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The COVID-19 Pandemic: Opportunities and Implications for Captive Insurance

The COVID-19 Pandemic: Opportunities and Implications for Captive Insurance

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The COVID-19 Pandemic: Opportunities and Implications for Captive Insurance explores the challenges presented by today's business and economic upheaval, as well as the hardening insurance market, and what it means for the captive insurance industry.

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Drone Liability: A Future Captive Coverage?

Field trees clouds
February 24, 2015

As commercial use of drones grows, so does interest in whether drone liability and/or property damage will be a future captive coverage. How the government decides to regulate drones is an important step in answering this question.

The Federal Aviation Administration (FAA) recently released a framework of proposed rules for future regulation of unmanned aircraft systems (UAS), commonly known as drones. The FAA proposal restricts the weight of unmanned aircraft to less than 55 pounds.

From an insurance perspective, there are still questions of third-party liability and first-party property damage. For instance, there is no certainty that the owner of a drone that caused property damage could be identified, and it is unclear whether the airspace above a person or residence is public space free from liability of unwarranted search and seizure. The FAA's proposed framework attempts to remedy and clarify these uncertainties.

Some of the current nonrecreational uses for drones are in construction to inspect large building sites, in agriculture to survey and tend large field crops, in law enforcement and in border patrol for surveillance, and in locating and monitoring the spread of forest fires. The city of Boston has even been using drones to track accumulation of snow on roofs during this record snowfall winter.

Recreational use of drones has grown in popularity because of their low cost.

Therefore, the FAA website addresses four categories of UAS use.

Public comments are being solicited for 60 days beyond publication.

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