Insuring your Drone and operations
In light of Amazons recent news of drone delivery and hobbyists pursuit of flying more UAS (unmanned aircraft systems) vehicles than ever, it's a good idea to review insurance coverage and regulations.
The Law
The Law states you cannot:
Fly an unmanned aircraft beyond line of sight.
Fly within 5 miles of an airport or in the proximity of any manned aircraft unless specifically authorized by the FAA (Federal Aviation Administration.)
It is also against the law to:
Fly near people or stadiums.
Do carless or reckless maneuvers.
Fly anything that weights more than 55 pounds.
Fly for payment or commercial used unless specifically authorized by the FAA.
Guidelines for operators
Operators can be fined if they endanger people's lives or other aircrafts according to the federal law. Users also could be fined $250,000 for failure to register their drone as an unmanned aircraft system for operators who hold a man pilot certificate. The real threat is the impact that those actions have on a person, certificate, suspension or revocation.
When you register your drone, you must state that you're planning to use the drone for recreation or commercial purposes. This also ties in with your insurance. If you fly for recreation the drone and liability are subject to your Homeowners insurance personal property and Liability. Fly for commercial use and the drone activities are better listed on your business owners or general liability policy otherwise it will most likely be excluded. Registration markings must also be visible on the outside of the drone whether used for personal or business.
Registering
If the purposes of your drone flying use is commercial then you must follow F.A.R. (Federal Acquisition Regulations) Part 107 test. Federal law states that any operator must register all aircrafts that weigh more than .55 lbs and less than 55 lb and they must be age 13 or older to register.
With most drones being around $1,000 it makes since to schedule the property on your homeowners to get the deductible risk down. Then again if you do not care about a $1,000 deductible you do not need to schedule. Just let it be part of the personal property coverage and take the risk on yourself.