Drone technology may be more than a fad but rather, an exciting new tool for many real estate professionals to survey, assess and show a property. Laws around drone use are still in developmental stages, if they exist at all. Similarly, their use in real estate is new and untested. What is clear is that real estate professionals can put themselves at risk through the use of drones, and the insurance industry has not yet formulated a cohesive response to coverage. Therefore, current policy coverages and exclusions will need to suffice until drone usage is more specifically addressed in E&O and General Liability policies. The potential for claims is significant, and are already being made. Consider the possibilities: Invasion of Privacy/Personal Injury (picture taking of a person’s activities), Trespassing (drones flying over air space designated as private), Property Damage and Bodily Injury (the drones come crashing down), and other unfavorable scenarios. As insurance industry responses evolve, any business considering drone use should consult not only with local regulations, but also with their insurance professional to prepare for the inevitable “crash landing”.

John Torvi is the VP of Marketing & Sales at the Landy Insurance Agency, a national leader in providing professional insurance services to real estate firms, appraisers, title agents, attorneys and others. He can be reached at 781-292-5417 or at johnt@landy.com.