Drone on Drones: FAA Approves Use of Drones By Insurance Companies

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floodThe FAA has granted insurer American International Group approval to use drones to conduct inspections in domestic airspace, AIG announced today. AIG intends to use the drones to survey disaster areas, hoping this will lead to faster handling of claims, risk assessment and payments. Drone use will also provide access to areas that may be dangerous or inaccessible to human inspectors. AIG joins State Farm and USAA as insurers with permission to utilize the technology. This may change the way insurance claims are processed drastically, simplifying the process by which public agencies can settle their claims.

All three companies intend to explore the use of drones in assessing roof damage, and in responding to natural disasters. The FAA approval allows the insurers to fly drones during the day, below 400 feet, and within line-of-sight of a trained pilot and air crew. The companies must also report all flights to the FAA prior to takeoff. These approvals join a growing number the FAA is allowing while its draft regulations receive public comment. Currently, there are 99 waivers for commercial drone use, in addition to some other companies that are utilizing the technology without approval. While some insurance companies have decided to impose their own safety rules for drone use instead of waiting on the FAA, the majority of the industry appears to prefer waiting for the government to lay out the rules. This is in addition to multiple companies offering drone insurance to protect pilots in the event of an accident involving the unmanned aerial vehicles.

These approvals show the FAA’s willingness to slowly expand the approved uses of drones in domestic airspace, as well as providing an indication of another difficult task made easier with the technology. For public agencies, insurance drones may mean a reduction in resources spent trying to receive payments on a claim, in addition to the possible benefits of the pictures taken by these drones in assessing construction costs when the time comes to rebuild.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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