Relaxed drone regulations in Australia put businesses at risk

The Civil Aviation Safety Authority (CASA) has relaxed its regulations surrounding drones – or remotely piloted aircraft (RPA) – meaning Australian businesses could face millions of dollars in costs for property damage and injury, according to QBE.

Previously, commercial usage of drones required operators to hold both a remote operators certificate (ReOC) and a remote pilot licence.

The new regulations put in place only require operators to register with CASA five days in advance and adhere to existing safety rules.

Simon Hooper, specialist aviation underwriter, suggest the regulations presented an exciting opportunity for businesses across the country, but warned that most businesses weren’t aware of the implications should something go awry.

“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,” Hooper said.

Hooper suggested that if something went wrong, strict liability would be imposed, meaning operators can be personally held responsible for any injury or damage caused, irrespective 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.

“This type of cover typically won’t fall under standard business policies, so we’d advise them to ask their broker to ensure they have a specialist policy.

“In less serious incidents, it can still prove costly to repair damage caused to the aircraft itself, or caused by any accidents. We’ve already seen a number of incidents amongst our existing customers where poor flight planning has resulted in collisions with trees, buildings or even birds.

“So whilst the relaxing of regulations will make RPAs more accessible, we’d urge operators to ensure they have adequate protection.”