(a) An individual: your spouse and your employees, if any, but only with respect to their duties as your employees. If you die:

(1) Until your legal representative has been appointed, any person or organization having proper temporary custody of your property is an insured, but only with respect to liability arising out of the maintenance or use of that property; and

(2) Upon their appointment, your legal representative is an insured, but only with respect to duties as such.

That representative will have all your rights and duties under this policy.

(b) A partnership or joint venture: your members or partners and employees, but only with respect to their duties as your members, partners, or employees.

(c) A limited liability company: your members, managers and employees, but only with respect to their duties as your members, managers, or employees.

(d) An organization other than a partnership, joint venture or limited liability company: your stockholders, directors, executive officers and employees, but only with respect to their duties as your stockholders, directors, executive officers, or employees.

(e) A trust: your trustees and employees, but only with respect to their duties as your trustees or employees.

Analysis:

The named insured is the only person covered to operate the drone. The insured must be a resident of the United States.

Regarding liability, individuals, including spouses and employees are insureds but only with regards to their duties as employees. Upon the death of the insured, any person having temporary custody of the drone is considered an insured but only regarding use or maintenance of the drone until a legal representative is appointed. Once appointed, the legal representative is an insured, but again only in so far as their duties as legal representative apply.

Partnerships, joint ventures, and limited liability companies - their members, partners, employees, managers are considered insured to the extent of their duties. Likewise any organization other than a partnership, joint venture or limited liability company - the stockholders, directors, executive officers and employees are insured but only with respect to their duties as such. Trusts are handled the same way.

Acceptable additional insureds may be added at no additional cost. Examples of acceptable and unacceptable additional insureds are listed on the company’s portal. Adding additional insureds is done directly through the policy purchase phase, and they can be edited at any time throughout the coverage period.

SECTION IV - LIMITS OF INSURANCE

(a) The Limits of Insurance shown in the Declarations or Aircraft Schedule(s) made part of this policy and the rules below fix the most we will pay regardless of the number of:

(1) Insureds;

(2) Claims made or suits brought; or

(3) Persons or organizations making claims or bringing suits.

(b) The Each Occurrence Limit is the most we will pay for damages under Coverage A, because of all bodily injury and property damage arising out of any one occurrence.

(c) If any aggregate limits of insurance and aggregate deductibles are shown in this policy, they apply separately to each consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the policy period shown in the Declarations, unless the policy period is extended after issuance for an additional period of less than 12 months. In that case the additional period will be deemed part of the last preceding period for purposes of determining the limit of insurance or deductible. No aggregate limit shall be increased by successive claims or suits or from occurrence to occurrence.

(d) The limits that shall automatically apply to a newly acquired aircraft are the same as those applicable to the first scheduled aircraft of the same make and model shown in the Aircraft Schedule(s).

2. As respects PART 2 - PHYSICAL DAMAGE, the Limits of Insurance shown in the Declarations and Aircraft Schedule(s) and the rules below fix the most we will pay for physical damage to the scheduled aircraft insured under Coverage B:

(a) The most we will pay is the least of the cost to repair the physical damage, the insured value of the scheduled aircraft or the actual cost to replace the scheduled aircraft with an aircraft of the same make and type. However, our obligation to pay for physical damage will be reduced by the applicable deductible, if any, shown in this policy. Upon paying for a total loss, we will have no obligation to pay for further physical damage to such scheduled aircraft.

(b) Any increase in insured value due to modification of the scheduled aircraft is subject to the Maximum Insured Value Limit shown in the Declarations.

Analysis:

The limits section is fairly straightforward. The shown liability limits are the most paid regardless of the number of insureds, claims or suits brought, or persons or organizations bringing such suits or claims. The each occurrence limit is the most paid for damages under Coverage A for injury or damage arising out of any one occurrence.

If aggregate limits or deductibles are shown, they apply separately to each annual period and any remaining policy period of less than 12 months, unless the policy is extended after issuance for an additional period of less than 12 months. In that case, for the purpose of determining the limit or the deductible, the additional period will be deemed part of the last preceding period. The limits will apply automatically to a newly acquired aircraft of the same type of craft already covered in the policy and shown in the schedule.

