The second half of my day at IIAN winter conference was interesting. Cheryl L. Koch of Agency Management Resource Group from California presented on Drones & Pollution Seminar. She started out by saying that the only thing connecting the two topics is that they both create a liability for the insured.
Since, we have the eBee I found Cheryl's take on insurance for drones to be very accurate. She split it up into two categories Agriculture and Non-agriculture.
The big issue is liability. If young kids are getting drones as gifts who is responsible? As with most cases of liability it "depends". Every case is different but if you get sued for Trespass, Nuisance, Invasion of Privacy it isn't a matter of if the plaintiff will be compensated, but rather of how much in our society today.
What is a Pollutant? Anything that is found somewhere it does not belong: water in your basement after a flood, excess soil in a stream, manure run off from a feedlot operation, excess fertilizer seeping into groundwater, and pesticide drifting onto a neighbors field. These are just a few examples of pollution in the ag sector. There are so many more in ag and in commercial production businesses. Why should a farmer have a policy with pollution coverage? So that if there is a situation where the lawyer makes the case, that the farmer is liable for the pollution they have a risk management tool in place.
The conference is geared toward independent agents with multiple purse lines (P & C, Life & Health, and Crop). That being said, Cheryl spoke a lot about how the agent needs to communicate with their clients to make sure they have adequate coverage. If an agent doesn't know what is going on, they cannot make sure that there is coverage. That goes for both the UAS and pollution.
This conference was a great way for me to get more confident in my understanding of insurance industry. I get more excited an motivate with each tidbit I learn. Crop insurance license here I come.
By Tiffany Hemenway
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