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	November 25, 2014
Q&A of the Week Drones on a Farm Policy A Florida subscriber recently asked the following question: Under the homeowner section of a farm policy, under personal effects it states we do not cover aircraft or their parts. Does a camera drone qualify as an aircraft? It is used to fly over the crop fields and photograph crop conditions. It is remote control operated. The policy states. 2. Under coverage B we do not cover: a. automobiles, aircraft or their parts; ANSWER: Looking at the ISO FP 00 90 10 94 (you may have a different form), this form excludes aircraft and aircraft parts and does not make any exceptions or allowances for particular types of craft. Merriam Webster Online defines "aircraft" as "a machine (such as an airplane or a helicopter) that flies through the air"; "drone" is defined as "an unmanned aircraft or ship guided by remote control or onboard computers." Therefore, drones are aircraft, and as such are excluded. There is no exception similar to the homeowners form; the homeowners policy has an exception for model or hobby aircraft not used or designed to carry people or cargo. If the insured had a homeowners policy and was not using the drone to deliver goods from one place to another, it could be covered.    Litigation Watch Additional Insured Status and Umbrella Policy The property owner's assignee brought an action against the contractor's liability insurer to recover for bad faith refusal to defend and indemnify the owner as an additional insured in connection with the assignee's bodily injury claim. This case is Lewark v. Davis Door Services, Inc., 321 P.3d 274 (Wash. App. 2014). Public Storage contracted with Davis Door to perform work at its facilities. The contract required Davis Door to maintain a commercial general liability policy that insured Public Storage during the entire progress of the work. Davis Door took out a general liability policy and an umbrella policy with American States Insurance Company. In October 2006, Davis Door performed repair work on a door at a Public Storage facility. In December 2006, Lewark attempted to open the door and injured her back. She sued Public Storage and Davis Door. Public Storage settled with Lewark and she then settled with Davis Door. However, Lewark then sued Davis Door and American States as assignee of Public Storage; Public Storage claimed it was an additional insured under the umbrella policy and American States breached the contract by failing to defend and indemnify Public Storage. The trial court dismissed Lewark's lawsuit and found that Public Storage was not an additional insured under the umbrella policy. This appeal followed. The Court of Appeals of Washington, Division 1, noted that the threshold issue in the case is whether Public Storage is an additional insured under the umbrella policy. The question turned on the additional insured language in the umbrella policy and the insurance requirement in the agreement between Public Storage and Davis Door. The agreement required the contractor to procure and maintain during the entire progress of the work a general liability policy and an umbrella policy. The umbrella policy stated that insured persons or entities included any person or organization for which an insured is required by virtue of a written contract to provide insurance, but this is only with respect to operations by or on behalf of the insured and only to the extent of the limits of insurance required by that contract.        Subscribe to FC&S FC&S Online is the unquestioned authority on insurance coverage interpretation and anlaysis for the P&C industry. FC&S offers unbiased analysis and interpretation and keeps you current on the latest ISO and AAIS revisions. Providing instant access to the very latest information, FC&S is the resource that agents, attorneys, brokers, risk managers, underwriters, and adjusters rely on to research commercial and personal lines coverage issues. • Quickly and accurately determine coverage under a policy at the time of loss • Research coverage issues and interpretations, including court cases • Access experts live to discuss specific situations • Find answers to questions based on real-world claims disputes • View and print ISO forms • Access updates on breaking litigation and bureau developments    Join Us Live! FC&S editors regularly conduct web-based demos of the service. Feel free to contact Christine Barlow, cbarlow@ SummitProNets.com, for more information. They only take 30 minutes, a small investment of time that will help you learn all that FC&S Online has to offer.    Contact Us As always, your comments and questions are welcome. Contact us at: FC&S Department Phone: 800-543-0874 Fax: 859-692-2246 Email: eAlerts@nuco.com   The Zalma Insurance Claims Library   Insurance Claims: A Comprehensive Guide The only source you'll need to successfully handle insurance claims from start to finish. More Info Construction Defects Coverage Guide Your single-source for identifying, insuring, investigating, prosecuting, and defending cases that result from construction defect claims. More Info Mold Claims Coverage Guide This guide will allow you to handle mold insurance claims and litigation resulting from mold or fungi related disputes with confidence. More Info For more information about these titles Click Here
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