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by: Kyal Smith

Commercial Drones & Emerging Risks

When you think Drone, or UAV (Unmanned Aerial Vehicle), you might be inclined to picture a military spy plane involved with some top secret operation hovering over a great desert, but it’s time to ditch that view because commercial interests have already begun to shape and evolve how we use the technology. Over the next 10 years it is estimated spending will reach almost $90 billion and that by 2020 there will be as many as 30,000 drones being used for business.

Although military applications still dominate the sector, drones are already being used for crop monitoring, border control, assisting emergency services, parcel / medical supply deliveries, wildlife protection, news production / film and entertainment, and research.

With these new applications, come emerging risks. In addition to legal and regulatory issues, there will be complications regarding coverage and liability, which will see brokers and insurers at the forefront of drone technology and its applications. Insurers are hard at work developing specific insurance products for commercial and private drone use — which will tackle safety and privacy concerns.

One thing is certain, drones are here to stay and the insurance industry will be closely linked to this expanding market. For more information regarding Drone technology and the risks it will present, you can speak to a professional insurance advisor at Honan by calling 1800 981 377 or emailing info@honan.com.au