Drone risk and Insurance in Public safety/Search & Rescue

Simon Ritterband, Managing Director of Moonrock Drone Insurance

discusses the Importance of Adapting Insurance Policies to Ensure Safe Drone Operations in Public Safety and Search & Rescue

Moonrock have been specialising in drone insurance since 2015 and over the years seen exponential growth in the search and rescue sector, as drones rapidly became a valuable tool for public safety and search and rescue operations. They can quickly and efficiently cover large areas, provide real-time situational awareness, and assist in hazardous and challenging situations. However, as with any technology, there are risks involved, and its up to the insurance companies to better understand these risks to provide adequate coverage.

Insurance companies must understand the unique risks involved in drone use for public safety and search and rescue operations. One approach is to create specialized policies for these operations that cover the specific risks and liabilities involved. These policies should include coverage for 3rd party liability claims to property damage, personal injury, and privacy violations. Its common for most organisations operating in these environments to request £5m public liability cover, as opposed to the CAAs mandatory requirement of £1m (which conforms to EC 785/2004).

Public Liability risk: Protection against claims made by third parties for property damage or bodily injury resulting from drone operations.

Risks of Drone Use in Public Safety and Search and Rescue Operations:

Collisions: Drones can collide with other aircraft, buildings, and people, causing damage and injury.

Privacy: Drones equipped with cameras can violate privacy laws by capturing images and videos of individuals without their consent.

Technical malfunctions: Drones may suffer from technical problems such as software glitches, mechanical failures, or signal loss, which can cause crashes or loss of control. Security: Drones can be hacked or hijacked, which could compromise sensitive information or endanger the public.

Insurance Considerations: Pilot training and competency, flight locations and operations.

The competency of the drone pilot has a direct impact on the safety of an operation and the potential for accidents, which in turn affects the risk profile for the insurance company.

The level of training and experience of the drone pilot can affect their ability to operate the drone safely, avoid collisions, and respond to unexpected situations. For example, a pilot with insufficient training or experience may not be able to recognize and respond appropriately to a technical malfunction or a sudden change in weather conditions, which could lead to an accident.

Insurance companies can also offer discounts or other incentives to drone operators who demonstrate a high level of pilot competency or who have completed specialized training programs. This can help to encourage safe and responsible drone operations and reduce the overall risk profile for the insurance company.

Unfortunately, over the years we have seen a higher number of claims proportionality from non-commercial operators as opposed to commercial operators. We attribute this to the view that operators are sometimes more thoughtless about the drone itself and believe that because its not actually their equipment any damage will simply be picked up by the insurance company. Whereas commercial operators take a view that any damage to the drone will have an impact on potential future operations and increase in premium rates.

Insurance companies need to ensure that organisations follow safety guidelines and protocols established by industry organizations such as the CAA, specific emergency services and rescue teams. Insurance providers can also work with their clients to identify and mitigate potential risks.

In conclusion, the use of drones for public safety and search and rescue operations has rapidly increased in recent years, making it essential for insurance companies to adapt to the evolving risks associated with this technology. Insurance providers must create specialized policies that cover the specific risks and liabilities involved and promote pilot training and competency to encourage safe and responsible drone operations. Additionally, insurance companies need to ensure that organizations follow safety guidelines and protocols established by industry organizations. By doing so, insurance companies can effectively support the growth and safe utilization of drones in these critical fields.

Simon advises the UK government and industry stakeholders, including the Department for Transport, Civil Aviation Authority, and British Standards Institute Committee. Moonrock, a leading drone insurance provider, offers comprehensive policies in partnership with A-rated insurers. Their coverage includes privacy invasion, cyber-attacks, hull damage, noise incidents, and public liability insurance.

Contact Simon: simon@moonrockdroneinsurance.com

Website: www.moonrockinsurance.com

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