Tokio Marine Kiln to offer insurance for drone testing

Japan-based speciality insurer Tokio Marine Kiln (TMK) is to provide insurance for the testing of drone-based services.

The policy, which will be launched in mid-May, will offer cover against damages or accidents incurred during the testing of commercial services employing drones or other unmanned aerial systems (UAS) – most notably for parcel deliveries.

According to the insurer, the new product will offer more extensive coverage for commercial users of drone technology. Existing policies have provided cover for third-party liability caused by drone accidents, as well as the cost of repair to damaged or destroyed drones.

However, the new policy will cover the cost of repairing an entire fleet of drones should a fault be discovered in testing. It will also provide more financial compensation to cover the public relations cost stemming from a drone-related accident and any expenses associated with investigating the cause of an accident.

TMK was one of the first insurers to offer an extensive drone or UAS-based insurance policy, launching its One Unmanned policy on the Lloyd’s market back in May 2015, partly due to the dramatic increase in the commercial use of UAS.

Drone insurance policies were then added to the insurer’s One TMK digital exchange to boost distribution and now the latest amendment will extend coverage, says TMK.

Maximum coverage for investigating an accident’s cause and for news conferences or other PR-related costs will be set at JPY3m ($26,877). For repairs, the policy will pay for actual costs. The premium will be determined based on various factors, including the nature and scale of the testing