This insurance does not apply to: 

e. Aircraft, Motor Vehicle, Motorized Bicycle Or Tricycle 

(1) Unmanned Aircraft 

"Bodily injury" or "property damage": 

(a) Arising out of the ownership, maintenance, use or entrustment to others of any aircraft that is an "unmanned aircraft". Use includes operation and "loading or unloading"; or 

(b) Giving rise to vicarious liability, whether or not imposed by law, for the actions of a child or minor involving any aircraft that is an "unmanned aircraft". 

This Paragraph e.(1) applies even if the claims against any "insured" allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by that "insured", if the "occurrence" which caused the "bodily injury" or "property damage" involved the ownership, maintenance, use or entrustment to others of any aircraft that is an "unmanned aircraft". 

If shown as applicable in Section A. of the Schedule, this Paragraph e.(1) does not apply to "unmanned aircraft" described in Section A. of the Schedule, but only with respect to the operation(s) or project(s) described in Section A. of the Schedule. 

Analysis

The policy first replaces the exclusion for bodily injury or property damage from aircraft, motor vehicles, or motorized bicycles or tricycles with language that also excludes coverage for bodily injury or property damage arising from the ownership, use, maintenance, or entrustment to others of any “unmanned aircraft”. Use includes “loading or unloading”. Also excluded is injury or damage that gives rise to vicarious liability for the actions of a child or minor involving any “unmanned aircraft”, whether or not the vicarious liability is imposed by law.

The exclusion applies even if the claims allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by the “insured”, if the “occurrence” causing injury or damage involved the ownership, maintenance, use, or ownership of an “unmanned aircraft”. So if an insured hires someone who is unqualified and not trained to fly an unmanned aircraft and that person flies an unmanned aircraft into another person causing injury, there is no coverage.

However, the form immediately gives coverage back for any “unmanned aircraft” listed in the schedule with respect to the operations or projects listed in the schedule. This endorsement allows the insured to provide coverage for certain craft being used for specific purposes. As long as the craft and the projects being worked on are scheduled, coverage is provided. If an insured uses a drone to survey crops during the summer and the drone is appropriately scheduled, coverage would be provided.

(2) Aircraft (Other Than Unmanned Aircraft), Motor Vehicle, Motorized Bicycle Or Tricycle 

 "Bodily injury" or "property damage": 

(a) Arising out of the ownership, maintenance, use or entrustment to others of any aircraft (other than "unmanned aircraft"), "motor vehicle", motorized bicycle or tricycle owned or operated by or rented or loaned to any "insured". Use includes operation and "loading or unloading"; or 

(b) Giving rise to vicarious liability, whether or not imposed by law, for the actions of a child or minor involving any aircraft (other than "unmanned aircraft"), "motor vehicle", motorized bicycle or tricycle. 

This Paragraph e.(2) applies even if the claims against any "insured" allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by that "insured", if the "occurrence" which caused the "bodily injury" or "property damage" involved the ownership, maintenance, use or entrustment to others of any aircraft (other than "unmanned aircraft"), "motor vehicle", motorized bicycle or tricycle that is owned or operated by or rented or loaned to any "insured". 

This Paragraph e.(2) does not apply to:

(i) "Bodily injury" to a "residence employee" caused by an aircraft (other than an "unmanned aircraft"), provided the "bodily injury" occurs while the "residence employee" is not engaged in the operation or maintenance of such aircraft; 

(ii) Parking a "motor vehicle" or motorized bicycle or tricycle on, or on the ways next to, premises you own or rent, provided the "motor vehicle" is not owned by, or rented or loaned to you or the "insured"; 

(iii) A "motor vehicle" not subject to motor vehicle registration: 

i. By reason of its exclusive use as a device for assisting the handicapped; or 

ii. Designed for recreational use off public roads and not owned by any "insured"; or 

(iv) "Bodily injury" or "property damage" arising out of: 

i. The operation of machinery or equipment that is attached to, or part of, a land vehicle that would qualify definition of under the "mobile equipment" if it were not subject to a compulsory or financial responsibility law or other motor vehicle insurance law where it is licensed or principally garaged; or 

ii. The operation of any of the machinery or equipment listed in Paragraph f.(2) or f.(3) of the definition of "mobile equipment" (Section IV). 

Analysis

The next exclusion is similar - coverage is excluded for any aircraft other than an unmanned aircraft, and any motor vehicle, motorized bicycle or tricycle, if the vehicle is owned, operated by, rented, or loaned to any “insured”; use includes “loading and unloading”. The exclusion is clarifying the exclusions for vehicles other than unmanned aircraft. Also excluded is any vicarious liability, whether or not imposed by law, for actions of a child or minor using any of the listed vehicles other than “unmanned aircraft”. The exclusion applies even if claims allege negligence or wrongdoing in the hiring, training, supervision or monitoring of others by the insured if the incident involves the ownership, use, maintenance or entrustment to others of the listed vehicle types. So coverage is excluded for all vehicles except “unmanned aircraft”.

Again, there are exceptions. The exclusion does not apply to injury to a “residence employee” as long as the employee is not engaged in the operation or maintenance of an aircraft other than an “unmanned aircraft” and that aircraft caused the injury. So if the “residence employee” is injured while unloading luggage from the plane, coverage would apply.

