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AIG Launches Drone Insurance Policies

One of the world’s largest insurance companies is getting into the drone insurance business.

AIG Launches Drone Insurance Policies
[Photo: Flickr user Kārlis Dambrāns]

AIG, one of the world’s largest insurers, is rolling out a new set of policies aimed at the growing drone industry. The policy offerings are designed for a newfangled purpose: protecting the operators of unmanned aircraft from liability in case of collision, technical problems, or any other sort of situation that could cause damage either to people or property on the ground.

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AIG’s decision to enter the drone insurance fray takes place as the FAA makes the first steps toward offering a legal framework for commercial use of drone aircraft. This process, which will take place over the next decade, is expected to shake up industries ranging from motion pictures to agriculture to energy.

The AIG drone insurance policies are also an outgrowth of aviation insurance frameworks that have existed for years. A trade group, the Academy of Model Aeronautics, and several smaller insurers offer drone operator insurance as well. Another large insurance company, USAA, is even working on using drones to investigate insurance claims.

AIG’s literature emphasizes that its coverage includes damage from war and terrorism. And, acknowledging an inevitable reality of widespread drone use, AIG offers optional coverage for “spoofing”: when a hacker hijacks your drone remotely.

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