# Insurance A comprehensive guide to the insurance policies of Texas Drone Company # TDC Insurance # Index [Current Coverage](https://wiki.txdroneco.com/books/insurance/page/current-coverage)[Coverage Database](https://wiki.txdroneco.com/books/insurance/page/coverage-database)\# TDC Insurance Reference Wiki This wiki section is the operating reference for Texas Drone Company’s insurance policies, COI requests, contractor insurance requirements, and insurance-related terms. ## Pages - [Current Coverages](https://wiki.txdroneco.com/books/insurance/page/current-coverage) - [Coverage Database](https://wiki.txdroneco.com/books/insurance/page/coverage-database) - [COI Request Log](https://wiki.txdroneco.com/books/insurance/page/coi-request-log) - [COI Checklist](https://wiki.txdroneco.com/books/insurance/page/coi-checklist) - [Insurance Glossary](https://wiki.txdroneco.com/books/insurance/page/insurance-glossary) - [Broker Questions](https://wiki.txdroneco.com/books/insurance/page/new-page) ## Operating Principle Insurance should be managed as a business control, not as a one-off administrative task. The goal is to know what we carry, know what customers are asking for, know where our gaps are, and make ROI-based decisions on whether to increase coverage. ## Owner Primary owner: Administration / Leadership Supporting owner: Broker / Agent ## Update Cadence - At policy renewal - When a COI is requested - When a contractor asks for coverage above current limits - When a written waiver or exception is granted - When a new line of business changes the company’s risk profile # Current Coverage # Texas Drone Company Insurance Reference Matrix Single source of truth for current policies, limits, contacts, expiration dates, and COI notes. > Owner: Administration / Leadership > Update frequency: At every renewal, every new COI request, and every contractor insurance exception. ## How to Use This Page Use this page as the company’s internal source of truth before responding to customer insurance requests, issuing COIs, signing subcontract insurance terms, or evaluating whether a new coverage is worth buying. ## Required Internal Rules - Do not answer customer insurance questions from memory. Verify against this page and the current COI. - Do not agree to higher limits, additional insured wording, waiver of subrogation, or primary/non-contributory language unless the broker confirms the policy supports it. - If a contractor accepts coverage below its standard requirement, save the written approval and log it in the COI Request Log. - Update policy numbers, expiration dates, brokers, carriers, deductibles, and endorsements immediately after every renewal. ## Quick Current Coverage Snapshot | Coverage Category | Policy / Coverage | Plain-English Description | Current Limit / Status | Coverage Status | Insurer / Carrier | Broker / Agent | Policy # | Effective Date | Expiration Date | Deductible / SIR | Key Endorsements / Requirements | COI Notes | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Employee Injury | Workers' Compensation | Pays statutory benefits for employee injuries/illnesses arising from work. | In place / statutory | Confirmed | TBD | TBD | TBD | TBD | TBD | TBD | Waiver of subrogation may be requested by contractors. | Confirm WC appears on COI. | | Employee Injury | Employer's Liability | Part Two of most workers' comp policies. Protects the company if an employee injury becomes an employer liability lawsuit. | Limit TBD | Needs Confirmation | TBD | TBD | TBD | TBD | TBD | TBD | Often requested as $1M or $2M each accident/disease limits. | Confirm limits on WC policy/COI. | | General Business Liability | Commercial General Liability (CGL) | Covers third-party bodily injury, property damage, products/completed operations, and contractual liability exposures. | $1M per occurrence / $2M aggregate | Confirmed | TBD | TBD | TBD | TBD | TBD | TBD | Additional insured, primary & non-contributory, and waiver of subrogation may be requested. | This is the standard COI line most contractors check first. | | Aviation / Drone Operations | Aviation / UAS Liability | Covers drone-related third-party bodily injury and property damage. This is the most important policy for flight operations. | $2M per occurrence | Confirmed | TBD | TBD | TBD | TBD | TBD | TBD | Confirm whether aggregate limit applies; confirm additional insured and waiver options. | Should specifically reference unmanned aircraft/UAS operations when requested. | | Vehicles | Commercial Auto Liability | Covers company vehicles and related auto liability. Some contracts also require hired and non-owned auto coverage. | $1M combined single limit | Confirmed | TBD | TBD | TBD | TBD | TBD | TBD | Confirm owned, hired, and non-owned