Drones Insurance

Drones and unmanned aerial systems (“UAS”), are one of the fastest growing areas of the aviation industry. They have implications in virtually every business sector providing a cost-effective way of getting business done. With their continued development, there is no doubt they will become more mainstream than ever. Yet, today’s business owner cannot fail to notice the importance of implement effective insurance strategies to minimise drone risk from the start. Take a closer look at the drone industry and how proper drone insurance can minimise the risks you face.

Over the next ten years, it is estimated that 10% of the global civil aviation fleet will be unmanned and that global spending on these types of vehicles will double to $11.5B (US) by 2023. Drones provide an opportunity for businesses to do more with less manpower, as well as provide an opportunity for today’s businesses to grow faster.

The advantages offered by drones are clear. They can do more than humans. They do not require labour costs and continue to offer more innovative solutions and better opportunities for industrial and commercial applications. With all of these key advantages, it may seem simple enough for drones to be added to any business process, especially as costs lessen and access improves. However, drone usage creates numerous additional risks including those to national security and privacy matters.

Osprey Insurance Brokers provides comprehensive drone and unmanned aerial systems coverage and has done so for 20 years. We’ve worked to provide comprehensive coverage in a growing and changing market. Established in 1995, Osprey Insurance Brokers has worked to build a company focused on providing complete UAS insurance protections. We are a leader within this developing industry and we specialise in high-risk coverage. Osprey Insurance Brokers offers a large selection of aviation insurance products aimed directly at the UAS industry. Our extensive market knowledge and experience in this area has helped us to provide our customers with the ability to reduce risk and improve overall coverage. Our coverage is available for all types of UAS and continues to develop to meet the growing and changing needs within this industry including as new applications and new products become available on the market. Headquartered in Malta, Osprey Insurance Brokers is regulated by the Malta Financial Service Authority and licensed to provide UAS insurance brokering services.

Osprey Insurance Brokers aims to assist and support customers in achieving risk mitigation in an affordable manner while utilising our extensive expertise and experience within the drone and UAS industry.

About Us

Our Mission

Operators of drones, both for commercial and governmental use, must maintain efficient policies to minimise key risks and provide safeguards for operational use. Drone insurance is not new, having been in place in some areas since the 1980’s. However, today’s drones are more advanced and present further risks as they continue to grow and change. Risk analysis of drone usage is very complex and not always clearly defined, but investment in drone technology should not be avoided by businesses because of this complexity. To help implement their use, working closely with an organisation with experience in drone insurance is essential.

While risks exist, opportunities abound within this market. Osprey Insurance Brokers aims to provide comprehensive insurance customised to meet the individual needs of each of our customers. We focus on these areas as stepping stones towards creating custom packages.

• Number of flight hours in use

• Type of use

• Area of use

• Value of the aircraft

• Perceived liability risks

KEY FACTORS THAT WILL DETERMINE RISK

ANALYSIS AND RISK PROFILES OF DRONES

INCLUDE:

Insurance and the

Drone Industry

OPERATORS

This type of policy is likely to cover the aircraft itself including the airframe, operating system, flight controls and propulsion units, aircraft payload, such as camera equipment and sensors and packages, transit coverage, spares, the ground station and control unit.

PHYSICAL LOSS INSURANCE

COMMERCIAL DRONE LIABILITY INSURANCE

TOTAL LOSS INSURANCE

UAS HULL DAMAGE

AIRCRAFT HULL AND SPARES WAR AND ALLIED PERILS

The most comprehensive policy mitigates against risks associated with drone operation. Accidents covered in such policies include loss or damage to the UAS and associated equipment, premises liability, manufacturer product liability, coverage for aircraft operators such as non-pilot and on-ground crew, and third party legal liability.

Total Loss Insurance provides for a claim at a fixed sum as well as in addition to the UAS at the Agreed Value payable under the Hull All Risk policy in the event of a total loss.

UAS Hull Damage provides cover for the actual structure of the vehicle, as well as spares, for all risks. This may include accident loss or damage to the aircraft or spare parts and components during operations.

Specific to drone operations, this cover aims to write back most of the war and allied perils that were excluded under the Wall and Allied Perils Exclusion Clause found in the Hull and Spares All Risk policy. It further extends coverage to protect UAS and spares against risks ranging from war, strikes, riots, civil commotions and labour disturbances. It also offers protection from terrorist acts, malicious acts and sabotage, confiscation and requisition by government and hijacking.

