Compliance » Regulatory Confusion; Drone Insurance Stalled

Regulatory Confusion; Drone Insurance Stalled

December 1, 2021

Electric wires on poles with drone hovering above them.

An uncertain regulatory framework is hindering the development of needed insurance products in a rapidly expanding drone market, according to a post from Clyde & Co LLP, a UK-based firm noted for expertise in insurance and shipping matters. Drones,  now widely used for medical, police, and catastrophe relief services, are becoming increasingly common in the logistics sector, for delivery of goods, and experimentally at ports and terminals. For the future, the major potential market is said to be last-mile delivery. However, say the writers, with concerns about privacy -along with familiar property, personal injury, and product liability issues -insurance, and especially third-party liability insurance, is a major unresolved issue. In many jurisdictions, including the UK and the EU, it’s compulsory for both recreational and commercial drone operators, but in other jurisdictions, including the U.S., Australia, and New Zealand, drone operators are not currently required to take-out third-party liability insurance, although “such cover is strongly recommended.”

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