Drone Insurance Guide

The first thing to discuss about drone insurance is if you actually need it or not. For the time being, the FAA does not require anyone to obtain drone insurance. If you plan to use your drone merely for leisure photo and video, there isn’t really a reason to get drone insurance. However, if you plan to use your drone commercially, it is highly recommended by most that you get insured before you begin flying.

Drone insurance can help you get clients. Often times, they will ask if you have drone insurance during the hiring process. Even if they don’t ask, it makes you look more professional and it assures you that if something happens to your business’s main asset, you haven’t lost all that money.

For those who plan to fly their drone for leisure, many homeowners insurance policies now cover drones. That is if you are flying at home. You should contact your insurance agent to find out what your policy covers.

There are many technicalities to drone insurance. Some companies insure drones in addition to their other policies, some insure only drones, and others will only insure your drone if you are flying commercially.

Again, drone insurance is not mandatory in the US, but some companies will only hire drone pilots who have a certain amount of insurance. Commercial drone pilots should get insured.

Outline

What is Drone insurance?
What does drone insurance cover?
How much is drone insurance
process to get insurance
companies that offer drone insurance

What is drone insurance

Drone insurance cover you if you lose your drone or have an accident. Insurance companies will provide damage and liability costs to a certain extent. You will probably not be told this up front, but insurance agents who provide coverage for drones have said that they like to insure pilots who have been trained to fly their drones.

They like it even better when pilots have operating manuals, maintenance logs, and a record of parts and accessories purchased. When a “dronetographer” has these and proof of training, insurance agents consider them to be safer pilots.

Why do insurance agents care about this? If you are a safe, responsible pilot, you lower the risk of damage done to your drone, other people, animals, other objects, and most importantly to the agents, to the company’s loss. The safer of a pilot that you are, the easier it is for you to get insurance at lower premiums.

What does drone insurance cover

  • Possible reasons to be insured

    • Law Enforcement and SWAT
    • Emergency Response (FEMA)
    • Fire and Rescue
    • Traffic Patrol and Accident Assistance
    • Homeland Security
    • Corrections Facility Security
    • Agriculture and Conservation
    • Construction
    • Facilities Protection: Electrical, Nuclear, and Water Sites
    • Maritime and Shipping
    • Pipeline/Hydro-Transmission Line Inspection
    • Railroad and Highway Maintenance
    • Archaeology and Geology Exploration
    • National Parks and Recreation
    • Movies and Videography
    • News Gathering
    • Real Estate
  • Some Accidents that Certain Drone Insurance Policies Cover

    • Loss or damage to the UAV and associated equipment
    • Coverage for aircraft operators, including other non-pilot, on-ground crew
    • Manufacturer Product Liability
    • Third Party Legal Liability
    • Premises Liability
    • Aviation and Premises Medical Payments
    • Fire Legal Liability
    • Independent Contractors Liability
    • Personal Injury
    • Advertising Liability
    • Contractual Liability
    • Fellow Employee Coverage
    • War, Hi-Jacking and Terrorism
    • Damage to Premises You Rent
    • Your Property & Office/Studio Contents
 

how much is drone insurance

The cost of drone insurance will vary greatly (as all insurance does) upon the company which you are seeking to be insured by and your own experience if that is one of the things the agent takes into consideration. Most drone insurance policies are divided into two categories though. Liability and Hull damage. Liability covers you if your drone causes damage or injury to a third party and Hull damage will take care of your drone.

Not every drone insurance policy includes both liability and hull coverage. Some agents require that you have an FAA 333 exemption.

Drone insurance can be as little as $800 per year.

If you are planning to get drone insurance, you may want to start considering the things that the agent may look at:

  • Do you have 50-100 hours logged flight time
  • Do you have a maintenance log
  • Do you have an FAA 333 Exemption
  • Do you own or lease your drones
  • Can you automatically record you flight log
  • Do you fly over water, indoors, or near people
  • Have you taken drone training
  • Your website
 

Process to get drone insurance

To get drone insurance, you will most likely want to begin by getting quotes from several companies. Most insurance companies will give you a quote on their website.

Here are some things they might ask:

  • Personal and Contact Info
  • If you want liability and/or hull coverage
  • The cost of your drone
  • Info about your model
  • Where you plan to operate
  • Hours that you have flown
  • How much training you have
  • If you have had any previous accidents
  • If you have a FAA 333 Exemption

Here is a form from Aviation Insurance with typical questions.

Once you have decided what insurance company to go with, they will help you through the rest of the process.