5 risks facing drones: Lloyd’s

Some reports suggest there is a thriving community of drone hackers

Media outlets use drones to get stories, 40 percent of Japan’s rice crop is sprayed using drones and Amazon’s hoping for a drone highway so they can deliver their goods more quickly. But there are five major risks facing the nascent sector, Lloyd’s new emerging risk report points out, and insurance policies need to protect against them.

1. Human error is a big consideration in any industry, and drone operators must be properly trained. Lloyd’s also points out insurers may be concerned about “moral hazard,” since operators are physically and perhaps mentally disassociated from risks in the air.

2. Regulation isn’t consistent across international jurisdictions, which makes third-party liability coverage tricky to determine.

3. The drone industry has been growing too quickly for regulators to keep tabs on every UAV. Tracking and geo-fencing technology could help drones stay in their airspace and not interfere with commercial airplanes and firefighting duties.

4. Some reports suggest there is a thriving community of drone hackers, so insurers will have to develop security measures with cyber experts.

5. Many people are concerned about drones breaching their privacy, and professional indemnity insurance can cover the cost of damages awarded to them.

Copyright © 2017 Transcontinental Media G.P.
Transcontinental Media G.P.