Unmanned Aerial Vehicles Drone Insurance Alaska Policy Information
Unmanned Aerial Vehicles Drone Insurance Alaska Due to technical advancement, the commercial application of drones is becoming more accessible and has turned into a multimillion-dollar industry. Unmanned aerial vehicles (UAVs), or drones, have become complex and highly technical, and you simply can't risk damage or loss.
If you're making money with your UAV, or you plan to in the future, insuring it could save you a lot of money down the line if an accident happens. Getting unmanned aerial vehicles drone insurance Alaska may also help you close clients. If anything, you've got peace of mind knowing that you're covered in the unlikely event of an accident.
Unmanned aerial vehicles drone insurance Alaska protects your UAV business from lawsuits with rates as low as $77/mo. Get a fast quote and your certificate of insurance now.
Types Of Unmanned Aerial Vehicles Drone Insurance
As a drone business owner (or someone thinking about opening a small business), your head is probably spinning over the choices when it comes to the types of unmanned aerial vehicles drone insurance Alaska coverage your company needs. UAV drone insurance offers these important coverages to protect you, your employees and your business:
Commercial General Liability Coverage - This unmanned aerial vehicles drone insurance Alaska coverage protects your drone business from third-party liability. This includes property damage and bodily injury caused by the drone, premises liability at locations used in connection with scheduled aircraft, as well as medical expenses.
General liability coverage can help pay medical costs and damages if you are found liable after your client or a member of the AK public sustains bodily or property damage arising from drone accidents. This is especially important, if you are going to be filming in an area where there are windows or other fragile obstacles.
Non-Owned UAV Liability Coverage - Non-owned drone insurance provides coverage to companies or individuals that use or hire UAVs that they do not own and that are operated by third parties. These exposures are primarily contingent liabilities where the user does not employ the operator and is not directly involved with the operation and maintenance of the UAV.
Hull Coverage - Accidents can be expensive. Purchase this unmanned aerial vehicles drone insurance Alaska to cover the theft or damage to the drone and any ground equipment used to operate it, or any electronics or components (payload) carried. Coverage includes:
- Aerial system.
- Remote control.
- Additional equipment (e.g. camera, surveying equipment).
Workers Compensation Insurance - Workers comp is required for any non-owner or partner employees. If any of your employees becomes injured while working for you, or if they become ill due to something that happened at work, you become responsible for them. AK workers comp pays for costly medical care bills.
Business Income Coverage - Covers losses that occur when work is interrupted or your drone business is closed temporarily due to a covered loss. This will pay you a portion of your income for up to 12 months until you are operational again.
Inland Marine - An inland marine policy covers the drone and equipment anywhere in the world (subject to certain excluded territories), including in transit. There is however a policy endorsement that you need to be aware of that imposes some common sense restrictions to make sure that appropriate security measures are in place when you leave the equipment in an unattended vehicle.
Is Drone Insurance Required by Law?
In many parts of the world, commercial drone operators are required to obtain insurance. The FAA does not currently require U.S. operators to be insured to fly a drone for either recreational or non-recreational purposes, but businesses should diligently weigh the potential risks and associated costs when considering unmanned aerial vehicles drone insurance Alaska coverage. Companies you contract with might require UAV insurance as a condition of doing business.
How Much Does Drone Insurance Cost?
The cost to insure your UAV for commercial use can vary pretty dramatically depending on the type of drone, your intended use, you skill level, and the general locations you will be using the drone.
How Much UAV Insurance Coverage Do You Need?
The amount of coverage that you need depends on a number of factors, including:
- Your Business - some industries, such as film, require higher insurance coverage than others as a matter of course.
- Your Customers - if your customers tend to be major corporations, they may have different insurance requirements than small businesses or sole proprietors.
- Your Assets - how much of a loss could you afford out of pocket if you are underinsured?
What Information About Your UAV Business Do You Need To Provide?
- Physical attributes - including the type and weight, takeoff and landing configurations, control redundancy, overhaul/engine life, operational range, communication links.
- Purpose of use - e.g. power line survey, or power pole inspections
- Primary location of use
- Any restrictions that have been imposed
- Details of the pilot(s) and their aeronautical experience
- Whether any risk/safety management systems are in place
- Details of any past claims
AK Unmanned Aerial Vehicles Drone Insurance
Aviation is a litigious environment. AK drone operators may not consider what they are doing to be dangerous yet they could be exposed to legal action if damage is sustained to property or injury to persons. This is why UAV insurance is so crucial. In the aftermath of an accident, drone operators will greatly benefit from the support of a trusted insurance provider.
Alaska Economic Data, Regulations And Limits On Commercial Insurance
If you're an entrepreneur who is thinking about starting a business in Alaska, it's important to have a basic understanding of the state's overall economy before you set up shop. Regardless of how high-quality the products and services you are planning on offering may be, if the location where you open your organization doesn't offer a target market that your products and services will appeal to, chances of success are slim. Furthermore, if a workforce isn't available to support your business, you'll have a hard time staying afloat.
