Drone Insurance
Among the many novel legal questions presented by drone use in California is whether and to what extent insurance coverage will apply. Homeowner insurance may cover the amateur use so long as no commercial activity is involved.
Numerous companies advertise coverage for commercial drone use. But the Federal Aviation Administration (FAA) current position is that all commercial drone use is subject to its jurisdiction. A drone operator that does not have a formal grant of authority from the FAA—to date the FAA has granted only 11 of what are called “Section 333 Exemptions” to commercial drone operators—is acting in the gray area between what is unauthorized and what is illegal. Obtaining insurance under such circumstances may be expensive, and a commercial drone operator who does not have a Section 333 Exemption may not have complete comfort that insurance recovery will be available when needed.