All I want for Christmas is a drone and a hoverboard – and an insurance policy

Every holiday season brings a rush of the latest and greatest “it toys,” such as some limited edition Elmo or Star Wars anything. Rarely do these items need cautionary tags, let alone insurance.

However, drones and self-balancing electric scooters (also known as hoverboards or “Segways without a stick”) are not only causing parental worry, they have triggered discussions about insurance as a result of the safety issues and risks surrounding these hot gadgets.

Drones, officially defined as unmanned aerial vehicles, have been the source of military lore for years. More recently, they have made the crossover to commercial use. Research firms have estimated the market will grow to billions of drones within five years.

When it comes to consumer use of drones, insurance experts are raising cautionary flags on several levels. “If you are buying [a drone] for the holidays, you should contact your insurance agent,” cautioned Peter Foley, the American Insurance Association’s vice president of claims administration.

The Pennsylvania Insurance Department is one group that recently issued concerns about operating drones, as well as any content that they could obtain (many are equipped with cameras and can capture photos and data from overhead). The department said that “consumers should make sure they have insurance coverage they need before their drone takes flight.” In addition, it noted that “drones may capture private data that could be harmful or embarrassing if shared, whether intentionally or accidentally.” The department encouraged drone owners to talk to their insurer regarding privacy issues since many are still developing policies to cover liability related to privacy violations.