{"id":3336,"date":"2016-05-24T13:19:56","date_gmt":"2016-05-24T13:19:56","guid":{"rendered":"http:\/\/minutes.machine.market\/?p=3336"},"modified":"2016-05-24T13:19:56","modified_gmt":"2016-05-24T13:19:56","slug":"drones-in-construction-can-help-but-potentially-hurt-your-company","status":"publish","type":"post","link":"https:\/\/machine.market\/blog\/drones-in-construction-can-help-but-potentially-hurt-your-company\/","title":{"rendered":"Drone use in construction, from an insurers perspective."},"content":{"rendered":"

Biz Journals<\/a> reports that\u2019s the question facing construction contractors these days, especially as the cost of drone hardware and software falls and the advantages of using unmanned aerial systems (UAS) on construction sites become more apparent.<\/p>\n

Drones can be used for surveying and map-building, monitoring job sites for safe practices, inspecting structures, showing construction progress to clients and keeping projects on track and on budget.<\/p>\n

Drones are being used to coordinate production on large construction sites, and even monitor individual construction workers.<\/p>\n

The Federal Aviation Administration estimates that about 30,000 drones will be used for all types of businesses by 2020. The MIT (Massachusetts Institute of Technology) Technology Review recently detailed how drones are being used on the construction site of the new Sacramento Kings stadium in downtown Sacramento:<\/p>\n

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\u201cOnce per day, several drones automatically patrol the Sacramento work site, collecting video footage. That footage is then converted into a three-dimensional picture of the site, which is fed into software that compares it to computerized architectural plans as well as a the construction work plan showing when each element should be finished. The software can show managers how the project is progressing, and can automatically highlight parts that may be falling behind schedule.\u201d<\/p>\n<\/blockquote>\n

Although drone technology can have positive impacts on your projects, the use of drones also can expose your company and employees to risk and liability. The proliferation of drones in recent years has raised several legal questions, and your insurance policy may not adequately protect you.<\/p>\n

You can\u2019t assume, for example, that your commercial general liability policy covers drone operations. Carriers are creating policies to cover drone exposures, but consistent, formalized policy enhancements are still lacking.<\/p>\n

Two red flags for the insurance industry so far are personal injury and invasion of privacy, according to a legal report on\u00a0RiskandInsurance.com<\/a>. You will need to supply the carrier information on the drone\u2019s function and intent, takeoff and landing locations, and flying altitude, among other things.<\/p>\n

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\u201cWith the ability to collect massive amounts of unsolicited data, [drones] present an enormous threat to individual privacy and a significant challenge for insurance carriers. In drafting policies, it is crucial for carriers to know how such information will be used,\u201d RiskandInsurance.com reported.<\/p>\n

Generally speaking, contractors should have liability, personal injury, invasion of privacy, property and workers\u2019 compensation coverage related to drone usage on construction sites.<\/p>\n

A few ways to minimize drone liability:<\/p>\n

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  • Make sure that your company has FAA authorization to operate the UAS for commercial or business purposes.<\/li>\n
  • Define the intent or purpose and flight paths of the drone flights.<\/li>\n
  • Pick the best pilot and identify everyone who is participating, what their roles are and the qualifications needed for each role.<\/li>\n<\/ul>\n

    Drones are providing unique benefits for construction companies, but the burgeoning technology also creates evolving legal challenges. Contractors must be diligent in working with insurance and legal providers to protect their drone operations in a rapidly changing environment.<\/p>\n

    Scott Carlson is the assistant vice president at CCIG, a Greenwood Village-based independent insurance broker that delivers insurance solutions, benefits and risk management to more than 10,000 companies and individuals globally.<\/em><\/p>\n