For commercial drone pilots, drone insurance can certainly be a safeguard for you, your business, your clients and your actual drones and other equipment (like fancy thermal cameras). But it’s not actually a Federal Aviation Administration requirement to hold drone insurance. So do you really need drone insurance anyway? .
But if you’re launching (or already have a drone business), or even you just want to protect yourself (and your expensive drone gear) if something goes wrong, then drone insurance can be critical.
A growing need for drone insurance
Real estate agents use drones to capture sweeping views of properties. Construction firms rely on them for site surveys. Filmmakers incorporate them for breathtaking aerial shots. The list goes on. But alongside their benefits comes the inevitable question: what happens if something goes wrong?
The key benefit of drone insurance largely stems from protecting you and others from damage. Imagine your drone malfunctions mid-flight and crashes into a parked car, shattering the windshield. Or worse, it injures someone. Without proper insurance, you could be on the hook for hefty repair costs — or even legal fees.
As a commercial operator, you might need it to actually land gigs. While the FAA doesn’t require insurance, many clients do. And if you’re flying drones outside the U.S. some other regulatory bodies require proof of insurance to fly in that country.
3 considerations when deciding to buy drone insurance for your business
Make these three considerations when deciding whether it’s worth buying drone insurance:
- Your business needs: Different industries have different coverage requirements. A real estate photographer may need a modest liability plan, while a construction drone operator may require a higher policy limit due to the potential for costly damage.
- Client expectations: Many clients require a Certificate of Insurance (COI) before signing a contract. They may specify certain liability limits or demand to be added as an additional insured on your policy.
- Regulatory compliance: In some countries, governing bodies may impose insurance requirements, especially for flights over public spaces or near critical infrastructure.
Types of commercial drone insurance
There are a variety of drone insurance policies you can buy, which fall into a few different buckets — largely liability versus hull insurance (and yes, you might very well want both).
Drone liability insurance
Liability insurance covers property damage and bodily injury caused by your drone. If your drone crashes into a building or injures a bystander, drone liability insurance can protect you from financial fallout. Coverage limits range from $0.5M to $10M or more, depending on industry standards and client needs.
Drone hull insurance
Unlike liability insurance, which covers damage to others, hull insurance protects your own equipment. If your drone crashes due to pilot error, weather conditions or mechanical failure, hull insurance can help cover repair or replacement costs. Some policies also include coverage for theft and flyaways.
Industry-specific insurance benchmarks
Coverage can vary based on the nature of your own business and flights. That said, the folks over at SkyWatch Insurance send over some estimates for insurance benchmarks:
- General photography: $0.5 million – $1 million
- Real estate: $0.5 million – $1 million
- Agriculture: $1 million
- Construction: $1 million – $5 million
- Mining: $2 million – $5 million
- Cinematography: $2 million – $10 million
How to choose the right drone insurance plan
If you fly drones regularly, ongoing coverage is often the best option. Annual policies offer better long-term value for businesses handling frequent projects.
For occasional pilots, on-demand insurance provides flexible, flight-by-flight coverage. This option is best for not just occasional pilots flying one-time gigs, but it’s also generally better for pilots flying at something like a special event where higher liability limits are required.
How much does drone insurance cost?
Exact costs vary by provider. But using an example from Skywatch Insurance, which is one of the biggest insurance companies, monthly policies (this means you’ve opted for ongoing coverage) start at $44 for $0.5 million in liability coverage, with higher limits available.
What about that on-demand model? For a mainstream drone insurance provider like Skywatch Insurance, rates start at $10 per hour.
To get a better estimate of the exact cost of your drone insurance policy based on your situation, SkyWatch.ai offers free quotes — and they’re easy to generate. Simply go to the SkyWatch quote page. From there, input details like your liability limit, the type of plan you want, how many drones you want covered, and whether you want additional coverage — and a calculator will spit out your total price.
Here’s a preview of the Skywatch insurance estimate calculator:
Try out the SkyWatch quote page for yourself here.
Go for a drone insurance policy that evolves with your business
So what sorts of qualities should you look for when picking out the drone insurance company to go with? Especially if you operate drones for your business, the best drone insurance for Part 107 commercial pilots should allow you to:
- Modify policies as needed.
- Adjust liability limits based on client requirements.
- Update your hull inventory.
- Generate Certificates of Insurance (COI) quickly for new clients.
Many clients may require specific endorsements, such as Waiver of Subrogation or Primary & Non-Contributory Coverage. Understanding these requirements upfront can help you secure projects faster.
It’s also critical that you know who actually backs the company. For example, the aforementioned SkyWatch is underwritten by Global Aerospace, which also handles the claims process. Global Aerospace has been around for more than 100 years (initially in the crewed aircraft space, of course).
The bottom line: do you really need commercial drone insurance?
If you fly commercially, the answer is almost always a firm yes. Many clients won’t hire uninsured pilots, and legal fees from a drone accident can be financially devastating. Even for recreational pilots, insurance offers peace of mind in case of unexpected incidents.
With flexible plans ranging from on-demand to full-time coverage, drone insurance is no longer just an option — it’s a smart investment in your safety, business and future as a drone pilot.
FTC disclaimer: I receive a commission when you use one of my affiliate links to receive a quote from SkyWatch.ai. Thank you in advance for supporting The Drone Girl!
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