auto status. | Often requested as $1M or $2M CSL. | | Excess Liability | Umbrella / Excess Liability | Provides additional limits above CGL, auto, and sometimes employer's liability. Often required by large industrial contractors. | None | Not Carried | N/A | TBD | N/A | N/A | N/A | N/A | Could be added annually or project-specific if ROI supports it. | No umbrella currently available for COI. | | Professional Services | Professional Liability / E&O | Covers claims that professional advice, data, measurements, mapping, reports, or deliverables caused financial loss. | Unknown / TBD | Needs Decision | TBD | TBD | TBD | TBD | TBD | TBD | Important for mapping, measurement, volumes, data processing, and reporting work. | Not always shown unless specifically carried. | | Equipment | Inland Marine / Equipment Floater | Covers drones, cameras, laptops, sensors, payloads, and equipment while in transit, in the field, or offsite. | Unknown / TBD | Needs Confirmation | TBD | TBD | TBD | TBD | TBD | TBD | Schedule high-value equipment; verify theft-from-vehicle limitations. | May not be required by contractors but is operationally important. | | Office / Property | Commercial Property / Business Personal Property | Covers office contents, computers, fixtures, and business personal property at scheduled locations. | Unknown / TBD | Needs Confirmation | TBD | TBD | TBD | TBD | TBD | TBD | Confirm off-premises coverage exclusions. | Usually internal risk management, not contractor-driven. | | Cyber / Data | Cyber Liability | Covers cyber incidents, data breach response, ransomware, funds transfer fraud, and certain privacy/security claims. | Unknown / TBD | Needs Decision | TBD | TBD | TBD | TBD | TBD | TBD | Increasingly relevant as deliverables, portals, and customer data are stored online. | May be requested by enterprise customers. | # Coverage Database # Insurance Coverage Database Common coverages a drone services / data company may carry. Use this to identify gaps and make renewal decisions. ## Coverage Reference Database | Coverage Type | Priority | Typical for TDC? | What It Covers | Why It Matters | Common Limits / Notes | Typical Requested By | Do We Carry? | Recommended Action | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Workers' Compensation | Required | Yes | Employee medical/lost wage benefits for work-related injury or illness. | Required for employee-based field operations and many contractor prequalifications. | Statutory by state. | Most industrial/construction customers | Yes | Maintain and keep certificates current. | | Employer's Liability | Required | Yes | Employer lawsuit exposure related to employee injuries, usually tied to workers' comp. | Often appears right below workers' comp on COIs. | Common limits: $1M each accident/disease; large contractors may ask for $2M. | Industrial/construction customers | TBD | Confirm current limits with broker. | | Commercial General Liability | Required | Yes | Third-party bodily injury, property damage, products/completed operations, contractual liability. | Baseline business liability and common customer requirement. | Common: $1M occurrence / $2M aggregate; larger contracts may request $5M. | Nearly all commercial customers | Yes | Confirm endorsements: additional insured, waiver, primary/non-contributory. | | Aviation / UAS Liability | Required | Yes | Drone-related third-party liability from flight operations. | CGL often excludes aviation exposures; this protects the core flight risk. | $1M-$5M common; higher for industrial/utility/energy work. | Industrial, construction, utilities, municipalities | Yes | Confirm aggregate, covered aircraft, pilots, payloads, and additional insured wording. | | Commercial Auto Liability | Required | Yes | Liability from company vehicles and jobsite travel. | Vehicle risk is a major field operations exposure. | $1M CSL common; $2M requested by some contractors. | Construction/industrial customers | Yes | Confirm hired and non-owned auto coverage. | | Hired & Non-Owned Auto | High | Yes | Liability when employees use personal/rented vehicles for business. | Useful when employees drive personal vehicles to jobs or rent vehicles. | Often included by endorsement under auto or CGL. | Customers with site access requirements | TBD | Confirm included in auto policy. | | Umbrella / Excess Liability | High | Maybe | Additional limits above underlying policies. | Often required by larger contractors, but ROI depends on how often it unlocks work. | $1M, $2M, $5M, $10M common tiers. | Large industrial, utility, energy, general contractors | No | Get annual quotes and track customer requests before buying. | | Professional Liability / E&O | High | Likely | Claims arising from errors in professional