1. Drones Taking Flight for Public Entities

2. Proprietary Notice an disclosure
The material contained in this presentation has been prepared solely for informational purposes by Genesis Management and Insurance Services Corporation. The material is based on sources believed to be reliable and/or from proprietary data developed by Genesis, but Genesis does not represent as to its accuracy or its completeness. The content of this presentation is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Disclosure
Genesis Insurance Company is licensed in the District of Columbia, Puerto Rico and all states. Genesis Insurance Company has its principal place of business in Stamford, CT and operates under NAIC Number

3. Watch OUT

4. Poll Drone Usage Concerns Coverage Your Questions and Experiences
Agenda
Poll Drone Usage Concerns Coverage
Your Questions and Experiences
Are Always Welcome
Together, we’ are focusing on 3 areas important to drones
Drone Basics: we’ll cover the fundamentals of drones – also known as unmanned aircraft systems – from the basic terminology to the technology available
Legal Framework: next, we’ll discuss the legal framework that governs the use of drones. There are existing federal regulations and federal regulations that are being developed. On top of that, there may be state and local regulations
Utilization & Risks: finally, we will address how public entities are using drones and the risks that entails.

5. Drone Poll
Are You Using Drones? When Did You Learn They Were Being Used? Did the User Obtain Your Permission? + A COA?
Many people – and much of the media – refer to the term “drones”
The term sounds a little ominous as it calls to mind military laser guide missiles targeting a national enemy.
But the government and industry typically uses the term “unmanned aircraft system” or “UAS”
The main reason is that most drones are not simply the vehicle itself. They are complex systems of hardware and software
You may also hear the term “UAV,” which refers to an “unmanned aerial vehicle”
You may also hear them called “remotely piloted aircraft,” to underline that there’s always a human controlling it, and it’s not some mindless -- or worse – machine making the decisions
The key point: it’s a system that includes the vehicle, but also other hardware and software components that interact with humans

6. Drone Poll
Is One Drone Being Used for More Than One Operation or Department? Any Contracted Drone Usage? Have Drones Improved Your Operation?

7. Drone Concerns
Are There Protocols in Place? Write Out the Rules + Make Sure They Are Followed

8. Drone Concerns
Have You Run Into Any Difficulties With Your Drones? If So How Was It Addressed?

9. UAS Basics What Are Drones? Unmanned Aerial Vehicles (UAV)
Unmanned Aerial Systems (UAS)
Student Unmanned Aerial Systems (SUAS)
Remote Piloted Aircraft Systems (RPAS)
Model / Recreational Aircraft
Less Than 55 Pounds
Fewer Regulations
Unmanned Surface Vehicles

10. Drone Usage
Police Use Surveillance - Photography Inspection Accident Reconstruction

11. Drone Usage
Infrastructure Inspections Roofs, Spires, Antennas Bridges + Roads Rivers + Levees Outlying Fields What is Growing Out There?

12. Utility Inspection Electrical + Telephone Wire Towers Oil Pipes
Drone Usage
Utility Inspection
Electrical + Telephone Wire Towers
Oil Pipes
Wind Turbines
Water Towers
Dams
Power Plants + Sub Stations

13. Drone Usage
Fire Suppression

14. Drone Usage
Any Other Usage?

15. Legal Framework for UAS
Three Spheres of Regulation
Federal
State
Local

16. Legal Framework for UAS
Federal Aviation Administration (FAA) is responsible for Setting and Enforcing Safety Standards in National Airspace (NAS) Since 2008, the FAA has been trying to Fashion Comprehensive Regulations to Govern the use of UASs (FAR)
Still no formal set of Rules – Suggestions released in February of 2015 with a deadling set for September of 2015, but rules are still pending
Still Testing + researching drone usage at 6 sites nationwide
In December 2013, FAA established 6 testing areas around the country to research UAS technology to inform the process of developing regulations. [Alaska, Nevada, New York, North Dakota, Texas, Virginia]
Recently allowed North Dakota to fly at all heights at any time of day

