A business client in California operates a drone photography service. They are purchasing a Commercial General Liability (CGL) policy and are concerned about potential liability if their drone crashes and causes damage to property or injury to individuals. Which of the following statements about CGL coverage for drone operations is most accurate?
- ACoverage for drone operations is only available if the drone is under a certain weight limit.
- BCGL policies cover drone-related property damage but specifically exclude bodily injury claims.
- CDrone operations are typically excluded from a standard CGL policy and require a specific endorsement or separate aviation liability policy.
- DStandard CGL policies automatically include full coverage for drone-related bodily injury and property damage.
Show answer & explanationAnswer & explanation
Correct answer: C. Drone operations are typically excluded from a standard CGL policy and require a specific endorsement or separate aviation liability policy.
Standard Commercial General Liability policies are generally not designed to cover aviation risks, and drones (even small ones) are considered aircraft. Many CGL policies contain an 'Aircraft, Auto or Watercraft' exclusion that would apply to drones, or insurers may add a specific drone exclusion. Therefore, specialized coverage, either through an endorsement or a separate aviation liability policy, is almost always required for drone operations.
Why the other options are wrong
- A. While weight can affect underwriting, it's not the primary determinant of whether a standard CGL includes coverage; the general exclusion of aviation risks is the key.
- B. This is incorrect; typically, both bodily injury and property damage from drone operations would be excluded.
- D. This is incorrect; CGL policies typically exclude aviation risks, including drones.
CGL Drone Exclusion
Standard Commercial General Liability policies typically exclude liability for bodily injury or property damage arising out of the ownership, maintenance, use, or entrustment of aircraft, which generally includes drones.
- Drones are considered aircraft under most liability policies.
- Specific endorsements or separate aviation liability policies are needed for drone coverage.
- Underwriters view drone operation as a specialized, higher-risk activity.
Memory trick: CGL says NO to AIR, AUTO, and WATER risks!