services, data, maps, measurements, volumes, reports, or advice. | Important as TDC sells data deliverables, stockpile reports, topo products, and processing services. | $1M-$2M common for small professional firms. | Engineering, survey-adjacent, enterprise customers | TBD | Request drone/geospatial-specific E&O quote. | | Technology E&O | Medium | Maybe | Claims from software/platform failures, data processing errors, or hosted technology services. | Relevant to Drone Service Pro, client portals, and automated processing/reporting products. | Often paired with cyber. | SaaS customers, enterprise buyers | TBD | Evaluate for Drone Service Pro separately from service company. | | Cyber Liability | Medium | Likely | Breach response, ransomware, data loss, privacy claims, funds transfer fraud. | Growing risk as deliverables, customer data, portals, and payment systems move online. | $1M common starting point. | Enterprise customers, SaaS customers | TBD | Quote cyber coverage and evaluate controls requirements. | | Inland Marine / Equipment Floater | High | Yes | Drones, payloads, cameras, sensors, laptops, and equipment in transit/offsite. | Protects expensive field equipment that may not be covered by property policy. | Schedule high-value items; confirm theft-from-vehicle limits. | Internal risk management | TBD | Build equipment schedule and confirm coverage/deductibles. | | Drone Hull Coverage | Medium | Maybe | Physical damage to specific drones/payloads. | Useful for high-value aircraft/payloads but premiums can be high. | Often scheduled per aircraft/payload. | Internal risk management | TBD | Evaluate based on replacement cost and loss history. | | Commercial Property / BPP | Medium | Yes | Office contents and business personal property at scheduled locations. | Protects office assets, computers, fixtures, and inventory. | Limits based on replacement value. | Landlord/lender/internal | TBD | Confirm property/BOP coverage. | | Business Interruption | Medium | Maybe | Lost income and extra expense from a covered property loss. | Important if an office/equipment loss disrupts operations. | Often tied to property coverage. | Internal/lenders | TBD | Evaluate after property coverage is confirmed. | | Employment Practices Liability (EPLI) | Medium | Yes as team grows | Wrongful termination, discrimination, harassment, retaliation claims. | More important as employee count and management layers grow. | $1M common starting point. | Internal risk management | TBD | Quote as employee count grows. | | Crime / Employee Dishonesty | Medium | Maybe | Employee theft, forgery, funds transfer fraud, social engineering depending on policy. | Useful for small companies with payments, cards, and equipment access. | Limits vary widely; social engineering often sublimited. | Internal/finance | TBD | Evaluate with cyber/fidelity package. | | Media Liability | Low-Medium | Maybe | Claims from published media: copyright, defamation, privacy, likeness, advertising injury gaps. | Relevant to creative/video work and client-published marketing assets. | May be part of E&O or specialty media policy. | Creative clients/agencies | TBD | Ask broker whether CGL/E&O covers media work. | | Pollution Liability | Low | Rare | Pollution cleanup/third-party environmental claims. | Usually not central to drone services unless working with hazardous sites or causing spill-related claims. | Can be project-specific. | Industrial sites | No | Only quote if contract requires it. | | Directors & Officers (D&O) | Low | Maybe later | Claims against company leadership by investors, lenders, or stakeholders. | More relevant with outside investors, board, or fundraising. | $1M+ common. | Investors/lenders | No | Not urgent unless ownership/financing changes. | | Key Person Life / Disability | Strategic | Yes for owner-led business | Protects business continuity if a critical owner/leader dies or becomes disabled. | TDC is owner-led; this is continuity and lender-risk planning more than customer compliance. | Limit based on debt, payroll runway, and transition needs. | Internal/lenders | TBD | Consider as part of continuity planning. | ## Decision Guidance - **Required** coverages should be maintained continuously and kept COI-ready. - **High** priority coverages should be reviewed at renewal and whenever a customer request reveals a repeat gap. - **Medium** priority coverages should be evaluated based on growth, new services, and customer requirements. - **Low** priority coverages should generally be quoted only if a specific contract requires them. ## COO Rule Track demand before buying expensive coverage. If a missing policy repeatedly blocks profitable work, buy it. If it only appears once and the customer accepts a