Drone Insurance
Dictionary

Your everyday drone insurance terms,
defined by humans.

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Weather Widget

The SkyWatch.AI Weather Widget is available through the mobile app flight module and it provides live updates on weather conditions. Dark Sky provides all weather updates as seen through the weather widget.

Waiver of Subrogation

A Waiver of Subrogation is a clause stating that one entity is willing to waive (give up) their rights to subrogate against another entity.

Underwriting

Underwriting is the process of reviewing applications for insurance and the information provided by the insured. Essentially underwriting is the risk selection process.

Underwriter

The Underwriter is responsible for evaluating and classifying risks and accepting or rejecting an insured's insurance application.

TRIA

TRIA refers to the Terrorism Risk Insurance Act. This act is a government sponsored coverage that is placed into insurance policies in order to protect against acts of terrorism.

Total Loss

A Total Loss refers to damage that occurs in which the property or item insured is damaged beyond repair.

Safety Score

A Safety Score is the average score given to a pilot's flight logs after they have been run through the SkyWatch.AI algorithm. There are three different Safety Score levels which provide discounts: Gold, Platinum, and Diamond.

Recreational Use

Recreational Use the UAS shall be used for private and pleasure flights excluding any operation for which a charge is made or excluding any used of the UAS involving the insureds business or employment, or any use as required under FAR 107, 333 Letter or COA.

Recorded

Upon purchasing and activating an insurance policy, the policy is filed and recorded by the insurance company. In this context, the word recorded does not refer to recording flight logs within the app.

Quote

The UAS (unmanned aircrat/drone) shall be used for private and pleasure flights, excluding any operation for which a charge is made or excluding any use of the UAS involving the insured's business or employment, or any use as required under FAR 107, 333 Letter or COA (certificate or waiver or authorization).

Property Damage Liability

Property Damage Liability pays for the damage done to someone else's property as a result of the named insured's operation.

Property Damage

Property damage insurance provides liability coverage for damage caused to someone else's property.

Primary

A Primary policy is a policy that pays first in the event of a covered loss. All SkyWatch.AI policies are primary policies.

Premium

A Premium is the consideration, (money), paid to the insurance company to issue the policy. - or - The amount paid for an insurance policy.

Pre-Booking

Pre-Booking is the ability to bind a policy before the official policy start date. Hourly, monthly, and annual policies can be pre-booked up to 60 days in advance in order to obtain proof of insurance.

Policy Period

The Policy Period is the time period, stated on the policy document and Certificate of Insurance, during which the policy provides coverage.

Policy Number

A Policy Number refers to the number given to any active policy. The number is used as a reference and tracking measure.

Personal Injury

Personal Injury means injury, other than bodily injury or property damage, caused by: false arrest, malicious prosecution, wrongful entry, slander, or violations of privacy.

Per Person

Per Person refers to the maximum amount available for payment of bodily injury to a single person in any accident, despite what the policy states as the liability limit for bodily injury and property damage claims.

Per Occurrence

Per Occurrence refers to a limit within the liability limits that puts a cap on the payment for any claim that arises from a single occurrence.

Part-107 Certificate

A Part 107 Certificate is an FAA issued certification given to drone pilots who have passed a written exam and obtained legal permission to offer professional drone services.

ParaZero Safety Score Discount

Through SkyWatch.AI's partnership with ParaZero, pilots operating with a SafeAir Parachute are eligible for 15% off their liability premiums from the very first policy purchase.

Occurrence

Occurrence means an accident, including continuous or repeated exposure to conditions, which results in bodily injury or property damage during the policy period neither expected nor intended from the standpoint of the insured. In the event of continuing or progressively deteriorating damage over any length of time, such damage shall be deemed to be one occurrence, and shall be deemed to occur only when such damage first commences.

Non-Contributory

Non-Contributory means that the insurance policy must pay losses before other applicable policies kick in while also not seeking contribution from other policies.

Named Insured

The Name Insured is an individual(s) whose name appears on the policy's declaration. The Name Insured can also be an organization.

Monthly Policy

A Monthly Policy is an insurance policy that provides coverage for one month at a time. The policy renews or turns off after one monthly billing cycle.