LESSORSAs drones become more valuable and use widens, the need for lessors and

financiers to remain protected within this environment is growing as well.

This cover, which extends to include hull, war, or liability, provides protection to cover exposure of banks, financiers, and leasing companies where protections under primary UAS operators fails to respond to a loss. This may occur as a result of insufficiency of operators policy to meet the liabilities, gaps in coverage from non-renewal or cancellation, failure by operator brokers to notify insurers of financiers or lessors interest, and restrictions on policy proceeds.

This type of UAS cover provides protection to financiers and lessors as related to political risk, a growing threat in various areas. It covers the financier or lessor in the event that it is unable to recover UAS resulting of the actions or inactions of a foreign host government, which may include failure to deregister an aircraft, inability to obtain expert certificate of airworthiness, inability to

CONTINGENT INSURANCE

UAS REPOSSESSION INSURANCE

ADDITIONAL RISK MITIGATIONS REGARDING REGULATIONS

• SIZE AND WEIGHT OF THE AIRCRAFT INCLUDING

CONCERNS REGARDING REGULATIONS

• PAYLOAD DEPENDING ON USAGE, ESPECIALLY IN

SITUATIONS WHERE A HEAVY LANDING OCCURS

• FRAUD AND THEFT CONCERNS WITH COMMERCIAL USE

DRONES COSTING US $250,000; IN SOME INSTANCES,

THESE ARE HIGHLY PORTABLE TYPES OF EQUIPMENT

LENDING THEMSELVES TO THEFT

• ADVANCED TECHNOLOGY, WHICH MAKE REPLACEMENT

PARTS FOR MACHINES DIFFICULT TO OBTAIN

• PRIVACY MATTERS RELATED TO CLAIMS OF BREACH OF

PRIVACY BY THIRD PARTIES (THOUGH THESE RISKS ARE

OFTEN EXCLUDED BY INSURERS)

• CYBER RISKS ASSOCIATED WITH USAGE OF UNITS UNDER

400 FEET BANDING, WHERE IT IS POSSIBLE TO LOCK

INTO THESE UNITS THROUGH BROADBAND AND WIFI

CONNECTIVITY

• OPERATOR AND PILOT EXPERIENCE, INCLUDING

MEETING ALL NECESSARY REGULATIONS AND TRAINING

REQUIREMENTS

• BROAD USAGE, WHICH CAN EVEN VARY FROM ONE DAY TO

THE NEXT FOR THE SAME VEHICLE-MAKING INSURANCE

ACTIVITIES A BIT MORE COMPLEX

Coverage for drones must be flexible to meet ever-changing regulations. Key areas of concern within policies extend to include:

CUSTOMISED, TAILORED AVIATION INSURANCE SUPPORT Osprey Insurance Brokers works directly with customers to create comprehensive and custom insurance policies to mitigate risks associated with individual business operations. Our complete research and analysis of your aviation needs allows us to establish a package that keeps risks at bay while also providing an affordable price on the protections needed. Expect personalised service and attention to your needs from our experienced staff and industry leaders.

CONTRACT RISK MANAGEMENT Our team will advise our customers on all insurance clauses and requirements. We’re happy to assist you with the initial stages of drafting and negotiating insurance and indemnity clauses in business contracts. This risk mitigation is critical to running a smooth marine operation. Let our expertise in aviation industry aid your operations.

ALTERNATIVE RISK PLACING METHODS Osprey Insurance Brokers provides you with all-inclusive service that extends to risk management on a variety of different self-insurance methods. Let our team provide guidance, assistance, and advice on the feasibility of establishing risk retention vehicles including captive insurance companies and cells to meet your insurance and reinsurance requirements.

EMERGENCY MEDICAL ASSISTANCE AND CLAIMS SERVICES When in need, our customers rely on Tangiers International worldwide emergency medical assistance. Aptly named, Tangiers International operates in over 50 countries, speaking 52 languages and managing over 40,000 global medical service providers.

TRAVEL SERVICES By accessing related companies within the group, our service to customers begins before they leave home. OBS Advisory is an online platform that offers real-time updates in conflict zones, security information, and detailed analysis of global hotspots and Tangiers’ field personnel support.

We’reWhere You Are

Headquarters 54 Melita StreetValletta VLT 1122Malta Contact us: info@ospreybrokers.com Tel. +356 2778 1197 www.ospreybrokers.com

The company (Reg.: C19103) is licensed to carry on the business of insurance broking and is regulated by the Malta Financial Services Authority