Zurich Canada has announced groundbreaking plans to become the first ever provider of drone insurance coverage offered as a distinct policy from specialist aviation protection.
The property and casualty insurer partnered with Global Aerospace Underwriting Managers Limited to author insurance solutions for companies who use Unmanned Aircraft Systems (UAS) in their businesses processes and operations.
“Zurich’s customers in Canada will be the first ones around the world to have access to this unique insurance solution, thanks to the sophisticated regulatory environment governing the use of drones in Canada,” Urs Uhlmann, CEO of Zurich Global Corporate Canada, said in a statement.
What makes Zurich’s offering so unique is that it was designed to mitigate the full array of drone-related risks, many of which would fall within a protection gap otherwise. Under Canadian regulations, all commercial drone usage is considered an aviation activity, and remains uncovered by most general liability policies in the event of damage or injury.
Zurich’s coverage, however, will provide protection for:
- First-party coverage that protects property, such as theft or damage to the drone or any related equipment
- Third-party liability that covers any physical damage or personal injury caused by drone usage
- Supplemental incidences such as hacking
Zurich Canada foresees wide-scale implementation of this coverage across a host of industries, as many enterprises are now relying on drones to help reach business outcomes.
In fact, the Teal Group estimates that commercial UAS aircrafts will become a $91 billion market within the next ten years.
Potential applications include:
- Oil and gas – inspecting pipelines or other equipment from above, as well as responding to fires and other emergencies
- Communications – aerial surveillance of phone towers and antennas, eliminating the need for dangerous climbing operations
- Security – monitoring crowds and outdoor gatherings
- Agriculture – overseeing crops and distributing water and pesticides where needed
- Media – capturing images for journalistic broadcasting
Zurich hopes organizations will maximize UAS solutions while enjoying the benefits of world-class insurance coverage.
“The market for drones is evolving rapidly and more and more companies and industries are taking advantage of the benefits they offer,” said Uhlmann. “We see great potential for drones to reduce risk for workers by taking over dangerous tasks, among many other applications. Zurich’s drone insurance package will allow our customers to seize that potential.”
