Game of Drones: Insurance industry develops new schemes to support the drone business
The British Insurance Brokers’ Association (BIBA) is the UK’s leading general insurance intermediary organisation representing the interests of insurance brokers, intermediaries and their customers has teamed up with Tokio Marine Kiln (TMK) a global specialist insurance company with offices in London, Leeds, Manchester, Birmingham, Ipswich, Paris, Nantes, Bordeaux, Lyon, Colmar, Düsseldorf, Frankfurt, Brussels, Liege, Barcelona, Amsterdam, Milan, Hong Kong, Shanghai, Singapore and Rio de Janeiro to launch a new drone insurance scheme.
The scheme includes coverage for physical loss or damage of up to £100,000 per drone, backed by Lloyds, it is available to brokers and offers ’comprehensive and competitively priced’ coverage for companies operating drones also referred to as Unmanned Aerial Systems (UAS). It is available on an online platform enabling brokers to quote and bind business quickly in real-time at any time. Mike Hallam, head of technical services at BIBA, spoke about the opportunities drones hold for the insurance industry. He said: “Our members and their clients that are drone operators will benefit greatly from competitive premiums and dedicated service levels as well as access to TMK’s Lloyd’s A-rated capacity and expertise in aviation and UAS insurance, backed by an outstanding claims service.”
A breakdown of the scheme:
- Physical loss or damage to UAS up to £100,000 (per UAS) *inclusive of payloads whilst in the air, ground or in transit (includes theft and malicious damage) larger limits available on request
- Third party bodily injury and property damage liability up to £50m per occurrence *inclusive of losses from malicious acts
- Enhanced coverage for invasion of privacy, noise liability, operator’s indemnity, operator’s liability and loss of digital assets (cyber)
TMK’s, aviation underwriter, Robert James, said its offering sets itself apart from the competition. The underwriting service has specialist knowledge in aviation which he said it has adapted to cater for the ‘perils’ facing UAS operators.