What Do Marine Contractors Need To Know About Insuring Underwater Drone Operations?

The increasing use of underwater drones in marine construction improves inspections and project monitoring and, in turn, affects marine contractor insurance. 

Although these technologies enhance efficiency, reduce reliance on divers, and provide better oversight of underwater projects, insurance agents must understand their risks to help marine contractors secure proper coverage.

How Marine Contractors Use Underwater Drones

Marine contractors rely on underwater drones for various tasks, including: 

• Pre-construction surveys: Collecting data on underwater terrain, sediment stability, and potential obstructions before starting construction  
• Project monitoring: Providing real-time visuals to track construction progress, identify issues, and guarantee structural integrity  
• Post-construction inspections: Examining completed structures for defects and detecting early signs of wear  
• Environmental impact assessments: Measuring water quality, monitoring marine habitats, and identifying ecological disturbances caused by construction

Insurance Risks and Liability Considerations

Marine contractors using underwater drones must account for various insurance risks and liability concerns to protect their operations and assets.  

• Equipment damage and loss: Exposure to harsh underwater conditions, collisions, or technical failures can result in costly repairs or replacements.  
• Cybersecurity risks: Unauthorized access to drone systems may compromise sensitive project data or disrupt operations.  
• Professional liability exposure: Inaccurate survey data or faulty inspections could lead to legal disputes or financial losses.  
• Regulatory compliance: Adhering to maritime laws and safety standards is essential to avoid fines or project delays.  
• Property damage and third-party liability: Accidental damage to marine structures, vessels, or underwater utilities may result in liability claims.

How Marine Contractor Insurance Covers Underwater Drone Operations

Marine contractor insurance includes specialized coverage to mitigate risks associated with underwater drone operations.  

• Marine general liability: Covers third-party injuries or property damage resulting from drone use  
• Marine contractors liability: Protects against claims related to structural damage caused by drones 
• Inland marine insurance with waterborne coverage: Safeguards drones and associated equipment from theft, damage, or loss  
• Professional liability (errors and omissions): Covers legal claims arising from inaccurate drone survey data or misinterpretations  
• Cyber liability insurance: Shields against data breaches, hacking incidents, and unauthorized system access
• Bumbershoot (excess liability): Extends coverage beyond standard policy limits for drone-related liabilities

Best Practices for Marine Contractors Using Underwater Drones

Marine contractors can enhance safety, efficiency, and compliance by following best practices for underwater drone operations. Routine maintenance and inspections are essential, requiring regular checks for wear, battery life, and software updates to ensure optimal performance. Comprehensive training is also critical, as operators must be educated on proper drone usage, troubleshooting, and accurate data collection. 

Additionally, contractors should adhere to regulatory compliance checklists to confirm they meet maritime, environmental, and aviation regulations. Protecting sensitive project data is another priority, requiring data security protocols such as encryption, secure servers, and restricted access. Finally, having a well-structured incident response plan in place ensures preparedness for equipment failures, accidents, and liability management, minimizing risks and disruptions.

How Insurance Agents Can Help Marine Contractors

Insurance agents play a crucial role in helping marine contractors secure the right coverage and manage risks. A key part of this process is assessing coverage needs by evaluating existing policies to identify potential gaps. 

Agents can also customize policies for drone operations, checking that coverage addresses equipment damage, liability concerns, and cybersecurity risks. Beyond policy structuring, insurance professionals can educate clients on risk management by advising them on best practices for safety, regulatory compliance, and minimizing claims. 

Additionally, staying updated on industry regulations and trends allows agents to keep contractors informed about changing laws and evolving insurance requirements. This added guidance can help marine contractors maintain compliance and financial security.

Planning for the Future

Protect your client’s business from the unique risks of underwater drone operations with tailored marine contractor insurance. Merrimac Marine Insurance offers specialized coverage for liability, equipment protection, and cybersecurity threats. Contact us today to safeguard your clients’ operations with policies designed for the future of marine construction.

About Merrimac Marine Insurance

At Merrimac Marine, we are dedicated to providing insurance for the marine industry to protect your clients’ businesses and assets. For more information about our products and programs, contact our specialists today at (800) 681-1998.