![]() ![]() Aircraft exclusions may also preclude coverage for “bodily injury or property damage arising out of the ownership, maintenance, occupancy, operation, use, or unloading or unloading of an aircraft owned or operated by or rented or loaned to you,” Homeowners Policy, Form MPL 8180-000 and “bodily injury or property damage arising out of (1) the operation, maintenance, use, loading or unloading of an aircraft the entrustment by an “insured” of an aircraft to any person or (3) vicarious liability, whether or not statutorily imposed, for the actions of a child or minor using an aircraft,” Homeowners Policy, Form FMHO 943 (ed. Generally, the aircraft exclusion precludes coverage for “bodily injury or property damage arising out of the operation, maintenance, use, loading or unloading of… an aircraft.” Homeowners Policy, Form FP-7955. Those familiar with homeowners insurance policies are aware of the terms commonly found in insuring agreements, exclusions, exceptions, and conditions. ![]() This article will take this insurance coverage analysis step by step, point out issues that will be encountered and potentially raised by plaintiffs’ lawyers, highlight the critical information to obtain during the claims-handling process before making a coverage determination, and present recommendations to attorneys counseling insurers and insurers regarding this emerging area of insurance and aviation law. Thus, it is necessary to determine which coverage obligations an insurer owes when a claim is tendered after a UAS causes bodily injury or property damage. It is also possible that a claimant may seek coverage under a commercial general liability (CGL) policy if a UAS was operated by or on behalf of a business. You and your clients should anticipate that individuals who sustain bodily injury or property damage caused by a UAS will turn to an operator’s homeowners insurance for coverage. Those who operate UAS that malfunction, run out of battery life, or encounter icing or strong winds at high altitude may cause property damage or serious bodily injury to unsuspecting individuals on the ground below. Instances of such failures are evident from a simple YouTube search, such as “drone fail” or “drone crash,” which will yield numerous results of videos of UAS mishaps. The problem, however, is that often these UAS operators are inexperienced, unfamiliar with Federal Aviation Administration (FAA) regulations and airspace, and do not take proper care to ensure that the aircraft functions properly. It is commonplace for such individuals to attach a camera to their freshly unboxed UAS and take to the skies. However, apart from commercial uses, many individuals operate UAS simply for recreation. Undoubtedly, there are many beneficial uses for UAS. The prevalence of Unmanned Aircraft Systems (UAS) today, commonly referred to as drones, increases the likelihood that the aircraft exclusion in a homeowners insurance policy will become more relevant than ever before. Then, you reach the aircraft exclusion and conclude that it should apply to bar coverage for losses arising out of the operation, maintenance or use of drones because drones are “aircraft.” However, depending on the language of the policy, a coverage determination may need far more analysis. ![]() You read the insurance policy line by line to determine if there is coverage. Naturally, your first thought is whether the homeowners policy covers this claim. You become familiar with the facts and discover that the insured under a homeowners policy is being sued because the insured’s drone caused bodily injury when it fell from the sky. ![]()
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