As heavy-duty drones become more widely used on farmland, the insurance industry is working on catching up. While small scout drones are common, the larger spray drones used to treat crops may pose unanticipated legal and financial requirements.
Standard farm and commercial policies typically carry a hard ceiling, says Eric Greening at Family Insurance Center. Most contain exclusions for any unmanned aircraft weighing over 55 pounds or any drone designed to dispense chemicals. Because of this, larger units are not covered under general equipment riders, Greening continues. Instead, they require specialized aviation policies, like what you’d get for piloted planes.
While general liability for a drone is relatively affordable, ranging from $500 to $1,500 annually, he says, the real cost lies in “chemical liability” to cover overspray and drift. These premiums can jump to $3,500 per drone. Despite the cost, the utility is proving undeniable, especially when weather prevents traditional machinery from entering the field.
“That’s been the biggest area where I think these things have become more and more useful is when it’s too wet to get a tractor in the field, you can send one of these out and take care of it,” Greening tells Mid-West Farm Report.
However, the regulatory environment can pose a challenge. Insurance carriers are implementing strict safeguards to protect themselves from the risks of unlicensed operation. If an operator’s FAA certification lapses, the insurance protection essentially vanishes instantly.
“What we’ve seen with the insurance policies for the drones is that there is very specific language in there that if you do not meet all requirements by the FAA… then the policy is null and void,” Greening explains.
