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In recent years, drones have gone from military apparatus to infiltrating almost every type of industry under the sun, including agriculture. Besides being seen as a cool novelty, businesses are starting to realise how these remotely piloted aircrafts can help them save costs, boost operational efficiency, and open up new streams of revenue. Drone technology is getting more advanced by the day as sophisticated sensors allow drones to gather a wealth of data.
The drone economy is set to explode, with Goldman Sachs forecasting a $100 billion market opportunity over the next five years, so at some point your commercial clients might look to you for advice on safeguarding their operations.
Here are 10 interesting ways in which businesses are using drone technology:
Legislation around commercial drones
With all these new opportunities come new risks so those looking to integrate drones into an existing business model should familiarise themselves with relevant legislation. The South African Civil Aviation Authority (SACAA) identifies operational drones as aircraft that have to abide by laws similar to those of manned aircraft. For commercial use especially, there’s strict legislation in place. As soon as you use a drone to earn income – even if you’re just selling footage you captured in your private capacity – you need to follow certain laws.
Here are some of the main ones:
Once the legislation side is understood, drone insurance is the next major consideration.
All about commercial drone insurance
In an environment rich in risk exposure – from human inexperience to theft to technical failings – the cost of the total loss of a drone can be devastating to a business. Insurance for drones is similar to an aircraft insurance policy, with third-party liability highly recommended.
In order to secure commercial drone insurance, business owners first need to decide what kind of cover they require – and how much of it – in line with the market value of their drone. Santam Aviation has developed an insurance product that provides the full spectrum of cover for drone owners and operators within the private and commercial space. Santam is one of the few insurers that are willing to insure this niche area of insurance.
It’s important to remind clients, especially those who operate drones recreationally, that insurance under Santam’s general personal lines offering covers very limited and restricted in-flight cover and would provide for loss of drone aircraft and claims stemming from Public Liability. Umbrella liability and Personal legal liability insurance are excluded.
Santam Aviation Insurance
The Santam Aviation policy offers full and comprehensive cover on the drone whether operated or not. This includes liability cover and comprehensive third party cover on the limit the client elects to take. Commercial or business policyholders should, however, note that the company will not indemnify the insured against liability in respect of the ownership, hire purchase or leasing of any aircraft as this is regulated by the Civil Regulations Act. It is therefore important that drones used in commercial applications are covered under a separate aviation policy which provides greater security against liability claims as a result of drone activities.
The following kinds of cover are available:
Clients requiring cover will need to fill in a detailed questionnaire which asks for the model, make, management system and insured value of the RPAS; its class certificate and intended operating environment and the pilot details with questions about the operator’s pilot licence and total flying hours.
For clients to successfully claim:
Drone enthusiasts should familiarise themselves with the regulations for operating drones in South Africa which were introduced in 2015 by visiting www.safedrone.co.za. If you’d like to know more about aviation insurance, speak to your relationship manager or contact us. For more advice tailored to businesses, visit our blog.
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