The potential for filming with drones is nearly limitless. What’s more is the potential economic impact drones have. The Association for Unmanned Vehicle Systems International (AUVSI) projects the integration of drones into national airspace will be in the neighborhood of $13.6 billion the first three years while creating more than 70,000 new jobs. There’s no doubt the possibilities of drones are endless, but there’s just one problem. They’re not permitted, or more precisely, the Federal Aviation Administration (FAA) limits their commercial use in the national airspace. While many industry pros criticize how drone regulations differ for hobbyists and those operating for commercial applications, it’s important to understand that the FAA is holding true to its mission of protecting the safety of the American people in the air and on the ground.
Man playing with the drone. silhouette against the sunset sky, from Shutterstock
The potential for filming with drones is nearly limitless. What’s more is the potential economic impact drones have. The Association for Unmanned Vehicle Systems International (AUVSI) projects the integration of drones into national airspace will be in the neighborhood of $13.6 billion the first three years while creating more than 70,000 new jobs. There’s no doubt the possibilities of drones are endless, but there’s just one problem. They’re not permitted, or more precisely, the Federal Aviation Administration (FAA) limits their commercial use in the national airspace. While many industry pros criticize how drone regulations differ for hobbyists and those operating for commercial applications, it’s important to understand that the FAA is holding true to its mission of protecting the safety of the American people in the air and on the ground.
Integrating unmanned aircraft into the busiest, most complex airspace system in the world requires calculated strategies for all parties involved to benefit, which according to the FAA, is why the administration is taking a staged approach. It wasn’t until September of 2014 that the FAA—under increased pressure from Congress and the film industry—announced an exemption for six photo and video production companies, allowing them to use camera-mounted drones on closed film sets. The action commenced immediately and the entertainment industry confidently injected aerial video and photography within production. With this scenario as evidence, doors are being opened for drone operators, and with patience and persistence, many are hopeful that the right—and realistic—policies, regulations and guidelines will be put in place.
The Show Must Go On
While film industry pros continue to monitor FAA’s policies related to drones, there may not be more clarity around what you can and cannot do until 2017. As anyone in entertainment knows though, the show must go on and those who aren’t compliant with the latest regulations now may have a tough time landing their next job or shooting a production on time and on budget. This is where the 333 exemption comes in. To fly drones legally for commercial use, the operator must have FAA authorization via a Section 333 grant of exemption.
In early 2015, it’s estimated that only about a dozen companies had received 333 exemption, but now the number has skyrocketed to more than 2,200 approved exemptions. For a technology as viable as drones, don’t be left behind or take short cuts around drone compliance. Here’s what film pros should keep in mind in regard to the 333 exemption:
- FAA 333 Exemption Description—per the FAA, by law, any aircraft operating in the national airspace requires a certificated and registered aircraft, a licensed pilot, and operational approval. Section 333 of the FAA Modernization and Reform Act of 2012 (FMRA) grants the Secretary of Transportation the authority to determine whether an airworthiness certificate is required for an unmanned aircraft system (UAS) to operate safely in the National Airspace System (NAS). Companies or independent contractors may apply for 333 exemption.
- Pilot License—under section 333, a licensed pilot is responsible for either flying the drone or monitoring the operator controlling the unmanned aircraft. The company itself that holds the 333 exemption does not need to be a licensed pilot; however the entity is responsible for ensuring a company employee or contractor overseeing drone operation satisfies the FAA licensed pilot requirement.
- Plan Ahead—a petitioner requesting 333 exemption is advised by the FAA to make the request 120 days prior to the date of operations.
- Understand Authorizations Granted—receiving 333 exemption does not mean operators can fly drones anywhere under the sun. Each exemption will provide a specific list of approvals and guidelines.
- Know Your Insurance Policy—after receiving 333 exemption, drone operators are advised to update insurance policies for coverage of drone use in the film and live media industries.
Staying Insured in Uncharted Territories
Whether a live event or film set, there are a number of risks and liabilities that come with drone operation. Unmanned aircrafts’ disruption has been particularly acute in the entertainment industry. This can range from contractual liability, geo-property damage when drones crash, in-flight drones injuring talent and staff in its path, operators getting hurt and more. Many remember when pop singer Enrique Iglesias grabbed a camera drone during one of his summer shows, slicing open several fingers and fracturing his hand. This resulted in reconstructive surgery and several weeks of recovery. All aspects of entertainment production require the right coverage and with situations such as this, it is no surprise that drones are no exception.
The insurance industry is acting to ensure that appropriate coverage for drone operators is in place across industries, including entertainment. ProSight Specialty Insurance, for one, announced a comprehensive new offering for drone operators designed to go beyond the industry standard. The proprietary program for drone operators redefines “aircraft” to eliminate the exclusion for specified drones. In addition, drone operators have access to a policy that covers various operations such as filming, rental, events, agriculture and non-flight-related exposures. In the same way drones are used to capture the most unique views, companies such as ProSight are aiming to elevate drone operators with coverage and expertise designed to meet the challenges these pros face every day.
When shopping for insurance, approach brokers or agents that will help navigate drone compliance. The right carrier should provide direction on 333 exemption and caution against drone operation without it. No drone project is too small for insurance and if any coverage is in question, it’s worth making a call to the right insurance provider for guidance.
The Flight Path
Drones are transforming filmmaking. The skies have become much friendlier for filmmakers and production companies shooting with drones. Until further clarity on FAA regulations is provided, take advantage of 333 exemption applications, get the right coverage and stay informed on FAA drone news. The future is bright and it’s an exciting time to be along for the ride.
Kevin Topper is the global president for ProSight’s Film and Live Media niches. He is responsible for the underwriting, business development, innovation and distribution management of diversified books of business in the entertainment segment. Mr. Topper started working in the entertainment insurance industry in the mid ‘80s, and previously served as the chief underwriting officer of Travelers Encore Entertainment, where he was responsible for the development of national underwriting strategies and management of an entertainment underwriting team. Earlier in his career, Mr. Topper led and worked for various other entertainment insurance divisions of companies including AIG, Entertainment Specialty Insurance Services, and Reliance and Gulf. He has a bachelor’s degree from the University of Wisconsin.