Insurance Insights

Drones over Christmas


December 23, 2016

In Canada, there are Safety guidelines from Transport Canada for  recreational flyers they can be found at the following link

For non-recreational operators, there are more extensive rules and regulations.  Non-Recreational operators will either need to meet all of the Exemption Requirements spelled out by Transport Canada or apply for a SFOC (special Flight operations certificate)

In Canada Insurance for recreational operators is still limited due to the current regulatory system.  Most home insurance companies will not cover drones or the liability associated with them.  It is important to check with your individual policy wordings.  Most will be excluded under an aircraft exclusion.  Transport Canada has defined drones as an aircraft.   There may be some that will pick up the exposure of a model aircraft, but most will not.  You can not assume that it will be covered under your home insurance as it likely will not.

Auto Insurance will not cover the contents of the vehicle.  In the event that a drone is stolen from a vehicle, ICBC will not cover it.  In the event that you fly the drone into your own car, your comprehensive coverage  may pick up the damage to the car.  In the event you fly into someone elses car you will need specific insurance to cover both the drone and the third parties damage.  With out specific insurance you may be responsible for any third party property damage or bodily injury claims.

If you are operating non-recreationally, you will require specific UAV insurance.  Not only is it required by law, but it can protect you in the event of a bodily injury or property damage claim.  Commercial General Liability insurance has an aircraft exclusion in the wording.  In most cases your standard business insurance will exclude the operation of drone.  It is important that you are aware of what your policy covers and what is not covered.  There are specific policies available to cover the operations of drones.  There is more to flying a drone than most people thing.  Knowing what you can and cant do and when  you are covered and when you may not be is imperative if you are going fly a Drone or a UAV.

About the Authour

Calvin Reich

Calvin Reich has worked in Commercial Insurance for the past 16 years. He has a strong aviation background including his commercial pilots license which has helped him emerge as the leading UAV insurance expert in Canada. Calvin is on the board of directors and executive for Unmanned Systems Canada and speaks at various events and conferences across the country on this challenging and developing industry. l LinkedIn

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