Drone Insurance does not cover every accident or loss involving a drone.

The exclusions depend on the insurer, policy and type of operation.

What exclusions can apply? #

Depending on the policy, cover can be restricted or excluded for matters such as:

• Illegal or unauthorised operations.
• Operations outside disclosed activities.
• Intentional or reckless conduct.
• Ordinary wear and tear.
• Mechanical or electrical breakdown unless specifically insured.
• Gradual deterioration.
• Certain cyber-related events.
• War or terrorism.
• Undisclosed modifications.
• Operations in excluded countries or locations.

This is not a complete list.

What happens if CASA requirements are not followed? #

Operating outside applicable CASA rules or authorisations can create a significant insurance issue.

The insurer may consider whether:

• The drone was registered.
• Required licences or accreditations were held.
• The operator complied with the conditions applying to the flight.
• Required approvals were in place.

A breach of aviation requirements can potentially affect a claim.

Are high-risk operations automatically covered? #

No.

Activities such as:

• Beyond visual line of sight operations.
• Flights near crowds.
• Controlled airspace operations.
• Heavy drones.
• Specialist payloads.
• International operations.

may require specific underwriting or approval.

Why should operations be described accurately? #

The insurer prices and accepts the risk based on how the drone will actually be used.

Material changes to operations should therefore be disclosed rather than assuming the existing policy automatically extends to the new activity.