Powerlines: “Hit a Powerline and Caused an Outage: Utility Company Lawsuit.”

I was flying FPV. I didn’t see the thin HV line. Zap. Drone exploded. Line snapped. The entire neighborhood went dark for 6 hours. The utility company sent me a bill for $45,000 (repair crew + loss of revenue).

Key Takeaways

  • Consequential Damages: You aren’t just paying for the wire. You are paying for the “Business Interruption” of the utility and potentially the businesses that lost power.
  • Low Limits Kill: A $500,000 liability limit sounds like a lot, until you hit a transformer. Utility claims are massive. You want $1M minimum.
  • “Gross Negligence”: If you were flying recklessly near known lines, the insurer might investigate. But generally, hitting a powerline is a covered “accident.”
  • Fire Risk: A downed line starts fires. If that line ignited a wildfire, your $1M policy is gone in seconds.

The “Why” (The Trap): “Loss of Use”

The utility company charges for:

  1. Physical Damage: The wire and pole ($5,000).
  2. Loss of Use: The revenue they lost while the grid was down ($40,000).

Standard General Liability covers “Loss of Use of Tangible Property that is not physically injured.”
This is a standard covered peril, if your limits are high enough.

The Investigation: “I Called Them”

I asked about utility strikes.

1. SkyWatch

  • Coverage: Covers Property Damage to the utility.
  • Limit: I recommended increasing coverage to $2M or $5M for FPV pilots flying near infrastructure. The cost difference is only $20 per month.

2. Utility Claims Dept

  • Reality: They are aggressive. They will send a bill immediately. They don’t care if you have insurance; they will lien your house if you don’t pay.

Comparison Table: Hitting the Grid

Cost ItemInsurance Covers?Notes
Wire RepairYesStandard Property Damage
Crew OvertimeYesPart of repair cost
Lost Revenue (Grid)YesLoss of Use
Drone ReplacementNoNeed Hull coverage

Step-by-Step Action Plan

  1. Call 911/Utility: Do not try to retrieve your drone. A downed line can kill you even if it looks dead. Report the outage immediately.
  2. Do Not Admit Fault (Publicly): Report to your insurer: “My aircraft made contact with a line.” Let them argue about visibility and negligence.
  3. Secure the Logs: Prove you weren’t dive-bombing.
  4. Notify Insurer of “High Severity” Claim: This needs to be escalated to a senior adjuster immediately to prevent the utility from suing.

FAQ

Q: Is the drone salvageable?
A: Usually fried by the voltage. And retrieving it is trespassing/dangerous. Write it off.

Q: Will this raise my rates?
A: Yes. Hitting a stationary object (powerline) is considered 100% at-fault pilot error.

[IMAGE: Graphic warning: “Stay 50ft Away from Powerlines – High Voltage Arc Risk.”]

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