Drone Insurance: Cost, Coverages, and Whether You Need It

As drones become more prevalent for hobbyists and in business operations, it becomes increasingly important to protect these unique assets. That’s where drone insurance comes into play. This type of coverage can help protect drone pilots and drones themselves, offering assurance that if an accident occurs, you’ll be covered.

Learn how drone policies work, what they cost, and when you’re required to have drone insurance — as a hobbyist or business professional.

What is drone insurance?

Drone insurance is a type of policy that protects you from liability claims or equipment damage. These coverages protect you if your drone accidentally damages another person’s property, such as their car or home, or if your drone itself incurs damage. While liability and hull insurance are the primary types of drone coverage, optional coverages offer added protection.

It’s worth noting that the Federal Aviation Administration (FAA) doesn’t require you to buy insurance, but it does require you to register your drone with the U.S. government if it’s over 0.55 pounds.^[1] Commercial operators must also get a Part 107 certification through the FAA.^[2] Failure to do so could mean fines and penalties. While drone insurance isn’t required by law, it’s often smart to get coverage.

Some common reasons you may want to buy drone insurance include:

• Meeting client requirements for safety and financial protection

• Operating expensive equipment you want to protect

• Financial protection for accidental injuries or property damage

Types of drone insurance

Liability and hull insurance are the two primary types of drone coverage. Liability insurance protects you financially if your drone accidentally damages another person’s property or injures someone during operation. Hull insurance can pay for damage to your drone itself in case of an accidental crash or another covered incident.

In addition to the two primary coverage types, two policy types are also available: commercial and recreational drone insurance. Commercial drone insurance is often more expensive and provides more comprehensive coverage for business purposes. Recreational drone insurance is often cheaper and covers recreational pilots operating with expensive equipment in populated areas.

What drone insurance covers

Drone insurance typically covers damage your drone causes or damage to your drone itself. Some of the most common protections include:

• 

  Liability coverage

  Liability coverage pays for damage to other people’s property, injury to others, invasion of privacy claims, and other legal costs incurred as a result of operating a drone.

• 

  Hull coverage

  Hull coverage pays for damage to or replacement of your drone.

• 

  Payload coverage

  Payload coverage pays for damage to attached equipment, such as cameras, that you’re using for commercial purposes.

• 

  Theft, loss, or vandalism coverage

  This coverage pays for theft, loss, or vandalism of your drone.

Commercial drone operators need a special certification from the government, called a Part 107 certificate, to qualify for a drone insurance policy.^[3] Recreational operators don’t necessarily need this certificate.

What drone insurance won’t cover

Drone insurance typically has some exclusions, including:

• Flying without FAA registration (when required)

• Operating in prohibited areas or at prohibited altitudes

• Damage from illegal activities

• Wear and tear

• Mechanical failure

• Unapproved commercial use under a recreational policy

Cost of drone insurance

The cost of drone insurance ranges based on your needs, but policies may start at a few hundred dollars annually.

While commercial or professional users may need to pay for annual coverage, recreational users might have more options, including on-demand (hourly or per-flight) coverage.

Factors affecting your insurance costs include:

• Type of drone

• Value of the drone equipment

• How you use the drone (recreational vs. commercial)

• Pilot’s experience

• Coverage limits and deductible

Your coverage costs will be relative to how you use the drone, as shown in the chart below.

Type of User	Cost of Drone Insurance
Recreational	Lowest
Hobbyist	Low
Commercial	Highest

Do you need drone insurance?

If you use a drone for business, your clients or area regulations may require you to buy drone insurance. Hobbyists don’t necessarily need coverage, but it could be a good idea if your drone is expensive or you fly close to neighborhoods. A drone accident can be expensive — especially if your drone is seriously damaged or damages another person’s property.

Home or renters insurance may provide limited coverage for your drone if you’re a hobbyist. For instance, your drone could be covered under your personal property if it’s damaged, but it depends on your policy. Your liability insurance may also offer some protection.

Drone insurance for commercial use

Realtors, insurance companies, surveyors, and photographers commonly use drones in their business operations. Many employers and clients in these fields require drone liability insurance. You’ll also need a Part 107 certificate to operate a commercial drone. 

Potential risks commercial drone pilots face include:

• Privacy risks from flying over private property

• Privacy risks from recording video or taking images of people

• Equipment failure during a paid shoot

• Accidental property damage during a paid shoot

Due to these risks, it’s smart to shop for policies that include liability and hull coverage for your drone. You may also want payload coverage if you frequently use an expensive camera for your projects.

Drone insurance for recreational use

While drone insurance isn’t required by law for recreational pilots, it can be a wise investment. Certain companies, such as AMA and SkyWatch, offer basic liability insurance via on-demand apps or memberships. On-demand coverage is typically priced by the hour. Those options are good places to start if you’re shopping for coverage.

Drone liability insurance can also protect you from risks like unintentional damage to property or injuries to people while flying your drone in parks, neighborhoods, or crowded areas. 

Before you look for a policy, you’ll want to:

• Check your home or renters policy to see what it covers

• Confirm FAA compliance

• Understand geographic restrictions

Depending on your circumstances, you might consider umbrella insurance in addition to your home or renters coverage. This insurance provides broader protection, and it may be cheaper than a stand-alone drone insurance policy.

Drone insurance FAQs