I was testing a drone delivery system. The release mechanism triggered early. A 5lb package dropped 100 feet onto a parked Tesla. It smashed the glass roof.
Key Takeaways
- “Dropped Objects” Liability: Standard aviation policies cover damage caused by the aircraft or objects falling from it. This is a core coverage.
- “Cargo” Liability: If the package itself was valuable (e.g., medical supplies) and broke, you need “Cargo Legal Liability” to pay the customer for the lost goods.
- Part 135 vs. 107: Delivery operations often fall under stricter FAA Part 135 rules. If you are operating a delivery service under Part 107 without a waiver, the insurer might deny coverage for “Illegal Operations.”
- Payload Weight Limits: Ensure your policy reflects the maximum takeoff weight (MTOW). If you added a 5lb box and exceeded the weight listed on your policy, coverage is void.
The “Why” (The Trap): “Operations” Definition
If your insurance application said: “Usage: Photography.”
And you are doing: “Usage: Cargo Delivery.”
You have Materially Misrepresented the risk.
Delivery is higher risk. The insurer will deny the claim because you lied about what you were doing.
The Investigation: “I Called Them”
I checked delivery coverage.
1. Standard SkyWatch Policy
- Usage: “Photography/Videography.”
- Scenario: Dropped box.
- Result: Potential Denial for “Change in Operations.”
2. Commercial UAS (Global Aerospace)
- Usage: Defined as “Industrial/Payload.”
- Result: Covered. The policy anticipates dropping things (like sensors or crop dusting).
Comparison Table: Delivery Risks
| Damage | Standard Photo Policy | Cargo/Industrial Policy |
| Car Roof (Tesla) | Maybe (Risk of denial) | Covered |
| The Package Contents | Denied | Covered (Cargo Liab) |
| The Drone | Hull Coverage | Hull Coverage |
Step-by-Step Action Plan
- Update Your Usage: Call your broker. Tell them: “I am conducting drop tests/delivery.” Pay the extra premium.
- Check Part 107.145: Operations over moving vehicles are restricted. Ensure you were compliant (over a parked car in a restricted access area) to avoid the “Illegal Acts” exclusion.
- Secure the Mechanism: Use a failsafe release.
- File Liability Claim: This is a standard Property Damage claim.
FAQ
Q: What if the package hits a person?
A: That is Bodily Injury. Limits need to be high ($5M+) for delivery ops.
Q: Is the winch covered?
A: Yes, if listed as “Attached Equipment” in the Hull value.
[IMAGE: Diagram of a drone with a payload release mechanism, showing the “Drop Zone” liability area.]