Medical Expenses

Medical Expenses are expenses incurred for necessary medical, surgical, x-ray or dental services, including prosthetic devices, and necessary ambulance, hospital professional nursing and funeral services. Medical expenses can be paid on a no-fault basis in order to avoid a lawsuit, however, they do not replace bodily injury indemnity.

General Liability

General liability protects your business for property damage or bodily injury claims that arise out of business/commercial operations. General liability does not always include aviation liability for drone use.

Insured

An Insured is an indiviudal covered by an insurance policy.

Insurer

An Insurer is the company responsible for issuing the insurance policy.

Hull Inventory

What does Hull Inventory mean?

Hull Coverage

Hull Coverage is insurance which covers damage sustained to the aircraft listed on the name insured's policy. Hull coverage is subject to a deductible and additional premium which is calculated based on the insured value of the aircraft.

Hourly Policy

An Hourly Policy is an insurance plan that provides coverage by the hour for a certain location. (Min of 1 hour, Max of 8 Hours)

Flight Hazard

A flight hazard is a situation that increases the chances of a probable loss.

Flight School/ Education Discount

SkyWatch.AI rewards safer pilots with lower premiums. Those pilots who graduate from certain drone training courses are elibigle for a 15% liability discount from their very first insurance purchase.

Flight Logs

Flight logs are digital records of your flight. They detail telematics data like height and speed, GPS data as well as battery info and other technical information. Every drone flight has a record which is usually stored on the controller app/device and on the drone itself. Pilots and safety systems can learn and improve based on insights from flight logs analysis.

Exclusion

Exclusions are a part of the insurance policy that specify details which are not included within the policy terms.

Excess

An Excess Policy is a policy that will only pay a loss after the primary policy has already kicked in and paid its given limit.

Endorsement

An Endorsement is a printed addendum to the policy that is used to modify or change the policy's original terms and conditions. Some endorsements are included in the original policy document while some are added during the policy period. Endorsements must be given as an attachment to the policy and signed by an executive officer of the insurer.

Declaration Page

The Declaration page is your policy summary and it includes important information such as as your coverage breakdown, policy dates, coverage territory, etc.

Deductibles

A Deductible is the amount of money an insured must pay on a claim before the insurance policy kicks in and provides coverage.

Date of Issue

Date of Issue refers to the date in which your policy was created.

Coverage Territory

The Coverage Territory defines the exact location where your coverage is provided.

Commercial Flight

A Commercial operation is a flight conducted for the purpose of making a profit.

Claim

A Claim is a filed when an accident occurs and the insured is seeking to cover a loss which is protected within the terms of the insurance policy.

Certificate of Insurance

A Certificate of Insurance (COI) is a legal document which indicates that an insurance policy has been issued. It serves as proof of insurance and outlines certain details within the policy terms. COIs are created immediately upon activation. A copy is sent to your email and it can be edited and accessed at any time through the mobile app or web portal.

Certificate Holder

The Certificate Holder refers to the entity which recieves a Certificate of Insurance as proof of coverage. The Certificate Holder can be an individual, venue, business client, etc.

Cancellation

A Cancellation refers to the termination of an insurance policy, by either the named insured or the insurer before the policy period's date of expiration.

Bodily Injury Liability

Bodily Injury Liability pays for the bodily injury damage resulting from an accident in which the name insured is at fault.

Bodily Injury

Bodily Injury refers to injury, sickness, or disease sustained by any person which occurs during the policy period.

Aviation Liability

Aviation liability provides pilots insurance for damage resulting out of aircraft operations.

Auto-Renewal

Auto-Renewal refers to the automatic renewal of your monthly or annual drone insurance subscriptition. At the end of each policy cycle, the policy will renew automatically and produce new coverage documents. Auto-renewal can be turned off at any time.

Annual Policy

An Annual Policy is an insurance plan that provides coverage anywhere and anytime in the United States for 365 days.

Aggregate

An aggregate is the limit an insurance company will pay an insured for covered losses sustained during a set period of time.

Additional Insured Endorsement

An Additional Insured Endorsement is a policy endorsement used to add coverage for an additional insured. The endorsement extends the reach of the policy and allows entities to have specific language listed.

Additional Insured

Additional Insureds are listed on the Certificate of Insurance and can also be added to the policy by an endorsement.