EX:15T H E E X C E L L E N C E I S S U E

WMAKEEight Entrepreneurs at the Top of Their Game; Marijuana for the 1 Percent; The Boom in Space Mining

GROWThree Crucial Trends in Finance; Lessons in Philanthropy 2015; Upstarts and Icons in Investing

LIVEThe Best of 2015 in Cars, Watches, Travel and More; New Hope for Rare Diseases; Seven Masters of Luxury

T H E E V O L U T I O N O F F I N A N C I A L I N T E L L I G E N C E

®

V O L U M E 2 4 | E D I T I O N 0 6

39W O R T H . C O M

WO39_Cover_REV2.indd 1 11/5/15 5:40 PM

NFP P&C Private Client GroupSharon Kauls, Vice PresidentRyan Benner, Vice President

Los Angeles, CA Leading Insurance Advisor

By NFP P&C Private Client Group

Drones and personal liability: What do I need to know?

A few years ago, any mention of drones would conjure up visions of military surveillance aircraft. Not so today! Drones are being used for everything from agricultural surveys and retail delivery to real estate photography.

According to market researcher Radiant Insights, revenue from the consumer drone market is expected to soar from $609 million (2014) to $4.8 billion by the end of the decade. This growth in popularity has caused concerns over privacy and safety, so much so that in 2013 Con-gress directed the Federal Aviation Administration (FAA) to enact drone regulations.1 The FAA made safety its top priority, but privacy is also high on the list of concerns.

Some states have, or are in the process of, enacted laws that make it unlawful to use a drone to conduct surveillance, harass or photograph people without their consent.2 Also being discussed is legislation to restrict the use of drones from inter-fering with emergency, police and firefighting operations.

THE RISKSAs risk management and insurance professionals, we look for evolving risks that may affect clients. Then we provide education and solutions

to mitigate risk and financial impact. There are three main types of con-sumer risks regarding drones:

• Bodily injury can happen through direct injury to a person by a drone, or indirect injury, when a drone causes an event such as a car accident or manned aircraft collision.

• Property damage is direct dam-age caused by a drone or an event triggered by a drone. For example, one might hit a power line causing a brush fire that destroys homes. Also included here is property damage exacerbated by a drone, e.g., inter-ference with firefighting personnel, hindering the containment of a fire that goes on to damage property. Earlier this year, fire crews were forced to ground water-dropping aircraft because of drones. Those aircraft had been targeting flames that burned 36,000 acres in South-ern California.

• Personal injury includes the invasion of privacy when a drone photographs someone where there is an expectation of privacy, and the unauthorized use of photographs taken of people, buildings, or trade-protected images.

HOW TO PREVENT OR MITIGATE LOSSDrone enthusiasts can take several

steps to avoid liability:• Be aware of and comply with fed-

eral, state and local laws that govern the use and operation of drones.

• Know who is using a drone and his or her experience level.

• Enforce safe practices with chil-dren operating drones.

HOW INSURANCE CAN PROTECT YOUHomeowners and personal umbrella policies can vary in contract language, so always discuss your specific pol-icy with your broker or agent.

Review your policy annually for changes in contract wording that could restrict or exclude coverage. Policies usually contain liability exclusions for expected or intended injury, even if the injury or damage that occurs is of a different type or severity than expected. Fortunately, the Clinton, Conn., teen arrested for building a gun-firing drone didn’t injure anyone. If he had, the ques-tion is, would that type of liability have been expected or covered?

THE BOTTOM LINEDrones are becoming more common all the time. Make sure you know the laws, practice safety and talk to your insurance broker about your coverage needs.

1FAA Modernization and Reform Act of 20122In 2015, 45 states have so far considered 164 bills related to drones. Nineteen states—Arkansas, Florida, Hawaii, Illinois, Louisiana, Maine, Maryland, Michigan, Mississippi, Nevada, New Hampshire, North Carolina, North Dakota, Oregon, Tennessee, Texas, Utah, Virginia and West Virginia—have passed legislation. Four other states—Alaska, Georgia, New Mexico and Rhode Island—have adopted resolutions related to drones.