Liability limits on all policies range from $0.5M to $10M. The limit is an occurrence limit, and there is no liability deductible.

The physical damage limits are similar. The limits shown are the most for damage that occurs to the scheduled aircraft shown in the declarations. The most that is paid is the least of the cost to repair the damage, the insured value of the scheduled aircraft, or the actual cost to repair the aircraft with an aircraft of the same make and type. The deductible is applied to any physical damage loss. If the aircraft is deemed a total loss, there is no obligation to pay for further damage to such an aircraft. Any increase in value due to modifications to the scheduled aircraft is subject to the maximum insured value shown in the declarations.

All policies have the flexibility to modify your certificate of insurance (COI) on the go.

SECTION V – POLICY CONDITIONS

1. Conformity With Law.

If the terms of this policy are in conflict with or inconsistent with the laws of any jurisdiction where this policy is in effect, this policy will conform to those laws.

2. Titles of Paragraphs.

The titles of the various paragraphs of this policy are inserted solely for reference and are not to be deemed in any way to limit or affect the provisions to which they relate.

3. Representations.

By accepting this policy, you agree:

(a) The statements in the Declarations are accurate and complete;

(b) Those statements are based upon representations you made to us; and

(c) We have issued this policy in reliance upon your representations.

4. Premiums.

The first Named Insured shown in the Declarations is responsible for the payment of all premiums and will be the payee for any return premiums we pay.

5. Changes.

This policy contains all the agreements between you and us concerning the insurance afforded. The first Named Insured shown in the Declarations is authorized to make changes in the terms of this policy with our consent. This policy’s terms can be amended or waived only by endorsement issued on our behalf by the Policy Issuing Office shown in the Declarations and made a part of this policy.

6. Cancellation.

(a) The first Named Insured shown in the Declarations may cancel this policy by mailing or delivering to us advance written notice of cancellation.

(b) We may cancel this policy by mailing or delivering to the first Named Insured written notice of cancellation at least:

(1) ten (10) days before the effective date of cancellation if we cancel for nonpayment of premium; or

(2) thirty (30) days before the effective date of cancellation if we cancel for any other reason.

(c) We will mail or deliver our notice to the last mailing addresses known to us for the first Named Insured.

(d) Notice of cancellation will state the effective date of cancellation. The policy period will end on that date.

(e) If this policy is cancelled, we will send the first Named Insured any premium refund due. If we cancel, the refund will be pro rata. If the first Named Insured cancels, the refund may be less than pro rata. The cancellation will be effective even if we have not made or offered a refund.

(f) If notice is mailed, proof of mailing shall be sufficient proof of notice.

7. Transfer of Your Rights and Duties Under This Policy.

Your rights and duties under this policy may not be transferred without our written consent except in the case of the death of an individual Named Insured.

If you die, your rights and duties will be transferred to your legal representative but only while acting within the scope of duties as your legal representative. Until your legal representative is appointed, anyone having lawful temporary custody of your property will have your rights and duties applicable to PART 1 - LIABILITY but only with respect to that property.

8. Bankruptcy.

Bankruptcy or insolvency of the insured or of the insured’s estate will not relieve us of our obligations under this policy.

9. Legal Action Against Us.

No person or organization has a right under this policy to join us as a party or otherwise bring us into a suit asking for damages from an insured or to sue us on this policy unless all of its terms have been fully complied with.

A person or organization may sue us to recover on an agreed settlement or on a final judgment against an insured; but we will not be liable for damages that are not payable under the terms of this policy or that are in excess of the applicable limit of insurance.

An agreed settlement means a settlement and release of liability signed by us, the insured and the claimant or the claimant’s legal representative.

Each of the insurers appoints the Policy Issuing Office shown in the Declarations, as duly authorized agent for service of process. Service of process shall be made upon Policy Issuing Office at the address shown in the Declarations. However, we do not waive our right to commence an action in any court or venue of competent jurisdiction or to seek a transfer to another court or venue as permitted by law.

10. Transfer of Rights of Recovery Against Others to Us.

If the insured has rights to recover all or part of any payment we have made under this policy, those rights are transferred to us. The insured must do nothing after loss to impair them. At our request, the insured will bring suit or transfer those rights to us and help us enforce them.