Another exception is for parking a “motor vehicle” or motorized bicycle or tricycle on or next to premises owned or rented to the insured, as long as the “motor vehicle” is not owned by, rented or loaned to you or the “insured”. If an insured is receiving delivery of a horse and another horse damaged the delivery vehicle while it was parked in the insured's driveway, that damage would be covered.

The form then explains that a “motor vehicle” is not subject to motor vehicle registration if it is exclusively used to assist the handicapped or if it is designed for recreational use off public roads and is not owned by any “insured”.

The next clause is an exception for injury or damage arising out of the operation of machinery or equipment that is attached to or part of a land vehicle that would fit the definition of “mobile equipment” if it were not subject to financial responsibility or other motor vehicle laws where it is licensed or primarily garaged.

The definition of “mobile equipment” appears in the FL 00 20. “Mobile equipment” includes such items as bulldozers, forklifts, tractors designed for use off public roads; other farm machinery designed for use off public roads and used for cultivating or harvesting, vehicles on premises the insured owns or rents, vehicles on crawler treads, although snowmobiles are only mobile equipment while on premises, vehicles to provide mobility for power cranes, shovels, loaders, diggers, or drills; road construction or resurfacing equipment, vehicles that provide mobility for air compressors, pumps, and other equipment, vehicles for other than transportation of people or cargo, and others.

Also excepted is equipment in f.(2) or f.(3) of the mobile equipment definition, which includes cherry pickers and similar devices mounted on an auto or truck chassis used to raise or lower workers and air compressors, pumps and generators including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment.

B. The following is added to Paragraph a. of 2. Exclusions under Coverage I – Personal And Advertising Injury Liability: 

This insurance does not apply to: 

a. "Personal injury" or "advertising injury": 

Unmanned Aircraft 

Arising out of the ownership, maintenance, use or entrustment to others of any aircraft that is an "unmanned aircraft". Use includes operation and "loading or unloading". 

This exclusion applies even if the claims against any "insured" allege negligence or other wrongdoing in the supervision, hiring, employment, training or monitoring of others by that "insured", if the offense which caused the "personal injury" or "advertising injury" involved the ownership, maintenance, use or entrustment to others of any aircraft that is an "unmanned aircraft". 

This exclusion does not apply to: 

(1) The use of another's advertising idea in your "advertisement"; or 

(2) Infringing upon another's copyright, trade dress or slogan in your "advertisement". 

If shown as applicable in Section B. of the Schedule, this exclusion does not apply to "unmanned aircraft" described in Section B. of the Schedule, but only with respect to the operation(s) or project(s) described in Section B. of the Schedule.

Analysis

The next exclusion is for personal or advertising injury arising out of any aircraft that is an “unmanned aircraft”. Again, use includes any loading or unloading of the craft. The same parameters apply. Even if the claims allege negligence or wrongdoing in the hiring, training, supervision or monitoring or others by the insured, if the offense is caused by the ownership, maintenance, use or entrustment of an “unmanned aircraft”, coverage is excluded.

Once again, exceptions to the exclusion are immediately presented. The exclusion does not apply to the use of another’s advertising idea in the insured’s advertisement, or infringement upon another’s copyright, trade dress or slogan in the insured’s advertisement.

Schedule B allows the insured to identify certain unmanned aircraft and the projects they are working on and eliminate the exclusion with respect to the scheduled craft and projects.

C. If an Unmanned Aircraft Liability Aggregate Limit is shown in the Schedule, the following provisions are added to Section II – Limits Of Insurance: 

Subject to Paragraph 2. or 3. of Section II – Limits Of Insurance, whichever applies, the Unmanned Aircraft Liability Aggregate Limit shown in the Schedule is the most we will pay for the sum of: 

1. Damages under Coverage H; 

2. Damages under Coverage I; and 

3. Medical expenses under Coverage J; 

because of all "bodily injury", "property damage" and "personal injury" or "advertising injury" arising out of the ownership, maintenance, use or entrustment to others of any aircraft that is an "unmanned aircraft". 

D. The following definition is added to Section IV – Definitions: 

"Unmanned aircraft" means an aircraft that is not: 

1. Designed; 

2. Manufactured; or 

3. Modified after manufacture; to be controlled directly by a person from within or on the aircraft. 

Analysis

An aggregate limit may be scheduled onto the policy. If an aggregate limit is selected, then the limit applies to Coverage H Bodily Injury and Property Damage Liability, Coverage I Personal and Advertising Injury Liability, and Coverage J Medical Expenses. Therefore the aggregate limit is the most that will be paid for any bodily injury, property damage, personal injury or advertising injury arising out of the ownership, maintenance, use or entrustment to others of any unmanned aircraft.

One definition is added to the policy, that of “unmanned aircraft”. “Unmanned aircraft” is defined as any aircraft that is not designed, manufactured, or modified after manufacture to be controlled directly by a person from within or on the aircraft. This therefore excludes any aircraft capable of being flown with a pilot inside or riding on the aircraft.

Includes copyrighted material of Insurance Services Office, Inc., with its permission.