Page 9 - AO 1st Qt 2017 CL

Learning the exposures
Here are poten al exposures from drones on construc on sites, based on the insurance industry’s claims experience to date:
• Third-party bodily injury and property damage -
Example: A drone injures a worker at a job site or damages a piece of construc on equipment.
• Viola on of another’s rights - Example: A drone trespasses on somebody’s property without permission.
• Cyber - Example: A construc on site’s neighbor is videotaped without permission, and the images are posted on the internet.
• Contractual liability - Example: A contractor is named in a suit led by a pedestrian who was injured by a drone operated by a vendor hired to survey the job site. The vendor’s contract transferred liability to the contractor.
• First-party - Example: A contractor totals its drone, equipped with a $20,000 infrared camera.
• Product liability - Example: A construc on company makes modi ca ons on a drone and later sells it to another company. While ying the drone, the buyer loses control, injuries a pedestrian, and claims it was the special modi ca on that caused the crash.
Some of these scenarios are more likely than others, but the list highlights the range of poten al exposures a company faces when opera ng a drone.