New Jersey-headquartered Munich Reinsurance America Inc. (Munich Re, US) has launched a new product that the company says offers a customized liability solution for insurance companies and their customers that are commercially flying drones under the Federal Aviation Administration’s Part 107.
The company’s drone liability endorsement can be attached to an existing commercial general liability insurance policy purchased through a participating insurance carrier. According to Munich Re, US, the endorsement provides bodily injury and property damage liability and/or personal injury liability coverage for drones weighing under 55 pounds.
“New regulations have spurred the commercial use of drones across a broad spectrum of industries – from photography and security to firefighting and law enforcement,” comments Tim Brockett, senior vice president of the reinsurance division’s strategic products at Munich Re, US. “But as companies and public entities find new, safe and cost-effective ways to use drone technology, most commercial insurance policies don’t cover or offer very limited liability protection for drones.
“Our drone liability endorsement addresses an emerging market need and offers a customized insurance solution to help protect companies against potential liability as the result of using drones,” Brockett continues.
The company says the new product is designed for small to midsize U.S. businesses. Further, it can be customized based on insurance carriers’ existing commercial lines policies and their policyholders’ needs; claims are handled by the insurance carrier.
“Ease of use is also a key deliverable of this new offering,” Brockett adds. “Insurance carriers that offer the drone liability endorsement to their commercial policyholders will have access to an application programming interface that will seamlessly verify that the drone and drone pilot have active and valid registrations with the FAA.”