11. Separation of Insureds.

Except with respect to the limits of insurance and any rights or duties specifically assigned in this policy to the first Named Insured, this insurance applies:

(a) As if each Named Insured were the only Named Insured; and

(b) Separately to each insured against whom claim is made or suit is brought.

Analysis:

The conditions sections is fairly standard, with 20 conditions. A few are unique to this policy. If any policy terms are in conflict with the law, the policy will modify to conform to such laws. The titles of the paragraphs are simply for reference and do not affect the provisions of the policy.

The insured is advised that by accepting this policy, they agree that the statements in the declarations are accurate and complete, those statements are based upon representations made to the insurer, and that the policy has been issued based on those representations.

The next several conditions are self explanatory and need no explanation. Premiums must be paid, changes must be made with the consent of the insurer, either party may cancel the policy and the insurer will provide notice in advance, rights under the policy cannot be transferred by the insured without the insurer’s written consent, bankruptcy doesn’t affect the insurer’s obligations, suit cannot be filed until all terms have been complied with, subrogation applies, and each insured is treated separately under the policy.

12. Duties in the Event of Occurrence, Physical Damage, Claim or Suit.

(a) You must see to it that the Policy Issuing Office shown in the Declarations is notified as soon as practicable of an occurrence that may result in a claim or suit, or of any physical damage sustained that may result in a claim. In the event of theft, robbery or pilferage you shall also give notice to the police. To the extent possible, notice should include:

(1) How, when and where the occurrence or physical damage took place;

(2) The names and addresses of any injured persons and witnesses; and

(3) The nature and location of any injury or damage arising out of the occurrence or physical damage.

(b) If a claim is made or suit is brought against any insured, you and any other involved insured must immediately:

(1) Record the specifics of the claim or suit and the date received; and

(2) Send copies of any demands, notices, summonses or legal papers received in connection with the claim or suit to the Policy Issuing Office shown in the Declarations.

(c) You and any other involved insured must:

(1) Authorize the Policy Issuing Office shown in the Declarations to obtain records and other information;

(2) Cooperate with the Policy Issuing Office shown in the Declarations in the investigation or settlement of the claim or defense against the suit; and

(3) Assist the Policy Issuing Office shown in the Declarations, upon its request, in the enforcement of any right against any person or organization that may be liable to the insured because of injury or damage to which this insurance may also apply.

(d) No insured will, except at that insured’s own cost, voluntarily make any payment, assume any obligation, or incur any expense, other than for first aid, without the consent of the Policy Issuing Office shown in the Declarations.

13. Inspections and Surveys.

(a) We have the right to:

(1) Make inspections and surveys at any time;

(2) Give you reports on the conditions we find; and

(3) Recommend changes.

(b) We are not obligated to make any inspections, surveys, reports or recommendations and any such actions we do undertake relate only to insurability and the premiums to be charged. We do not make safety inspections. We do not undertake to perform the duty of any person or organization to provide for the health or safety of workers or the public. We do not warrant that conditions are safe or healthful or comply with laws, regulations, codes or standards.

(c) Paragraphs (a) and (b) of this condition apply not only to us, but also to any rating, advisory, rate service or similar organization which makes insurance inspections, surveys, reports or recommendations.

(d) Paragraph (b) of this condition does not apply to any inspections, surveys, reports or recommendations we may make relative to certification, under state or municipal statutes, ordinances or regulations, of boilers, pressure vessels or elevators.

14. Examination of Your Books and Records.

We may examine and audit your books and records as they relate to this policy at any time during the policy period and up to three years afterward.

15. Premium Audit.

(a) We will compute all premiums for this policy in accordance with our rules and rates.

(b) Premium shown in this policy as advance premium is a deposit premium only. At the close of each audit period we will compute the earned premium for that period and send notice to the first Named Insured. The due date for audit and retrospective premiums is the date shown as the due date on the bill. If the sum of the advance and audit premiums paid for the policy period is greater than the earned premium, we will return the excess to the first Named Insured.

(c) The first Named Insured must keep records of the information we need for premium computation and send us copies of those records at such times as we may request.

Analysis:

The next set of conditions are again standard. Duties in the event of a loss outlines what the insured must do if a loss occurs, such as providing notice as soon as possible, noting names and addresses of any injured parties or witnesses, send copies of any legal demands to the insurer, cooperate with investigation of a claim, and other standard duties.

