Drones in the Broadcast Industry


Leighton Chenery TV-Bay Magazine
Read ezine online
with Leighton Chenery
Issue 108 - December 2015

There is little doubt that the emerging technology of Drones within the Broadcast industry is most likely to have insurance implications. As the market continues to expand and organisations enhance their activities through the use of Drones, adequate insurance coverage will be of particular importance to protect against the more complex and high value risks. Whilst insurance solutions have been developed to meet the needs of manufacturers, distributors and operators, the diversity of potential applications means significant further insight is required to sufficiently manage the risk exposure. This piece identifies the key areas that will influence the availability and pricing of future insurance solutions.

Potential exposures

Statistics on incidents involving Drones are sparse and the absence of historical data impairs the ability of insurers to accurately assess potential exposures. Human Error is a key safety consideration with the possibility of negligent or reckless operators causing particular concern. Evidence of safe operational procedures and mandatory licensing of operators with training and certification schemes will enhance insurers ability to assess the competence of those pilots with permission to use Drones commercially. The integration of Drones into busy airspace will most likely require further technology enhancements in order to reduce the threat of collisions with reports of near miss events beginning to appear.

Whilst regulation within the industry is developing, it remains inconsistent with no harmonisation of international standards and little clarity on third-party liability. The rapid growth of Drone usage undoubtedly presents a significant challenge to those seeking to install a robust framework for a regulatory system that relies heavily on responsible behaviour and is difficult to monitor. Tracking and monitoring technology could provide means to gather evidence of non-compliance and Geo-fencing technology could reduce the risk of straying into controlled airspace. An assessment of operators competency will be required and licensing initiatives have already sprung up, which is a positive development for quantifying and managing this area of uncertainty.

Increasing threats

Public Liability insurance will be especially prominent as Drones interact with a greater range and value of third party interests. Whilst incidents, such as the Australian triathlete sustaining minor injuries after a Drone fell from the sky, have been relatively small and infrequent. As the commercialisation and development of this technology continues larger damages are an increasing threat. For example, the substantial damages and legal fees will emerge if a Drone collides with a commercial passenger aircraft, causing it to crash. Insurers have recognised this fact and more and more standard exclusions, relating to the use of Drones, apply in policy wordings as a result.

Security and privacy

Drones are particularly vulnerable to cyber attacks and privacy infringements. Cyber security will be an important consideration as Drones rely on data links for command, control and navigation without encryption. Being so vulnerable to jamming, interception and manipulation it is hardly a surprise that Drone hackers are establishing and targeting this area for hostilities.

Privacy concerns are also a strong issue. Some local jurisdictions within the US debating legislation authorising individuals to shoot down Drones believed to be infringing their privacy. These considerations would drive demand for Professional Indemnity cover and require operators to perform Privacy Impact Assessments due to the inadvertent filming of individuals.

The future

Going forward, the quality and evidence of risk management that operators can provide will influence the varying terms, conditions, excess and ultimately price they will pay to secure the required coverage. Liability in the event of damage or bodily injury arising from an incident is subject to some uncertainty. Generally, a human operator would retain this liability but a technical malfunction or malicious attack outside of their ability to control could lead to claims against wider parties.

The potential of Drones within the industry remains an exciting one with the ability to enhance a number of areas. However, to ensure the technology is used safely and responsibly and the risk is managed effectively, it is important to consider the insurance implications and the coverage required to minimise your exposure.

Sutton Winson is a specialist Insurance Broker in the Broadcast & Media industry and is able to help you manage your business risks. To discuss your insurance requirements, please contact Leighton Chenery on leighton.chenery@swib.co.uk, call 07976 327 407 or visit www.suttonwinson.com


Tags: iss108 | drones | insurance | sutton winson | Leighton Chenery
Contributing Author Leighton Chenery

Read this article in the tv-bay digital magazine
Article Copyright tv-bay limited. All trademarks recognised.
Reproduction of the content strictly prohibited without written consent.

Related Interviews
  • BeyondHD - Drones at BVE 2015

    BeyondHD - Drones at BVE 2015

  • Tour Seminar - Everything you need to know about drones...

    Tour Seminar - Everything you need to know about drones...


Articles
Perimeter LED screens management
Nicolas Houel Opened in January 2016, Parc Olympique Lyonnais, also known as Groupama Stadium, is the new home of Olympique Lyonnais football club, one of the most popular clubs in France. Since its inauguration, the stadium was a host of UEFA Euro 2016, and was also chosen to stage, among other important events, the 2018 UEFA Europa League Final and football at the 2024 Summer Olympics.
Tags: iss133 | 3dstorm | graphics | groupama stadium | liveexpert | livecg | deltacast | Nicolas Houel
Contributing Author Nicolas Houel Click to read or download PDF
Why are trade shows still important
Mike Crimp First, the disclaimer: as the CEO of a rather large trade show, my opinion is likely to be skewed. However, I wouldn’t be here – now in my eighth year at IBC - if I didn’t truly believe that well-curated trade shows like IBC are a hugely important resource for our industry.
Tags: iss133 | ibc | innovation award | Mike Crimp
Contributing Author Mike Crimp Click to read or download PDF
Taking on a self employed placement year
Joshua Round The idea of being self-employed or freelancing has always been somewhat terrifying for me. There is a level of uncertainty and responsibility that comes with the freedom of being self-employed, the likes of which makes me wonder why I chose to give it a go for my placement year as part of my university course - (BSc) Television and Broadcasting.
Tags: iss133 | placement year | university | student | education | portsmouth | Joshua Round
Contributing Author Joshua Round Click to read or download PDF
Creating Authentic Content That Counts
Frank le Mair We’re deep into the 2010’s and the way in which we consume content has changed forever. Broadcasters and content owners are fighting for eyeballs in a saturated market where consumers are watching their favourite shows on different devices across a number of platforms. To target millennials and younger generations, who generally consume short bursts of video on YouTube and social media - particularly Snapchat, Instagram and now IGTV - media companies are creating more and more authentic stories and are using platforms that are compelling for this demographic. Unlike generations before them, they have totally new video viewing patterns and ideals.
Tags: iss133 | insight tv | monster energy | amazon | millennial | Frank le Mair
Contributing Author Frank le Mair Click to read or download PDF
How todays technology platforms can make AMAZING seem mundane
Bruce Devlin - new Some things never change. It's September and it's time for another IBC. Maybe I'm getting old and maybe I have selective memory about the past, but recently there hasn't been the buzz of years gone by. Sure, as you wander around the vast halls there will be lots of enthusiastic sales people trying to give you the best demo possible, but something has changed and to survive, I believe that vendors and customers need to change too.
Tags: iss133 | ibc | class | vulture | imf user group | Bruce Devlin - new
Contributing Author Bruce Devlin - new Click to read or download PDF