QBE has introduced dedicated drone insurance to meet rising demand as the commercial use of remotely piloted aircraft increases.

It says the cover is a standalone product, separate from its aviation policies, and addresses risks specific to drones.

More than 1200 commercial operators in Australia hold a remote operator’s certificate, while use of the aircraft has increased since the Civil Aviation Safety Authority (CASA) relaxed licensing requirements on smaller models, according to a QBE report.

About 7000 individuals or companies provide services under an “excluded category” that includes craft below 2kg flown for commercial reasons, QBE says.

Increasing commercial usage – outside of sport or recreation – raises liability risks around bodily injury or property damage, with one in 50 drones crashing. Risks for owners and operators extend to transporting the devices and protecting electronic data, QBE says.

“The exemption in the CASA regulations has resulted in greater accessibility for commercial drone operators, and there is a risk some operators without aviation experience do not understand the regulations and legislation they operate under,” Australia and New Zealand Operations Manager – Underwriting and Distribution Michael McNamara said.

Aerial photography, inspection and surveying are the most common commercial uses, with many operators contracting their services in the resources and energy sector.

QBE says farmers are investing in entry-level units to conduct crop monitoring, aerial spraying, irrigation and soil and field analysis. Commercial use could also include tradesmen flying drones to examine hard-to-access areas.

A Senate committee inquiry reviewing the use and safety implications of drones is due to report by March 28.