UAS Insurance - a business necessity. Unmanned Aircraft Systems Typical risks and insurance issues for commercial activities.

Transcription

1 UAS Insurance - a business necessity Unmanned Aircraft Systems Typical risks and insurance issues for commercial activities Adam Piper ACII September 2012

2 Agenda Introductions Current commercial activities and enquiries Lloyd s of London a cornerstone of innovation UAS insurance requirement Typical risk issues for; UAS manufacturer, UAS trainer, UAS reseller, UAS operator Summary of Insurer requirements 2

3 Introducing Griffiths & Armour Lloyd s of London Broker Informed ~ Innovative ~ Independent ~ International Full service - General Corporate and Professional Indemnity specialisms UAS solutions innovator UK Assurex Global Partner - Global network of Assurex with over 105 partners Over 20 billion annual premium controlled 3

4 Current commercial activities and enquiries increasing Just talk or real activity? Emerging civilian UAS industry Construction progress, civil engineering surveying, Transmission and pylon inspection, oil pipeline monitoring, disaster management, golf course survey, Wind turbine inspections, maritime surveillance (anti-piracy), Precision Agriculture, general aerial photography, Forestry, emergency services, (Search & Rescue, Fire, Ambulance, Police) and UAS training the commercial uses continue to grow. Real solutions for real needs Sky Watch 4

5 Lloyd s a proven cornerstone of insurance innovation 5

6 The UAS insurance requirement EC Directive No 785/2004 and CAP 722 requirement for third party liability insurance Well established Insurance solutions to meet key requirements for key exposures Third Party Liability Physical Damage Transit War Risks Liabilities and Hull War Ground Risks EL/PL/PI 6

7 Transferring the UAS risk specifically what is available? Primary goal - protect the organisation s balance sheet - meet the primary requirement Third Party Liability insurance For Light UAS - up to 20M Limits including Prod. liability Operators, Manufacturers, Distributors Close the gaps Legal liability to Third Parties / main exclusions Hull - Physical Loss & Damage main exclusions Transit Protect the whole business - other exposures avoiding exclusions EL, PL, Property, Professional Indemnity, D&O, K&R, War Zone, Motor, IP, 7

8 Bespoke cover from the market Lloyds reputation for developing innovative insurance cover and responding your changing requirements Hull War (AVN 48B) What is it and who would benefit most? LSW 617G explained AVN52E explained 8

9 Typical Risk issues for a Manufacturer? Typical goal for manufacturer: develop and sell UAS globally Typical risk questions; Development /Testing risks where tested and by who Third Party Liability / Hull risks? Operational risks - Sales Demonstrations / Travel - Third Party / Hull / GCS / War? Product Liability / sales / territory / revenue?

10 Typical Risk issues for a UAS Trainer? Typical Goal for UAS Trainer: delivery of quality, cost effective training delivery compliant with CAP722 by experienced UAS Operators Typical Risk questions; Where, who by, when? Third Party Liability (TPL) - protect against exposures of Trainers teaching - for what limit? Hull value of equipment whilst flying and stored / appetite for self-insurance? 10

11 Typical Risk issues for a Reseller of UAS equipment? Typical goal for a reseller: To sell UAS units on a national / domestic or global basis using a business to business model Typical risk questions; What is the product liability risk? Third Party Liability risks actual physical bodily injury or property damage? Who will be demonstrating / selling? / where? Physical Damage of the UAS Hull, payload, stock, in use, and whilst being stored or in transit? 11

12 Typical Risk issues for an Operator? Typical goals of an Operator: delivery of full range of services from aerial photography, inspections, mapping and surveys across various industries including construction, mining and energy Typical risk questions; Third Party Liability risks actual physical bodily injury or property damage who doing what, where and for how long - hazardous, countries offshore? What qualifications / accreditations, risk management processes Physical Damage of the UAS Hull, values, payload, spares, stock, in use, and whilst being stored or in transit? New equipment 12

13 In summary - what do Insurers need to know? Physical Damage Hull / equipment details of vehicle/redundancy/ autonomous/ fail safe facility/payload/flight hours/sorties/pilot experience Third Party Liability exposure development / testing, sales, demonstration, products liability, location of sales activities Products Liability OEM, sales units / revenue per unit / year/ country / distribution mechanism Contracts indemnities/waivers / Claims history Developing an Insurance programme for the business Deductibles / limits / Combined Single Limit for Products / Any one accident / agreed values / Exclusions New Application form 13

14 Emerging Risks and challenges Beyond Visual Line Of Sight / GPS Global activities of UAS operators / manufacturers Training UAV pilots, pre-qualification cover, and offering to those trained. Test and evaluation of new products cover Sales demonstrations domestically and globally Outsourcing flying training services Contractual issues business interruption Protecting the data, invasion of privacy/ Cyber exposures 14

15 Contact Adam Piper ACII, CIP, DipM Griffiths and Armour 145 Leadenhall Street London EC3V 4QT Tel: Mob:

16 Disclaimers