17. Legal Framework for UAS
Scope of FAA Authority
Recreational Use Not Regulated
Below 400 Feet + Within Sight
All Other Operations Are Regulated
Operational Limitations - i.e. - Not near airports
Operator Certification
Aircraft requirements
UAS are supposed to stay out of National AirSpace
Exceptions Allowed
Governmental Agencies Must apply for a COA or an Exemption 333
FAR – Federal Aviation Regulations - Section 333 a request for exemption from some of the FAR No fee required to
do so by FAA The drone still has to be registered, if it is going to be used for commercial reasons
With No COA, it should not be used HOW TO OBTAIN – Registered within 45 days of approval
Operation of UAV
Pilot Certification
Crew Certification
Training
Medical Certification
Airworthiness of UAV
Reporting
Trained Pilot; Sometimes an FAA Pilot Certificate
Specific Purposes of Use
Specific Geographic Area
Specific Time Periods
Coordination with Air Traffic Control Facilities
Line of Sight

18. State Regulation Varies
Legal Framework for UAS
State Regulation Varies
Over 20 States have Enacted Laws Addressing UASs
Some Allow Usage, Some Do Not
In 2015, 45 States considered 154 bills related to Drones
Some states waiting for final FAA rules before approving any State legislature
State Regulation Varies
Most Deal with How Law Enforcement can Use UAVs
Other Issues include: Hunting, Traffic Enforcement, Data Retention, Privacy and Disclosure of Information to 3rd Parties
Likely to Find Conflicts with FAA Regulations

19. State/Local Laws
More than THIRTY municipalities have passed their own ordinances/laws regarding the use of drones including: Miami/Chicago/Seattle/Pittsburgh/Los Angeles:
• Pittsburgh banned the use of drones above, within or in the vicinity of a public park
• Chatham Township, New Jersey prohibits the use of drones launched from, landing on, or flying above government or public buildings, property, or parks
• Los Angeles passed an ordinance that approximately mirrors FAA recreational drone guidelines with a punishment for violators of up to $1,000 and six months in jail
Other municipalities have previously banned the uses of drones altogether from flying within the airspace of the city - St. Bonifacius, MN- Northampton, MA: Iowa City IA
Basically regarding the restriction of unwarranted surveillance – Nothing New in Ks or Mo
Missouri Revised Statutes Aircraft and Airports
2014 House Bills # Chapter
Pending
Search Warrant Requirement
ISO’s Recommended Endorsements Are Now
Approved for Use in Missouri For Commercial General Liability

20. FAA Response
FAA RESPONSE: “If municipalities enacted ordinances regulating UAS in the navigable airspace and a significant number of municipalities followed suit, fractionalized control of the navigable airspace could result. In turn, this ‘patchwork quilt’ of differing restrictions could severely limit the flexibility of FAA in controlling the airspace and flight patterns, and ensuring safety and an efficient air traffic flow.
A navigable airspace free from inconsistent state and local restrictions is essential to the maintenance of a safe and sound air transportation system.”
Registration
Operational limitations:
Weight – 55 pounds
Line of sight
Daytime
Max speed = 100 mph
Max altitude = 500ft
Operator Certification & Responsibilities
Testing, initially & every 2 years
Vetting by FAA
Obtain an operator certificate
Pre-flight inspection
Aircraft Requirements
Airworthiness certification not required
Aircraft registration & markings required

21. Wisconsin
Wisconsin SB 338 prohibits using a drone to interfere with hunting, fishing or trapping. AB 670 prohibits the operation of UAS over correctional facilities.
First one some people like to inhibit hunting, etc
Second one because of Ohio Incident

22. Drone Concerns
Surveillance and Privacy Rights ACLU Involvement Privacy Safeguards Drone Proliferation / Air Traffic Jams Park Service Safety State and Federal Oversight / Statutes FAA Rules / Permits / Licensing
Warrants + Entreprenurial Litigation

23. UAS Insurance Risks Possible Types of Exposure Property Damage
Bodily Injury
Invasion of Privacy
Cyber-Attack
Operators & Public Officials

24. Underwriting Considerations
UAS Insurance
Underwriting Considerations
Aircraft Definition
Owners Liability
Non-Owners Liability

25. Questions or Comments
Knowbeforeyoufly.org

26. Contact Information
Richard A. Spiers CPCU, ARM, ARe
Genesis Mgmt and Insurance Services
Chicago, Ill
Phone: (312)