waiver, document the exception and move on. # COI Request Log # Contractor Insurance Request Log Track every insurance request, gap, waiver, and written approval. ## Log Template | Date Received | Customer / Contractor | Project | Requested Coverage / Clause | Requested Limit / Wording | TDC Current Coverage | Gap? | Waiver / Exception Granted? | Written Approval Location | COI Sent Date | Internal Owner | Next Action | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ## Logging Instructions - Create one row for each customer, contractor, or project insurance request. - Attach or link the contract insurance exhibit, COI request email, broker response, issued COI, and any written exception. - Mark a gap only as resolved when either the broker confirms coverage or the customer confirms written acceptance of the current coverage. # COI Checklist # COI and Contract Insurance Checklist Use before signing contracts or sending certificates. ## Checklist | Step | Question | Why It Matters | Answer / Notes | Owner | Status | Due Date | Evidence Location | | --- | --- | --- | --- | --- | --- | --- | --- | | 1 | Do the contract insurance limits match our actual policies? | Prevents signing a contract that puts TDC in technical breach. | | | Not Started | | | | 2 | Are additional insured endorsements required? | Common contractor requirement; must be supported by policy wording. | | | Not Started | | | | 3 | Is waiver of subrogation required? | Broker must confirm it can be added for each applicable policy. | | | Not Started | | | | 4 | Is primary and non-contributory wording required? | Large contractors often require it on CGL/auto/aviation. | | | Not Started | | | | 5 | Is umbrella/excess liability required? | TDC currently carries no umbrella; this must be waived or quoted. | | | Not Started | | | | 6 | Is professional liability/E&O required? | Could matter for mapping, volumes, data processing, or reporting work. | | | Not Started | | | | 7 | Is aviation/UAS specifically accepted? | Drone work should not be treated as normal CGL-only field work. | | | Not Started | | | | 8 | Are covered aircraft, pilots, and payloads listed correctly? | Avoids coverage issues if a drone/payload is not scheduled or approved. | | | Not Started | | | | 9 | Does the COI include correct certificate holder and project wording? | Contractors may reject COIs with incorrect names or addresses. | | | Not Started | | | | 10 | If there is a gap, do we have written acceptance or a contract revision? | Verbal approval is not enough; keep evidence in the file. | | | Not Started | | | | 11 | Are policy expirations after the project duration? | Long projects may require renewal COIs mid-project. | | | Not Started | | | | 12 | Have insurance costs been priced into the job? | Project-specific endorsements or higher limits should not quietly eat margin. | | | Not Started | | | ## Completion Standard This checklist is complete only when the contract requirements, COI, broker confirmation, and any customer-approved exceptions all match. Verbal approval is not enough. # Insurance Glossary # Insurance Glossary Plain-English definitions for common contractor insurance terms. ## Additional Insured **Plain-English meaning:** Another party, usually customer/contractor/owner, is added to receive certain protection under your policy. **Why TDC cares:** Common requirement before entering jobsites. **Typical action:** Ask broker to add certificate holder as additional insured where available. ## Waiver of Subrogation **Plain-English meaning:** Your insurer agrees not to seek recovery from the customer/contractor after paying a covered claim. **Why TDC cares:** Contractors want to prevent your insurer from coming back against them. **Typical action:** Confirm policy endorsement and cost with broker. ## Primary and Non-Contributory **Plain-English meaning:** Your policy responds first and does not require the customer's insurance to contribute first. **Why TDC cares:** Large contractors use this to keep claims off their own insurance where possible. **Typical action:** Broker must confirm endorsement wording. ## Occurrence Limit **Plain-English meaning:** Maximum paid for one claim/event. **Why TDC cares:** Contractors compare this to their required per-occurrence limit. **Typical action:** Check exact amount on COI. ## Aggregate Limit **Plain-English meaning:** Maximum paid during the policy period for covered claims. **Why TDC cares:** A $1M occurrence policy may have a $2M aggregate cap. **Typical action:** Monitor aggregate erosion after claims. ## Combined Single Limit (CSL) **Plain-English meaning:** One auto liability limit shared for bodily injury and property damage. **Why TDC cares:** Common auto policy limit format. **Typical