The AMA insurance liason, Ilona Maine, has identified model aircraft used in manufacturer demos and sponsored pilots to be commercial uses and not covered by AMA insurance.
"You asked if a noon-time flight demo for the purposes of promoting the future sales of a RC product constitutes a "commercial purpose" as it pertains to AMA’s insurance.
The Westchester liability policy has a specific exclusion for commercial enterprises and/or business pursuit for individual members. The policy does not provide coverage for any business entity. Whether or not noon-time demo flights fit into the business pursuit is difficult to determine and there is no “one answer fits all” response. As with any other claim, final determination would be up to a claims adjuster/insurance company based on the specifics of each individual claim. The situation is obviously a bit more transparent when a major manufacturer holds a noon-time demo utilizing their own employees as the manufacturer's insurance would apply. Generally, when we receive inquiries regarding sponsored (non-employed) pilots doing demo flights for manufacturers/distributors, we advise that they should not rely on AMA coverage. We cannot guarantee that the policy would respond and we don't want anyone to be caught by surprise in case of an accident. "
Since they consider them commercial use does that not mean they need to follow the current FAA regulations for commercial sUAS like everyone else?
Shouldn't they have to get experimental CoAs like any other commercial sUAS user?
By allowing commercial activities , although not covering them with insurance, aren't they aiding and abetting criminals?