Drone Users May Lack Coverage In CGL Policies

A recent California court decision highlights the fact that many policyholders who use drones may be unaware they do not have liability coverage for their use under their commercial general liability policies. Experts are recommending they obtain the coverage either through a specific endorsement to their CGL policies or separate coverage from a specialty insurer. Many insurers are denying coverage if policyholders do not have an aviation clause in their policies, said Patti Arthur, of counsel with Anderson & Hughes P.C. in Denver.

Drone operators “who only have a standard market commercial general liability policy should absolutely be worried that they’re going to have the exact same result if they end up with a loss,” said James Van Meter, regional head of aviation programs and product development-North America for Allianz Global Corporate & Specialty SE.