ISO Introduces Drone Insurance Coverage Options for Commercial Inland Marine Market

The new ISO forms provide insurers with underwriting tools to address commercial drones, which have developed a wide range of potential and reported uses, including package delivery, crop protection, and aerial photography.

(3DR Solo Smart Drone. Source: 3DR.) 

ISO (Jersey City, N.J.) has announced, with a rare flash of humor, that it is “preparing for the potential rise and fall of commercial drones,” with new inland marine insurance forms to help protect businesses from the costs of such potential crashes, including damage to the drones, their equipment, and their cargo.

The new ISO forms provide insurers with underwriting tools to address commercial drones, which have developed a wide range of potential and reported uses, including package delivery, crop protection, and aerial photography, an ISO statement elaborates. For enhanced flexibility, the new coverage options allow for drones to be covered under a stand-alone coverage form or by endorsement to some ISO commercial inland marine classes.

ISO has also introduced a comprehensive advisory application, sample instructions that provide details on some coverage features of the new ISO forms, general underwriting considerations to help evaluate related property drone risks, and loss control recommendations to aid in the mitigation of potential exposures.

Wide Range of Drone Exposures

“Drones are mobile in nature, can be of high value, and contain specialized equipment-making them ideally suited for coverage under commercial inland marine insurance,” comments Doug Kahn, director of commercial property product development for ISO. “The new flexible coverage options can help insurers protect businesses that may face a wide range of drone exposures.”

These new options come less than a year after ISO’s commercial drone liability coverage and exclusion options took effect in most ISO jurisdictions for ISO’s Commercial General Liability and Commercial Liability Umbrella/Excess programs. Options are available to address a number of potential exposures with respect to bodily injury, property damage, and other potential liability related to drones, according to ISO.

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Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For nearly two decades, he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at [email protected] or (503) 936-2803.

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