Picture this: you're in your backyard having a barbecue with friends. It's a bright, sunny day and you hear a loud noise. Looking up, you see an unmanned aircraft system (UAS), better known as a drone, hovering over your gathering, apparently taking pictures. It's startling to say the least!
Drones have expanded from their military role of unmanned combat strikes to use by businesses in a variety of ways. Hollywood latched onto the idea, requesting permission to use cameras mounted on drones to film remote areas or dangerous locations, following the government's approval of a request by BP to use drones to survey oil pipelines in remote areas of Alaska.
The Federal Aviation Administration (FAA), which controls all U.S. air space, also regulates the domestic use of drones and requires certificates of authorization before allowing the drones to fly. On Sept. 25, the agency granted regulatory exemptions to six aerial phot and video production companies, which is the first step to allowing the film industry to use drones extensively.
Insurance industry wants to be next
The insurance industry also is interested in using drones, primarily to survey damage at disaster sites. Think how much faster claims might be resolved if a drone could fly over a tornado-ravaged town or burning building and return information instead of waiting for it to be safe for an adjuster to physically visit the site.
United Services Automobile Association (USAA) has requested permission from the FAA to test-fly five-pound drones in a rural area near its San Antonio, Texas, headquarters, according to a recent statement. "We're constantly seeking ways to better serve our members, especially during catastrophes…and applying new technologies is one way we can do that," added Alan Krapf, president, USAA property and casualty insurance group.
USAA's use would follow in the footsteps of law enforcement and public safety officials, who are currently using drones for search and rescue, border patrol, and firefighting for example. State Farm has also confirmed that it is applying to the FAA for permission to use drones.
Is it legal?
The FAA makes a distinction between model aircraft used by hobbyists and drones used for commercial purposes. The agency requires commercial businesses to apply for exemptions although hobbyists can freely fly model aircraft that meet the existing regulations.
In the Special Rule for Model Aircraft, the FAA provides the following examples of flights that could be conducted as hobby or recreation flights and other types of flights that would not be hobby or recreation.
| Hobby or recreation | Not hobby or recreation |
| Flying a model aircraft at the local model aircraft club. | Receiving money for demonstrating aerobatics with a model aircraft. |
| Taking photographs with a model aircraft for personal use. | A realtor using a model aircraft to photograph a property that he is trying to sell and using the photos in the property's real estate listing.A person photographing a property or event and selling the photos to someone else. |
| Using a model aircraft to move a box from point to point without any kind of compensation. | Delivering packages to people for a fee. 6 |
| Viewing a field to determine whether crops need water when they are grown for personal enjoyment. | Determining whether crops need to be watered that are grown as part of commercial farming operation. |
The FAA is concerned about what it calls "Class B" airspace, which exists over major urban areas and contains the highest density of manned aircraft. Under the FAA Modernization and Reform Act of 2012, the agency is required to issue regulations on the commercial use of drones by September 2015.
States and local governments also are interested in regulating the commercial use of drones. As of June 30, legislation has been introduced in 36 states, according to a list maintained by the American Civil Liberties Union.
Other business uses
Creative entrepreneurs and businesses are sure to think of other uses for drone aircraft. In addition to Amazon's highly publicized proposal to deliver packages by drone, Lakemaid Beer delivered beer to ice fishermen on Lake Waconia in Minnesota, but were stopped by the FAA. Several companies have begun delivering pizza by drone around the world, including India, Russia and the United Kingdom. Amateur video, which has seen an increase in attention as a result of smart phones, could also provide news footage from the scene via drone camera before reporters arrive while news organizations could cut costs by using drones instead of manned helicopters with a camera operator and reporter aboard.
Are you aware of other commercial uses in your area? Please let us know in the comment section below.
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Rosalie Donlon
Rosalie Donlon is the editor in chief of ALM's insurance and tax publications, including NU Property & Casualty magazine and NU PropertyCasualty360.com. You can contact her at [email protected].
