1. Forms
2. CG
3. CG-24-50

What the form is

Form CG 24 50, titled "Limited Coverage For Designated Unmanned Aircraft," is an endorsement to the standard Commercial General Liability (CGL) Coverage Part. Its primary function is to provide specified liability coverage for bodily injury, property damage, and personal and advertising injury that arises from the ownership, maintenance, or use of "unmanned aircraft," commonly known as drones. Crucially, this coverage is limited; it only applies to the specific unmanned aircraft that are listed in the endorsement's schedule and solely for the operations or projects also detailed in that schedule. This endorsement typically serves to grant back a measure of coverage that might otherwise be excluded by the standard aircraft exclusion in a CGL policy or by more specific unmanned aircraft exclusion endorsements, such as CG 21 09.

Classes of business it applies to

This endorsement is pertinent for a wide array of businesses that integrate drones into their commercial operations and therefore require insurance for the associated liability risks. Examples include:

• Construction: Companies using drones for tasks like site surveys, progress monitoring, and structural inspections.
• Real Estate: Agencies employing drones for aerial photography and videography of properties for marketing purposes.
• Agriculture: Farming operations using drones for crop assessment, field mapping, or precision spraying.
• Media and Entertainment: Businesses using drones for cinematography, news gathering, or event coverage.
• Public Entities and Emergency Services: Police, fire departments, and search and rescue teams using drones for surveillance, situational awareness, and emergency response.
• Inspection Services: Businesses specializing in inspections of infrastructure like roofs, power lines, bridges, or pipelines using drones.

Special considerations

• Scheduled Coverage is Paramount: Coverage is strictly limited to the unmanned aircraft specifically identified in the endorsement's schedule and only for the operations or projects described therein. Any use of a non-scheduled drone or for a non-scheduled operation will likely not be covered.
• Potential for Aggregate Limit: The endorsement includes a provision for an optional Unmanned Aircraft Liability Aggregate Limit to be stated in the schedule. If applied, this would cap the total amount the insurer will pay for all claims related to the scheduled drone operations during the policy term.
• Relationship with Exclusions: CG 24 50 is often utilized to provide a specific coverage grant-back when a broad unmanned aircraft exclusion (e.g., CG 21 09) is part of the policy. Understanding this interplay is vital.
• Regulatory Adherence: While the ISO form itself may not mandate compliance with aviation regulations, operating drones in accordance with all applicable federal (e.g., FAA Part 107), state, and local laws is critical for insureds. Non-compliance could jeopardize coverage. Notably, some jurisdictions, like New York City, may reference ISO Form CG 24 50 as a benchmark for required drone liability insurance.
• Definition of "Unmanned Aircraft": The CGL policy, as amended by this endorsement, will contain a definition of "unmanned aircraft," generally meaning an aircraft not designed or modified to be controlled by a person from within or on the aircraft.

Key information for agents and underwriters

• Thorough Risk Assessment: Underwriters must meticulously evaluate the specifics of the drone(s) being insured (type, weight, safety features), the precise nature of the scheduled operations (e.g., flight paths, altitudes, proximity to sensitive areas like airports or crowds), and the qualifications (training, experience, certifications) of the drone operators.
• Pricing Considerations: The premium for this endorsement will be influenced by the assessed risk. Factors include the drone's capabilities, the operational environment, pilot expertise, and the desired liability limits.
• Identifying Coverage Gaps: Agents should ensure that the operations described in the schedule accurately reflect the full scope of the insured’s intended drone usage. It's important to discuss potential gaps if drones are used for activities not listed. This endorsement addresses liability; separate coverage (e.g., via inland marine forms like IH 99 29 or IH 00 61) is typically needed for physical damage to the drone itself.
• Accuracy in Scheduling: Precise and comprehensive descriptions of both the unmanned aircraft and their intended operations/projects in the schedule are essential. Ambiguity can lead to coverage disputes.
• Limits and Sublimits: Be mindful of any aggregate limits or specific sublimits that apply to unmanned aircraft liability, whether stated in this endorsement or elsewhere in the policy.
• Underlying and Excess Coverage: This endorsement modifies the CGL policy. It's also important to consider how this coverage interacts with any commercial umbrella or excess liability policies the insured may have (e.g., through endorsement CU 24 50).