Insurance services provided through NFP Property & Casualty Services, Inc., doing business in California as NFP Property & Casualty Insurance Services, Inc., License # 0F15715.

NFP_LA_WOR39.indd 122 11/4/15 12:25 PM

NF

P P

&C

PR

IVA

TE

CL

IEN

T G

RO

UP

How to reach NFP P&C Private Client Group

We would be pleased to hear from you. Please call us at 805.297.8182.

LIV

EG

RO

WM

AK

E

NFP P&C Private Client Group 444 South Flower Street, Suite 4200, Los Angeles, CA 90071 805.297.8182

ILL

US

TR

AT

ION

BY

KE

VIN

SP

RO

UL

S

Largest Client Net Worth $5+ billion

Insurance Services Experience Kauls, 33 years; Benner, 15 years

Website www.nfp.com/privateclient

Email sharon.kauls@nfp.comryan.benner@nfp.com

NFP P&C Private Client Group is a personal lines insurance agency headquartered in New York City, with offices across the country. The agency specializes in personal insurance, ranging from homeowners and automobile insurance to specialty lines, such as coverage for yachts, aircraft, fine art and antique cars. NFP has agency appointments with a number of leading insurance markets, including ACE, AIG, Chubb and PURE. Sharon Kauls, vice president, is a risk management and insurance professional, working with high net worth families to develop and implement insurance programs designed to complement their wealth preservation strategy. Ms. Kauls has particular expertise with residential construction projects, from guiding clients through the contract requirements, to placing large property programs during the project. Her professional designations include certified insurance counselor, certified risk manager, construction risk and insurance specialist, and accredited advisor in insurance. Ryan Benner, vice president, started his insurance career more than 15 years ago. After several years on the carrier side, he narrowed his focus to the high net worth space. He is experienced in identifying and illustrating the importance of well-conceived risk management programs for high net worth individuals and families. Mr. Benner holds an MBA from Loyola Marymount University and earned his BA in marketing from Loyola Marymount University’s College of Business Administration.

About NFP P&C Private Client Group

Sharon KaulsRyan Benner

123W O R T H . C O M D E C E M B E R 2 0 1 5 - J A N U A R Y 2 0 1 6

“This growth in [drones’] popularity has caused concerns over privacy and safety.”—NFP P&C Private Client Group

NFP_LA_WOR39.indd 123 11/4/15 12:25 PM

the evolution of financial intelligence

R E P R I N T E D F R O M

®

NFP P&C Private Client Group is featured in Worth® 2016 Leading Wealth Advisors™, a special section in every edition of Worth® magazine. All persons and firms appearing in this section have completed questionnaires, have been vetted by an advisory group following submission by Worth®, and thereafter paid the standard fees to Worth® to be featured in this section. The information contained herein is for informational purposes, and although the list of advisors presented in this section is drawn from sources believed to be reliable and independently reviewed, the accuracy or completeness of this information is not guaranteed. No person or firm listed in this section should be construed as an endorsement by Worth®, and Worth® will not be responsible for the performance, acts or omissions of any such advisor. It should not be assumed that the past performance of any advisors featured in this special section will equal or be an indicator of future performance. Worth®, a publication of the Worth Group LLC, is a financial publisher and does not recommend or endorse investment, legal or tax advisors, investment strategies or particular investments. Those seeking specific investment advice should consider a qualified and licensed investment professional. Worth® is a registered trademark of the Worth Group LLC.

Sharon Kauls Vice President

Ryan Benner Vice President

NFP P&C Private Client Group444 South Flower Street, Suite 4200

Los Angeles, CA 90071Tel. 805.297.8182

sharon.kauls@nfp.comryan.benner@nfp.com

www.nfp.com/privateclient