According to a recent article published by Insurance Journal, corporate risk managers expect 40% of businesses to start utilizing drones within the next five years. These same individuals are stating that they will purchase insurance for their drones, even if it’s not mandated by law. The Federal Aviation Administration (FAA) estimates that 30,000 commercial and civil drones could be in U.S. skies by 2020, creating 100,000 jobs and contributing $82 billion to the U.S. economy. Not bad, but are business professionals right to be considering their Professional Liability Risks?
According to drone company Skyward’s CEO Jonathan Evans, insurance companies most certainly will be reviewing and updating their policies to include or exclude drone coverage, as these are open-air vehicles that will be flying through and over urban environments, raising the potential for damage to homes, businesses, and other types of property, increasing the liability risks of the companies utilizing them.
What other types of drone risks should your clients be aware of? As Dan Kara, an ABI Research analyst, points out, the services and information offered by drones is stored, manipulated and optimized using computer technology. This means that drone use also comes with inherent cyber liability risks. Overall, companies need to know that drones are safe and reliable before they jump into using them for their business needs.
At PLRisk Advisors, we understand the unique Privacy and Network Security Risks and Professional Liability Risks, or Errors and Omissions exposures that your clients face on a daily basis. While being prepared and diligent can help your clients reduce their risks, it’s vital that they be financially protected with the right insurance policy. For more information about our products and the professions we serve, please contact us today at (855) 403-5982.
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