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Commercial UAV Drone Use, Risk Assessment and Insurance

Understanding the Risks, Advantages & Future of Drones

If you are an Ontario company interested in flying drones for business purposes then you will also want to inquire about commercial drone insurance.

Drones are Unmanned Aerial Vehicles (UAVs). As your insurance and risk management provider, Huronia Insurance can help you understand the risks and how to get the best drone insurance protection for your business.

Advantages of Commercial Drones

Drones are becoming increasingly important as a risk management tool for corporations and businesses of all sizes. Drones now help businesses to:

  • Mitigate risks in dangerous circumstances
  • Minimize employee exposure to risks
  • Safely conduct aerial surveillance and inspections
  • Monitor business interests that may be inaccessible otherwise
  • Act as first responders in emergency situations

Drones are also cost efficient, helping companies to save money and time. UAVs not only provide safe, unique low altitude viewing, they are also efficient, inexpensive, and can be equipped with sophisticated data collection and mapping tools.

Drone History and Its Future

By now we are all familiar with “drones” or UAVs as they are also known. GPS technology has taken our traditional vision of the model aircraft and seemingly raced it 50 years into the future!

Drones are not so different from model aircraft and have been around in one form or another for decades. However, in the last 5 years, unmanned aerial vehicles outfitted with attachments, referred to as payloads, have gained a lot of exposure in the press. UAVs can be fixed wing or multi-rotor configurations.

Transport Canada is tasked with managing safety in our national airspace to manage this Drone surge, yet maintain a safe environment for all aircraft. To ensure Drone and Aircraft safety, Transport Canada created a new certification for Remotely Piloted Aircraft, easing entry into commercial operations for Drone Owners and Operators.

Some reports site that unmanned aerial vehicles are effectively, “A New Industry that will help develop 100,000 jobs and an economy of $100 billion in the USA by 2025.”

Similarly, the Canadian Drone industry can anticipate 5,000 jobs and an economy of $5 billion in the same time period. The benefits of Drones will be across other industries with increased safety and efficiencies such as reduced worker injuries, labor costs, overheads, and lower worker safety insurance costs.

Drones costing $5,000 or less, can be equipped with 30x zoom cameras, LIDAR, and NDVI payloads that provide a wealth of data gathered from above. Cameras with the ability to film in 4k provide extraordinary detail. Problems “in the field” can be diagnosed and solutions developed from the safety of the office, without putting any employees at risk.

Drones are used in industries for structure inspections such as cell towers, bridges, and buildings of great heights. Products and structures can be made safer by using drones. Other uses are land development surveys, including site topography. Similarly, retail suppliers & delivery firms (Amazon, UPS) are online to utilize drones for timely, expedient, and cost saving delivery service.

Drone Risks

While the benefits of using commercial drones seem endless, there are drawbacks to any technology. Drone risks are an urgent priority for companies, especially when it comes to risk management in areas of monitoring, inspections and reconnaissance.

Some concerns apply to military applications but also concerns about operator error and drone mishaps need to be considered. Others involve our right to privacy and where that space begins and ends in the community. To learn more about liability, see our post entitled, 3 Types of Liability Insurance.

About Huronia Insurance

Huronia commercial insurance brokers have been servicing corporations and businesses throughout southern Ontario and the Greater Toronto Area for nearly two and a half decades.

If you have never worked with commercial drones before, then adopting UAVs for your business means you will take part in aviation activities for the first time. Make sure you have drone insurance. For more information about commercial drone risk assessment and insurance, contact our Ontario insurance brokers at 1-866-955-8386 or request a Drone Insurance quote online.