Benefits And Risks of Using Drones: What Businesses Should Know

Benefits And Risks of Drones: What Businesses Should Know

New hazards and exposures always surface when it comes to technological advances.

In the past couple of decades, the usage of drones (aka unmanned aerial vehicles or unmanned aircraft systems) has increased dramatically throughout the world.

The Federal Aviation Administration has licensed over 200,000 drone operators in the U.S. alone, and the global demand also continues to grow.

Top uses of drones

The number of ways people are using drones – particularly in the commercial sector – is growing rapidly. Top uses now include:

Top concerns of drone usage

With technological advances, new hazards and exposures always come to light, including:

  • Injury to people or damage to property arising from drones that fall from above or crash into buildings or other aircraft
  • Privacy, as virtually all drones are equipped with cameras
  • Cyber liability, as drones capture significant amounts of data that is stored within the drone or beamed to the cloud
  • Financial loss if drone usage causes business interruption

How the insurance industry is addressing these concerns

Both legislation and technological advances have mitigated the risks of operating drones. Specifically:

Manufacturers are incorporating safety features into drones, such as:

  • Geofencing – prevents drones from flying outside a certain designated area or above a certain height
  • Obstacle avoidance systems – help drones avoid collisions with other aircraft
  • Tracking technology – used to monitor a drone’s location

Argo Pro takes a proactive approach to new exposures in the market, identifying new risks while looking to put solutions in place for clients.

Learn more about Argo Pro’s Miscellaneous PROtect.

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