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Liability Insurance

Discussion in 'General Discussion' started by Centralcoast, Feb 4, 2014.

  1. Centralcoast

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    I've been flying the Phantom since January of 2013, and recently obtained a second Phantom. I've had a few accidents, including cutting my finger on one of the spinning blades. After this, I put a blade guard on my second Phantom not so much to protect the props, but to protect somebody else from getting cut. While the Phantom is as safe as I can make it, including a check sheet I use to make sure everything is working properly, still in the back of my mind is the worst case scenario. The Phantom loses an engine while flying and drops on somebody's head, or hits somebody's car windshield causing an accident. Whoever is flying is liable, and because of this I recently took out $500k worth of liability insurance.

    Most liability insurance policies I found had an FAA exemption clause in their policies. While I fly within the amateur guidelines set forth by the FAA (they don't have commercial licensing yet), I didn't want to be exposed to an accidental violation of FAA regulations resulting in a liability suit not covered by my policy.

    While this special insurance for the Phantom is as expensive as the Phantom itself, I can now fly without having the concerns of a liability law suit in the back of my mind.

    I was wondering how other Phantom Pilots on this forum are handling the liability issue that is associated with flying?
     
  2. Buk

    Buk

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    Do you mind sharing where you purchased your policy? If not, from whom?
     
  3. FlyingFanta

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    A copy of the contract would be awesome too.
     
  4. Centralcoast

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    After checking a few local insurance brokers for the type of liability insurance I was looking for, I checked Google and came across Costello Insurance Associates, Inc. out of Tempe, Arizona. The owner was a pilot as well as an avionics insurance broker. About five months ago, he began carrying a type of insurance specifically designed for the UAV pilot. While it was a bit more expensive than I was expecting, the policy carried no FAA exclusions while the other liability policies I had looked into all had exclusions.

    I'm not recommending this insurance company one way or the other, but if you are interested in talking further about this type of insurance for drones, call 1-800-528-6483 and ask for Pat Costello. He's the specialist in this type of insurance.
     
  5. Buk

    Buk

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    Thanks for the information. Currently, I just have the AMA insurance.
     
  6. iResq

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    I use my homeowners.

    Sent from my Nexus 7 using Tapatalk
     
  7. Buk

    Buk

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    I should check homeowners. Wonder if their's liability coverage for dropping a Phantom on someone/something.
     
  8. iResq

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    Mine covers it as long as it's not a business exposure.
     
  9. jtw29

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    Join the Academy of Model Aeronautics, AMA. It gives you $2.5 Million General Liability Insurance for $58/year. Can't beat it.

    http://www.modelaircraft.org/membership ... rview.aspx

    As long as you are following their safety code, you are covered.

    J

    P.S. if you decide to join the AMA because of my post, please PM me so I can give you my AMA number to put on your application as the person that referred you to the AMA.
     
  10. iResq

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    Please note that the AMA policy is excess not primary. For a few more dollars you can get a personal umbrella policy which will give you a lot more coverage then just your bird.

    Sent from my Nexus 7 using Tapatalk
     
  11. jtw29

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    That's correct. An overview of the benefits can be found here:
    http://www.modelaircraft.org/files/500-a.pdf

    Is this through the AMA as well? I haven't heard of the option to add to the policy. How do you this? Or are you talking about a policy through a different entity? Thanks for the additional info.

    J
     
  12. iResq

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    Not the AMA, you're homeowners/tenants carrier.

    Sent from my Nexus 7 using Tapatalk
     
  13. ududidj

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    On the Costello page, it states specifically on the application:

    "Sorry, we are unable to assist if the aircraft to be insured is a radio controlled model aircraft."

    Seems the Phantom would fall under this category and not be eligible for coverage?
     
  14. PitStop

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    I have a membership to AMA ($58/yr) as well as a personal umbrella policy ($250 /yr). Hopefully one of the two will cover me in the event of an liable accident!
     
  15. Quadro

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    I joined the AMA online in the middle of the night recently, when I awoke to the realization that in a worse case scenario this new hobby of mine could have some serious liability consequences. Especially in the event of a flyaway.

    My understanding of the AMA policy is that there's a $250 deductible if you do NOT have an underlying liability policy. If there is an underlying policy such as a Homeowners policy, then the AMA insurance covers any "excess" beyond the limits of the underlying coverage.

    At least that's the way I interpreted it.

    In addition to following the AMA code of conduct (no problem as far as I could tell, but it is a little complicated), there is a requirement that your contact info and/or AMA membership number must be attached to the model aircraft.

    Anyway, at $58 a year, for me joining was a no-brainer.
     
  16. FlyingFanta

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    Can you post a copy of the contract?
     
  17. Centralcoast

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    I'm a member of AMA as well and the liability insurance that comes with the $58 membership is definitely a no brainier. I'll need to check the policy, but I'm not sure if you are covered in a fly away. A fly away where I live, could end up at an airport.