Drone Insurance in the UAE
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What is Drone Insurance?
Drones are unmanned aerial vehicles that can be operated without a human pilot. They can be controlled remotely from the ground by an operator or using onboard sensors and software. Advanced drones serve a wide range of applications, including commercial, military, disaster response, and entertainment.
Drone insurance is a specialized type of insurance designed to protect businesses (and drone operators) from loss, damage, and third-party liabilities due to accidents resulting from drone operations. Buying drone insurance mitigates the risk and provides financial protection. It safeguards the investment in costly equipment and helps the business in complying with government regulations. Drone Insurance for commercial use is mandatory in the UAE.
Types of Drone Insurance
Liability Insurance
Drone liability coverage protects businesses against third-party claims arising from bodily injury or property damage due to drone-related accidents. E.g. if a drone crashes into a building or injures a person, drone liability insurance covers the financial loss of damage to the property or the medical expenses to treat the injured person.
Hull Coverage
This insurance covers accidental damage to the drone and compensates the cost of repair, replacement, and loss due to theft. Payload insurance covers the loss or damage to equipment or sensors attached to the drone. This is critical for high-value drones and payloads. Further, insurance providers offer special add-on covers for cyber risks, terror attacks, in-flight protection, and business interruption caused by drone damage or failure.
What Does Drone Insurance Cover?
- Physical loss or damage to the drone and goods carried by the equipment
- Cost of replacement of the drone in the event of any loss or damage
- Loss or damage to the spare parts and accessories of the drone
- Legal claims arising from third parties due to bodily injury or property damage caused by the drone
- Third-party liabilities arising due to privacy breaches, nuisance, and noise disturbance caused by the drone
- Personal accident insurance for any bodily injury suffered by the policyholder while using the drone
What is Not Covered By Drone Insurance?
- Loss or damage due to normal wear and tear of the equipment
- Loss or damage due to poor maintenance or improper handling of the drone
- Loss or damage due to operating the drone in unsuitable climatic conditions
- Loss or damage due to deliberate acts of the drone operator
Drone Insurance Requirements
Commercial drones must register with the GCAA and also obtain a certificate from the Emirates Standard and Metrology Authority (ESMA). This ensures registration with the regulatory authorities and enables security clearance for drone operations.
Drone operations are prohibited in certain no-fly zones (airports, power stations, defence installations, etc.) and residential areas. Businesses must strictly adhere to these restrictions on drone usage to avoid hefty fines and other punitive measures
Drone liability insurance for commercial usage must have a minimum cover of AED 3.67 million for potential damages caused by drone-related activities
Drone operators should regularly participate in training programs organized by the GCAA to stay updated on safety and legal provisions
How to Get Drone Insurance in the UAE?
Visit the official website of Prominent Insurance Brokers. Enter your details in the drone insurance quote form.
Once you provide all the required details in this form, click on the ‘Submit’ button.
One of our executives will soon get in touch with you. You will be guided by our team of expert advisors to buy the best drone insurance in the UAE. You can make the payment online.
You can also click on the Whatsapp icon on this page and chat with our team members. You will be guided step-by-step to buy the policy online.
Factors Affecting the Cost of Drone Insurance
The cost of drone insurance (i.e. premium) in the UAE depends on several factors. The details are as follows:
The type of drone – bigger and more sophisticated drones typically carry higher premiums
The nature of drone operations, i.e. commercial, agricultural, or entertainment
The quantity or the number of drones required for your operations
The estimated flying time for drone-related activities
The places where the drones are intended to be used by the insured person
The number of drone operators to be covered under the insurance policy
Optional add-on covers like personal accident insurance, payload coverage, night flying coverage, etc., also enhance the drone insurance cost.
How to Choose the Right Drone Insurance Provider in the UAE?
Coverage Offered
The policy chosen should cover the specific risks associated with your drone operations. The insurer should also have a wide range of products to cater to diverse requirements
Terms & Conditions
Read the policy document to know the definite exclusions and situations under which insurance coverage shall not be available. A policy with more exclusions and restrictions may not be suitable.
Cost of Drone Insurance
The insurance provider must offer comprehensive coverage at competitive premiums to ensure adequate protection at affordable prices
Value-Added Services
Check whether the insurance provider offers additional benefits such as loyalty discounts, dedicated claims management, and round-the-clock customer service
Insurer’s Reputation
Check the online reviews, ratings, and feedback for the insurance provider. The company should have strong financials, a good product portfolio, superior claims settlement, and an excellent operational track record in the industry.
Benefits of Drone Insurance Coverage
Financial Protection
The policy protects the business against third-party claims for bodily injury or property damage caused by the drone. It also covers the cost of repairs or replacement for the loss or damage of the drone. Some policies also cover legal fees payable to defend the lawsuit.
Legal Compliance
Drone insurance is mandatory for commercial usage in the UAE. The policy helps a business comply with the law and fulfil the regulatory requirements.
Contractual Obligations
Many organizations hiring drone operators require them to have adequate insurance coverage to avoid potential legal/financial liabilities. Hence, drone insurance can help a business secure larger contracts.
Specific Coverage
Drones are used in several sectors, such as agriculture, industry, military, and entertainment. Insurance providers offer specific products to cover the risks associated with your sector.
Business Continuity
Drone insurance mitigates the financial risk of businesses and helps them continue their operations with minimal disruption
Additional Protection
Drone insurance providers offer several add-on covers such as payload coverage, night-flying insurance, in-transit coverage, and non-owner coverage. These optional products provide customized and enhanced coverage for policyholders.
Peace of Mind
Comprehensive insurance coverage eliminates the risk of financial and legal liabilities of a business due to drone-related incidents
Frequently Asked Questions on Drone Insurance
Yes. Drone insurance in the UAE is mandatory if they are used for commercial purposes. This insurance protects the business against third-party liabilities arising due to drone operations.
Yes. There are several insurance providers offering drone insurance for personal use in the UAE. Policyholders can protect themselves against third-party claims and loss or damage to the drone equipment.
Yes. Drone operations can result in accidental injuries and property damage to other people. This can result in legal claims and financial liabilities. Further, advanced drones are expensive to repair or replace if they are lost or damaged during operations. It is also mandatory to insure commercial drones in the UAE.
Yes. Drone Insurance UAE also provides coverage for lost drones. The policy covers the cost of replacement of the drone in the event of any loss or damage.
Yes. Drone insurance is included under aviation insurance policies issued in the UAE.
Yes. It is mandatory to register a drone in the UAE, irrespective of whether it is used for commercial or recreational purposes. You can register the drone with the General Civil Aviation Authority (GCAA). Additional permits from the Ministry of Defense and the local authority are required for commercial drone operations.
The cost of obtaining a drone license in the UAE depends on the type of drone and license you need. It costs around AED 520 to register a drone by government and commercial entities. A professional, hobby, or tourist drone license costs around AED 120. Please note that these charges are subject to change anytime.
Disclaimer: The nations, visa costs, and other information presented here are derived from a variety of sources. This is not a recommendation or promotion from Prominent Insurance Brokers. Before purchasing your tickets or requesting a visa, please confirm the same.