best and most comprehensive option for drone operators that really want to be protected.

UPDATE: The relatively well known and well respected insurance company, Hill & Usher, responded to an earlier voicemail, saying that they have offered comprehensive UAV-specific insurance coverage for liability, equipment, etc, related to drone photography for over "going on" nine years. Various underwriters handle different aspects, but they are one of the "less than one tenth of a percent of insurance companies" offering UAV-specific coverage for your business (now, along with AIG, apparently).

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16 Comments

Spy Black's picture

Either people at AIG are very naive (highly unlikely), or they smell a great way to make a lot cash. You have to wonder how legally porous that coverage must be. We'll have to wait and see how this all pans out. This almost sounds comical.

Paulo Macedo's picture

Here where i live, not even photography gear has insurance. God damn it i hate this third world country.
"Ohhh we belong to the european union"...yeah what for?

I'm sure there are other benefits.

Ian Johns's picture

There are. You don't have Donald Trump running to lead your country.

Paulo Macedo's picture

Hahahahaha ok you got me there.

Dare I say, if that comes to conclusion with "it" and the mass of blubbering flesh underneath holding the "most powerful position on earth"... now THAT would be a good enough reason for me to look for a new home for awhile(!)

Quite picturesque where you live and I don't know if "insurance" is a good enough reason to move... however...

You could always make your way north to Bonn, Germany where a rather large group of Portuguese have settled since around the 70's. Germany has insurance for everything(!)... much of it mandatory, such as general business insurance. Also electronic insurance is quite payable and I've had it since the early 90's for my design and IT consulting businesses and all of the equipment over the years.

Paulo Macedo's picture

Sure Doc. Thing is, i don't speak german. I speak french, spanish, english and portuguese, but not german. I want to learn it though.

German = not necessary. You get the news down in Portugal? Everyone from anywhere is "Herzlich Willkommen".

Only 2 words you need to know: Ja=yes... Nein=no. Everything else in between is just noise.

Paulo Macedo's picture

Hahahaha not noise! I like to hear german!

I wonder if their insurance covers getting drones shot out of the sky, like that Kentucky drone killer that was recently in the news.

Martin Beebee's picture

Worth noting that you can't actually buy insurance directly from AIG -- you have to work with an insurance agent who negotiates coverage and terms before you can even get an offer of coverage.

Adam Ottke's picture

That's a great point... I'll clarify this, but yes, for those wondering, as far as I know, all drone coverage essentially requires an agent to help you navigate how complicated it all is. Otherwise, you could easily and unknowingly find yourself under-covered (at risk) or over-covered (over-paying).

We have fantastic rates on UAV and Drone insurance starting at $595 for a $500,000 Liability Insurance Policy! Check out www.insurancebwi.com for a quote!

ISA AYDIN's picture

AMA is covering up to 2 million dollars

ISA AYDIN's picture

btw Hiscox said if you have drone we will not provide you even usual general liability ))))