action:** Usually shown as $1M CSL or $2M CSL. ## Deductible **Plain-English meaning:** Amount TDC pays before insurance responds. **Why TDC cares:** Affects cash exposure after a claim. **Typical action:** Track by policy, especially equipment and cyber. ## Self-Insured Retention (SIR) **Plain-English meaning:** Amount TDC must pay/handle before insurer has duty to pay, often more serious than deductible. **Why TDC cares:** Can create administrative and cash-flow burden. **Typical action:** Avoid surprises on E&O/cyber/umbrella policies. ## Contractual Liability **Plain-English meaning:** Coverage for certain liabilities assumed in a contract. **Why TDC cares:** Construction contracts often include broad indemnity clauses. **Typical action:** Do not assume every indemnity obligation is insured. ## Completed Operations **Plain-English meaning:** Coverage for liability arising after work is completed. **Why TDC cares:** Relevant when deliverables or completed site work are later challenged. **Typical action:** Confirm CGL includes completed operations. ## Professional Liability / E&O **Plain-English meaning:** Coverage for financial loss caused by alleged professional mistakes. **Why TDC cares:** Relevant for mapping, measurements, volumes, reports, processing, and advice. **Typical action:** Consider quote; avoid using licensed survey language publicly. ## Inland Marine **Plain-English meaning:** Property coverage for equipment that moves around. **Why TDC cares:** Drones, payloads, sensors, cameras, and laptops are mobile assets. **Typical action:** Maintain current equipment schedule. ## Certificate Holder **Plain-English meaning:** Entity named on the COI to receive proof of insurance. **Why TDC cares:** Does not automatically make them additional insured. **Typical action:** Use exact legal name/address from customer. ## Endorsement **Plain-English meaning:** Policy amendment that changes coverage or adds required wording. **Why TDC cares:** COIs sometimes reference endorsements; actual policy controls. **Typical action:** Ask broker for endorsement confirmation if needed. ## Umbrella / Excess **Plain-English meaning:** Extra limit above underlying policies. **Why TDC cares:** Often requested in large contracts; not always necessary for small work. **Typical action:** Track frequency of requests and ROI. # Broker Questions # Broker Renewal and Gap Questions Use this list with your broker at renewal or when a large contractor sends insurance requirements. ## Questions for Broker | Topic | Question for Broker | Why We Ask | Broker Answer | Follow-up Needed | Priority | Owner | | --- | --- | --- | --- | --- | --- | --- | | Workers' Comp / Employer's Liability | What are our current Employer's Liability limits? Can they be increased to $2M if required? | Large contractors often request this. | | | High | Admin | | CGL | Do we have blanket additional insured, waiver of subrogation, and primary/non-contributory endorsements? | These are the three most common contract wording requests. | | | High | Admin | | Aviation/UAS | Can aviation policy name customers as additional insured and provide waiver of subrogation? | Drone work must be supported by aviation coverage, not just CGL. | | | High | Admin | | Aviation/UAS | Is our $2M aviation limit per occurrence only, or is there an aggregate? | Some contracts list both per occurrence and aggregate limits. | | | High | Admin | | Auto | Does our auto policy include owned, hired, and non-owned auto? | Employees may use company, personal, or rented vehicles for work. | | | High | Admin | | Umbrella | Quote $1M, $2M, $5M, and $10M umbrella/excess options. Which underlying policies can they sit over? | Lets leadership make ROI-based decision. | | | Medium | Leadership | | Professional Liability / E&O | Quote E&O for drone mapping, stockpile volumes, data processing, and deliverable reports. | TDC increasingly sells data products, not just images. | | | High | Leadership | | Cyber | Quote cyber liability for client portals, stored data, email compromise, and payment fraud. | Cyber exposure grows with portals, SaaS, and online deliverables. | | | Medium | Leadership/IT | | Inland Marine | Confirm covered equipment, deductibles, theft-from-vehicle limitations, and replacement cost terms. | Drones and sensors are mission-critical mobile assets. | | | High | Admin | | Contract Review | When we receive customer insurance requirements, can broker review against our current coverage before we sign? | Prevents accidental breach and uninsured obligations. | | | High | Admin | ## How to Use Use this page before renewal, before signing a large contractor agreement, or when a customer’s insurance exhibit includes terms that do not appear on the standard COI.