Australian businesses could face millions of dollars in property damage and injury costs under new drone regulations that took effect last Thursday, QBE warns.

The Civil Aviation Safety Authority (CASA) no longer requires commercial operators of sub-2kg remotely piloted aircraft (RPA) to hold a remote operator’s certificate or a remote pilot licence.

Instead they are required only to register with CASA five days before their first flight, and adhere to safety regulations.

QBE specialist aviation underwriter Simon Hooper says most businesses do not understand the insurance implications if something goes wrong.

“We’re expecting to see a steep rise in the number of RPAs in use as businesses realise the potential of using them, but there is a worrying lack of understanding that there are still major risks associated with drones,” he said.

Mr Hooper says operators could be held responsible for any injury or damage, regardless of whether there is negligence or intent.

“Given many operators won’t have had extensive training, if any, this presents a genuine risk, which could leave operators exposed. The cost associated with an injury or property damage could go into the millions – in the worst case, they could lose everything.”

Mr Hooper says operators should ask their brokers to ensure they have a specialist policy.

QBE will insure operators who are members of an RPA industry association and hold a remote operator’s certificate or have completed training with a registered training organisation.

Last week CASA spokesman Peter Gibson told insuranceNEWS.com.au unlicensed operators of sub-2kg RPAs are not allowed to fly within 30m of a building or people, or within 5.5km of a controlled airport, effectively ruling out city use.