The insurer has the right to make inspections and surveys, make examinations and audit books and records up to three years past policy expiration, and perform premium audits in accordance with the insurers rules and rates.

16. Other Insurance. If other valid and collectible insurance is available to the insured for a loss covered by this policy, our obligations are limited as follows:

(a) Primary Insurance This insurance is primary except when Paragraph (b) below applies. If this insurance is primary, our obligations are not affected unless any of the other insurance is also primary. Then, we will share with all that other insurance by the method described in Paragraph (c) below.

(b) Excess Insurance

This insurance is excess over any other primary insurance available to you, covering liability for damages to which this policy applies, for which you have been added as an insured.

When this insurance is excess, we will have no duty arising from any coverage afforded by this policy to defend the insured against any suit if any other insurer has a duty to defend the insured against that suit. If no other insurer defends, we will undertake to do so, but we will be entitled to the insured’s rights against all those other insurers.

When this insurance is excess over other insurance, we will pay only our share of the amount of the loss, if any, that exceeds the sum of:

(1) The total amount that all such other insurance would pay for the loss in the absence of this insurance; and

(2) The total of all deductible and self-insured amounts set forth in all that other insurance.

When the insurance afforded by this policy is excess over any other insurance, then the limits of insurance shown in this policy shall be reduced by the applicable limits of such other insurance if such other insurance shall have been written through Global Aerospace Underwriting Managers Limited or any of its subsidiaries or subsidiaries thereof.

Using the method described in (c) below, we will share the remaining loss, if any, with any other insurance that is not described in this Excess Insurance provision and was not bought specifically to apply in excess of the limits of insurance shown in this policy.

(c) Method of Sharing

If all of the other insurance permits contribution by equal shares, we will follow this method also. Under this approach each insurer contributes equal amounts until it has paid its applicable limit of insurance or none of the loss remains, whichever comes first.

If any of the other insurance does not permit contribution by equal shares, we will contribute by limits. Under this method, each insurer’s share is based on the ratio of its applicable limit of insurance to the total applicable limits of insurance of all insurers.

17. Automatic Insurance for Newly Acquired Aircraft.

(a) The coverages that shall automatically apply to the newly acquired aircraft are the same as those applicable to the first scheduled aircraft of the same make and model shown in the Aircraft Schedule(s).

(b) Refer to SECTION IV - LIMITS OF INSURANCE for the limits of insurance applicable to newly acquired aircraft.

18. Failure to Give Notice.

Inadvertent failure to give notice or other information to the Policy Issuing Office shown in the Declarations, as required by this policy will not relieve us of our obligations set forth in this policy, provided that any such inadvertent failure is corrected as soon as possible after coming to the attention of you or your Insurance Department, if any.

19. Financial Responsibility Laws.

When this policy is certified as proof of financial responsibility for the future under the provisions of any financial responsibility law applicable to aircraft, such insurance as is afforded by this policy for bodily injury liability and property damage liability shall comply with the provisions of such law to the extent of the coverage and limits of insurance required by such law, but in no event in excess of the Limits of Insurance shown in the Declarations of this policy. The insured agrees to reimburse us for any payment made by us which we would not have been obligated to make under the terms of this policy except for the agreement contained in this paragraph.

20. Two or More Scheduled Aircraft.

When the insurance afforded by this policy applies to two or more scheduled aircraft, the terms of this policy shall apply separately to each.

Analysis:

The final set of conditions outline provisions when other insurance is available as well as coverage under this policy. This coverage is primary unless certain conditions apply, in which case this policy becomes excess. Duties under both provisions detail how claims are settled between all parties involved.

There is automatic coverage for newly acquired aircraft if that aircraft is the same as the aircraft already scheduled on this policy.

If the insured fails to give proper notice or other information to the issuing office shown in the declarations the insurers’ obligations remain intact if the failure to notify is corrected as soon as possible after discovery.

Financial responsibility laws may apply, and if so this policy will comply with such provisions if this policy is certified as proof of financial responsibility.

Lastly, if this policy applies to more than one scheduled aircraft, coverage applies to each aircraft separately.