The popularity of drones is flourishing on the farm. Three in four U.S. farmers (74 percent) are currently using or considering adopting the technology to assess, monitor, and manage their farm, according to a recent survey by Munich Reinsurance America, Inc., of 269 U.S. farmers. Seventy-six percent (76 percent) of all respondents had concerns related to drone usage: privacy issues (23 percent) topped the list, followed by cyber security concerns over data captured and transferred (20 percent), and potential damage or injury from the drone (17 percent).
“As Federal Aviation Administration regulations open up the skies to the use of commercial drones, we are seeing a growing investment in the technology by farmers focused on precision agriculture or smart farming,” said Jason Dunn, strategic products expert for Munich Reinsurance America. “Whether a farm has less than 100 or more than 5,000 acres, drones can be the eyes and ears for farmers that want to efficiently and cost effectively monitor and manage crops, livestock, and soil conditions. However, farmers may be exposing their business to new risks related to drone usage, and their insurance coverage may not have kept pace with the rapid development and use of this technology.”
Of those who currently use the technology, it was nearly split between farmers who contracted with an outside company to operate their drones (49 percent) and farmers who handled drone usage on their own (51 percent). Eighty-three percent (83 percent) of respondents used drones on their farms either daily or once a week or more. Drones were used for or considered being used for crop monitoring (73 percent), soil and field analysis (46 percent), and health assessment of crops and livestock (43 percent).
“Fortunately, a majority of farmers are talking to their insurance company about their drone usage,” said Mr. Dunn. Sixty-five percent of survey respondents using drones had informed their insurance company; 16 percent said they planned to do so. “Traditional commercial insurance policies don't cover or offer very limited liability protection for drones. Farmers should speak with their agents or brokers to insure that their policy protects against privacy claims as well as bodily injury and property damage incurred as a result of drone usage.”
Munich Re America offers a drone liability endorsement that can be attached to an existing commercial general liability insurance policy purchased through a participating insurance carrier. The endorsement, providing bodily injury and property damage liability and/or personal injury liability coverage for drones under 55 pounds, was designed for small to medium size businesses and farm and agricultural operations in the United States, according to the company.
Learn more: www.munichreamerica.com.

