Boom in drones triggers insurance liability coverage requirements

The number of businesses using drones is growing so fastit's forcing some insurance companies to offer specific coverage.

It's becoming an emerging issue within the insurance industry right across the country, accordingtoAmanda Dean,the Atlantic vice president ofthe Insurance Bureau of Canada.

"The need is out there and folks are using these drones for business purposes," she said.

"Liability arising from drones and drone usage for commercial purposes would generally not be covered in a typical commercial policybusiness insurance coverage, asthey would fall within the aviation exclusion of a general liability policy."

• Drone regulations coming, says Transport Canada
• Doc Zone: The Age of the Drone
• Drones get more popular, and the rules are getting stricter

One company that does offercoverage to small and medium-sized businesses is Intact Insurance. It can add "unmanned air vehiclecoverage" to both property and liability insurance.

"The number of businesses using drones is increasing due to improving technology, lower price points and expanded uses within commercial operations," the company said in anemailto CBC News.

The drone policy would protect a company against damage done by, or to its drone.

Dean saidacompany that offers drone insurance through a commercial policy makes it more accessible for businesses.

'Is it worthwhile'

But that kind of insurance policy might not be all that helpful, according to Mark Langille, a partner with flitelab, a Halifax company that uses drones in everything from TV productions to aerial photography for condo developers.

"It's relatively expensive to add basically the equipment side of the insurance and, depending on the system that you're flying, it's really kind of a trade off," Langillesaid.

"Is it worthwhile to have damage insurance or not? Thatside is not mandatory, it's just the liability that you must carry."

Transport Canada currently requires companies using drones have to have $100,000 worth of liability insurance in case of an accident, saidLangille.

Good commercial drones can range in price from $1,000 up to more than $100,000, depending on what they're designed to do, saidLangille.

UltimatelyLangillesaid the explosion in commercial interest in drones may simply be due to the technology's cool factor.That could wear offonce businesses start examining how much paperwork and cost goes into running a drone.

"I think it's really going to come down to theupfrontinvestment but also are you going to make enough use of it to stay proficient and get your money back out of it," saidLangille.