a new insurance program for LiDAR equipment
Lidar News spoke to Tyler Crawford with LiDARinsurance.com recently about a new, comprehensive, and affordable insurance program his team created for LiDAR equipment attached to drones, planes, and helicopters.
Why did you create a LiDAR-specific insurance product for the aviation industry?
After supporting drone operators and GIS professionals with their insurance for the past 5 years, my team recognized that insurance carriers were applying very high rates to insure their aerial equipment and providing limited coverage. We were spending a lot of time with engineering, surveying, and other industries that used LiDAR equipment, so we understood the level of risk was much different than say a film production company. As brokers, we are constantly looking for better options for our clients and this seemed like a great opportunity to help the industry.
How did you get carriers on board with a customized program?
Insurance carriers are always looking for new industries to underwrite, so we were confident we could get them on board with a specialized program for LIDAR equipment. In addition, our firm has strong relationships with key stakeholders at the top insurance carriers which really helped move things along. After getting the attention of their underwriters, we put together an analysis of the industry, provided metrics to support the data for LiDAR operators, and showed them the opportunity with a new policy. It was a no-brainer after they reviewed our pitch.
What makes your new program different from current insurance programs?
Two things – coverage and price.
We started by looking at the coverage offered by the leading aerial equipment insurance carriers and discovered the policies were quite limited. For example, the equipment was being insured on Actual Cash Value, not Replacement Cost. This means that if there is a loss, the carrier factors in depreciation which can end up being very costly to the customer. It is a pretty nice way for the insurance carrier to pay out less than what the customer needs. With most LiDAR equipment being expensive, we knew the equipment needed to be insured at Replacement Cost.
On the other hand, the price was a challenge with current insurance carriers, and we believe the rate was too high for the risk. As I said before, the rate being applied to the value of equipment was not changing from a tv production camera to a LiDAR sensor. When you think about what the drone is doing on a film production set (i.e., flying close to buildings, people, water, etc.), and a surveyor using LiDAR in an open field, the risk is not the same.
After a year of fine tuning, we worked with a few amazing insurance carriers creating a competitive insurance solution that we were excited to share with the industry.
How do you apply for the new LIDAR insurance program?
We make it easy. Our firm created the LiDAR program, but at our core we are modernizing the insurance experience for our clients across all industries. We adapt to our client’s communication styles, integrate technology to make the process easier, and pride ourselves on the best customer service. Most importantly, we are deeply knowledgeable about our clients’ businesses and go above and beyond to make sure they are insured properly.
Do you offer other insurance like Errors & Omissions?
Yes, we are a full service brokerage and offer prospective clients a complimentary risk assessment. If you’re using LiDAR equipment, you’ll definitely need insurance such as Aviation Liability, Errors & Omissions, and Cyber Liability. Most businesses in the space need a list of additional insurance, so it is best that anyone interested speaks with a specialist about their business. We have a team of amazing insurance advisors that would love to answer any questions and provide advice.
Can people reach out directly to you?
Of course! I am happy to speak with anyone who has questions or would like to get the process started. Here is my cell and email – 213.792.2846 | tyler@LiDARinsurance.com
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