With that said, it's important for business-minded individuals who are thinking about starting a company in Alaska to familiarize themselves with the state's economy; it's also a good idea to have an understanding of the commercial insurance requirements.
Following is an overview of economic trends and commercial insurance policies that business owners are required to carry in The Last Frontier.
Economic Trends For Business Owners In Alaska
According to the Bureau of Labor Statistics, the unemployment rate in Alaska was 6.1% in December of 2019. While that's significantly higher than the national unemployment rate, which was 3.4% in December, 2019, it's lower than it was one year prior, when the rate of unemployment was 6.5% in December of 2018. Though the workforce is growing slower than it is in other states, economists do predict that the rate will continue to decline in the coming years.
Despite Alaska's remoteness and cold climate, it's actually a great start to start a business. According to the Tax Foundation, Alaska is the second most tax-friendly state for business owners in the United States, as there's no individual income tax or state sales tax. Additionally, Alaska has the second highest rate of new business owners, as well as the second highest percentage of available employees (as per 2016).
As in most states, the best spots to start a business in Alaska are the state's biggest cities and the surrounding areas. This includes Anchorage, Juneau, and Fairbanks. Other key areas that are seeing a boost in business development in recent years include Homer, Sitka, Prudhoe Bay, and Ketchikan.
While there are several industries that are experiencing growth in The Last Frontier, specific sectors thrive more than others. Businesses that are related to the following industries are booming in AK:
- Fishing, which is also one of the largest contributors to the state's economy.
- Mining, which provides more than 4,500 jobs in Alaska.
- Petroleum, which is responsible for 34% of jobs in the state. In fact, Prudhoe Bay is North America's largest oil field.
- Tourism is the second largest private sector employer in the state. Each year, millions of people from around the globe travel to Alaska to marvel at the numerous natural wonders that can be found here.
Commercial Insurance Requirements In Alaska
The Alaska Division of Insurance regulates insurance in AK. Alaska mandates very few forms of insurance coverage by law. They enforce worker's compensation.
Alaska requires you to have worker's compensation insurance if you hire even one employee on a regular basis. This includes part-time employees, family members, minors, and immigrant employees. It is not required for independent contractors or domestic employees, though you should check to make sure any contractors you have are true contractors, and not employees.
Alaska also requires all business-owned vehicles to be covered by commercial auto insurance. Other types of business insurance that business owners should carry depend on the specific industry.
Additional Resources For Aviation Insurance
Learn about aircraft and aviation liability insurance - a specialized form insurance that provides coverage for hull losses as well as liability for passenger injuries, environmental damage and third-party damage caused by aircraft accidents.
- Insurance Aviation Terms Glossary
- Aerial Applicators
- Flight Schools
- Hot Air Balloon
- Unmanned Aerial Vehicles (UAV) Drone
Aviation policies often have to be written so that they cover the liability of the owner and the operator relating to bodily injury to passengers or to people who aren't passengers, as well as for property damage.
The policy will cover medical costs, including the loss of income, paid to any passengers who are suffering from permanent or total disability but without proving negligence.
In other words, you can consider aviation insurance a sort of liability insurance for the aviation industry.
Aviation insurance often covers various types of risks such as:
Aircraft Hull Insurance - It covers the aircraft itself in the event of accidental damage, regardless of where it might happen. Spares - The policy will cover any damage or the loss of spare parts relating to the aircraft or the engine if they aren't attached to them.
Passenger Legal Liability Insurance - The policy will cover both the airline and the operator in the event passengers face bodily harm, death, or loss of their baggage while in the custody of the airline or its operator.
Third-Party Legal Liability - The policy will cover the airline and the operator when there is damage to a third-party property on the ground for which they may be held liable.
Cargo Liability Insurance - The policy covers damage or loss to the consignments that are carried by the insured airline. The shipper and consignees will claim against the carrier; that's when the insurer will cover the airline. The policy also covers post office mail that is often shipped via airline operators.
Minimum recommended coverage: Building, Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Communication Equipment Floater, Computers, Contractors’ Equipment, Valuable Papers and Records, General Liability, Employee Benefits, Environmental Impairment, Umbrella, Hired and Non-Owned Auto, Workers Compensation, Aircraft Hull, Aircraft Liability & Hangarkeepers Legal Liability.
Other coverages to consider: Earthquake, Equipment Breakdown, Flood, Cyber Liability, Employment-related Practices, Underground Storage Tank, Business Automobile Liability and Physical Damage and Stop Gap Liability.
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Also find Alaska insurance agents & brokers and learn about Alaska small business insurance requirements for general liability, business property, commercial auto & workers compensation including AK business insurance costs. Call us (907) 531-9001.