COVID-19 is changing everything and a new report by one of the nation’s leading drone insurance brokers is highlighting the COVID-19 effect on drone insurance rates.One of the most prominent effects of the COVID-19 pandemic is the new term of social distancing and the major effort to keep distance between people, to slow the spread.
Social distancing has been very tough for some people and industries but has had an opposite effect on the drone industry. Drones are remotely controlled and can perform many tasks from a far distance which is the exact type of tool that the world needs when trying to maintain a safe social distance.
As a result of COVID-19, the drone industry is experiencing a windfall and surge in sales worldwide. Drones were already being developed and being used prior to COVID-19 and experiencing record growth. COVID-19 has accelerated this trend immensely and pushed the industry to new heights. Of course, the safety net and stability that powers commercial drone innovation is the drone insurance industry.
Without insurance, the added liability risk and exposure of a flying machine with 4 fast spinning rotors would cripple any innovation as soon as the first few lawsuits were filed. Further, new and innovative commercial drones are increasingly costly with newer and advanced equipment like thermal imaging cameras, mechanisms for payload and delivery and even someday, passenger transportation drones. The drone insurance industry provides hull damage coverage as well, which is meant to repair or replace these higher priced drones in the event of loss or damage. Without this insurance coverage, again after a few drone accidents or crashes, the cost to repair and rebuild would hinder innovation and widespread adoption.
Drone insurancerates which are a key aspect of the drone industry will be impacted by COVID-19 according to this new report. How they will be impacted is not certain until we see the data from the claims reported in the next few months.
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