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An innovative business servicing the tourism industry with a fleet of drones delivering a spectacular light show event needed unique insurance to fly. The broker expertise in our BMG Aviation arm provided a multi-cover aviation insurance solution to protect the business's 600 drones in the air and in storage.

The drones are the stars of a 20 minute light show spectacular and take centre stage for close to 300 nights a year, weather permitting.

When the business operators sought insurance cover for the drones they discovered that most insurers couldn't provide cover at the scale required, due to the high value of the combined fleet, and concern about the significant value of the drone fleet involved, as well as potential risk of injury to spectators.

Gallagher provided access to exclusive overseas insurer cover for aerial assets

With a performance deadline looming when they approached the Gallagher BMG Aviation team, the operators were relieved that we were able to help them access insurance against material damage and their operational liability risk. This was due to an exclusive arrangement between our aviation specialist business and Lloyd's of London insurers for unmanned aerial vehicles (UAVs).

Planning and confirming the business's drone show operation had appropriate risk management measures in place was key to this broker advised solution, and comprised:

  • programming of smart technology enabling the drones to move independently without colliding with each other while lighting up in sequence to create the light show
  • distancing of spectators from the drone performance area
  • a 4 metre high fence that creates a boundary around the area where the show is performed and staffed with security personnel and monitored by cameras.

Prompt response and timely communications meant our team was able to provide the drone business with several quotes for different liability amounts to consider ahead of their deadline.

The policies are contingent on legal operation of the drones in line with Civil Aviation Safety Authority (CASA) regulations for commercial use of UVAs. CASA is the regulator for aircraft operation and ongoing compliance is an operational requirement for all businesses in this space.

How Gallagher can help with insurance cover for commercial drones

Gallagher can help with insurance cover that provides for drone operators' needs, as well as all-important aviation cover, by accessing coverage arrangements that our competitors cannot. Our advice is based on our aviation specialists' technical expertise and practical knowledge of the risks you face in the air and on the ground.

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Gallagher provides insurance, risk management and benefits consulting services for clients in response to both known and unknown risk exposures. When providing analysis and recommendations regarding potential insurance coverage, potential claims and/or operational strategy in response to national emergencies (including health crises), we do so from an insurance and/or risk management perspective, and offer broad information about risk mitigation, loss control strategy and potential claim exposures. We have prepared this commentary and other news alerts for general information purposes only and the material is not intended to be, nor should it be interpreted as, legal or client-specific risk management advice. General insurance descriptions contained herein do not include complete insurance policy definitions, terms and/or conditions, and should not be relied on for coverage interpretation. The information may not include current governmental or insurance developments, is provided without knowledge of the individual recipient's industry or specific business or coverage circumstances, and in no way reflects or promises to provide insurance coverage outcomes that only insurance carriers' control.

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