Best Drone Insurance: Compare Top Companies and Coverages

Flying a drone is exciting, whether you’re taking pictures for fun or using it for your business. Accidents can happen, though, and the costs add up quickly.

Repairs and replacements for damaged equipment aren’t cheap. You could also face expensive liability claims if the drone injures someone or damages property. Luckily, drone insurance lets you manage these risks by protecting your equipment and finances.

In this guide, we’ve evaluated some of the best drone insurance companies to help you find the coverage that fits your needs.

Best drone insurance companies

Many companies offer drone insurance, but coverages can differ significantly among policies.

Some insurers only include liability protection, such as injury and property damage coverage. Others may provide hull, payload, and equipment protection (often as optional add-ons). Because of these differences, you should compare policies carefully before purchasing. 

To help you find the best drone insurance, we evaluated multiple companies based on coverage options, affordability, and user ratings. Here are our top picks.

BWI Aviation: Best for commercial drone pilots

BWI Aviation lets you customize your insurance coverage, making it a strong choice for commercial drone pilots. Policies can include liability, hull, and payload protection. You can also add coverage for ground equipment, loss of use, and theft protection.

With coverage limits of up to $25 million, BWI could be ideal for a drone business insurance policy handling high-risk operations. Annual plans for hobbyist pilots could start around $575. Commercial drone operators flying a fleet of drones could pay $3,200 or more for higher coverage.

SkyWatch: Best for on-demand drone insurance

If you only need drone insurance occasionally, SkyWatch offers flexible, pay-per-flight coverage. You can purchase hourly policies for as little as $5 through its mobile app. These plans include liability insurance for personal injury and property damage coverage, and protection against privacy claims.

For drone operators who want hull coverage or longer terms, Skywatch also offers monthly or annual insurance policies. Its flexibility makes it an excellent drone insurance company for on-demand coverage.

AutoPylot: Best for annual drone insurance policies

For pilots who need coverage year-round, AutoPylot offers annual drone insurance policies starting at just $450. That price point is highly competitive for the drone insurance industry, making it an attractive option for an affordable yearly plan. 

Policies include liability coverage for property damage and bodily injury. You can add hull insurance to cover repairs or replacement costs if your drone crashes. Enrollment is simple through AutoPylot’s mobile app, which has excellent reviews on Google Play and the App Store.

Avion Insurance: Best for hobbyist drone insurance

Avion Insurance partners with multiple A-rated aviation underwriters, giving drone operators access to a wide range of quotes and policy options. This could make it easier for hobbyists to find affordable plans while still receiving solid coverage.

Policies can include liability, hull, and payload coverage, with costs varying by coverage level and drone risks. An annual plan with unmanned aerial vehicle (UAV) liability insurance and hull protection may cost around $500 per year, according to Avion’s website.

What does drone insurance cover?

All drone insurance policies provide basic liability coverage — up to the limits you choose — to protect you from claims if your drone hurts someone or damages property. The best drone insurance options typically also offer:

• Hull coverage: Serves as accident insurance for repairs or replacements to your drone

• Payload insurance: Covers drone attachments like cameras or sensors

• Equipment insurance: Protects your ground gear, such as controllers, extra batteries, and laptops

Let’s take a closer look at each of these insurance types.

Personal or business liability

If your drone hurts someone or damages property, you could be financially responsible. Liability coverage can reimburse medical bills, legal fees, or settlements.

Both hobbyists and professionals typically need this protection, since even minor accidents could lead to expensive claims. Many clients and organizations will also require proof of insurance before hiring you.

Hull insurance

Hull coverage — sometimes called drone damage insurance — can pay for repairs or replacement costs if your drone crashes, collides, or suffers weather-related damage. This insurance is especially important if you’re flying expensive aircraft or fleets, for which drone repairs could be costly.

For commercial pilots, hull insurance could reduce downtime after an accident.

Payload insurance

Payloads, such as cameras, lidar systems, or sensors, are often worth more than the drone itself. With payload insurance, you can protect your attachments if they’re lost, stolen, or damaged. This coverage may be an essential add-on for commercial drone business insurance policies, where payloads help the operators with aerial photography, surveying, or mapping.

Equipment coverage

Some drone insurance companies let you add equipment coverage for your gear that stays on the ground, such as laptops, gimbals, controllers, or extra batteries. For commercial pilots with expensive equipment, this add-on can cover repairs or replacement costs if items are lost or damaged. Many policies also include theft protection, covering stolen gear as well.

What drone insurance won’t cover

Drone insurance can cover liability claims and accidents, but it has limits. Exclusions may include:

• Incidents from unregistered drones: You must register drones with the Federal Aviation Administration (FAA) unless they’re less than .55 lbs. and used for limited recreational purposes.^[3] Failing to comply with regulations or insurance requirements can void coverage.

• Employee injuries: These claims typically fall under workers’ compensation insurance, not drone liability protection.

• Reckless or illegal activity: Using your drone for crime or careless actions — such as intentionally invading someone’s privacy or participating in terrorist or political acts — may result in denied claims.

• Normal wear and tear or mechanical failure: Drone insurance typically won’t cover cosmetic damage or breakdowns from mechanical failures.

How much does drone insurance cost?

Drone insurance rates depend on factors like coverage type, insurance policy length, and overall drone risks. 

On-demand policies are the most flexible, with hourly premiums starting around $9 but sometimes reaching $25 or more. Monthly plans can range from $40 to $140, which may make sense if you fly several times a month.

For drone operators who need year-round protection, annual insurance plans for recreational use could start at $450. On the other hand, a high-risk commercial drone operation could cost $4,000 per year or more.

Factors that affect the cost of drone insurance

Just like other types of insurance, the cost of drone insurance premiums varies depending on risk factors, including:

• Drone price: High-value drones cost more to repair or replace, which increases premiums.

• Flight purpose: Commercial use often requires a higher coverage level than recreational flying.

• Coverage amount: Higher coverage limits mean you’ll have more financial protection but also higher premium costs.

• Insurance policy length: Longer policies may cost more up front but can provide better overall value.

• Pilot experience: New drone operators may create higher safety concerns than experienced pilots.

• Location: Areas with higher drone risks, like cities or rugged terrain, typically increase insurance rates.

How to buy the best drone insurance for your needs

Here are the typical steps to take when shopping for the best drone insurance policy:

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  1. Assess your needs

  Decide if you need coverage for liability, hull damage, payloads, or equipment.

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  2. Compare insurance policies

  Get quotes from multiple drone insurance companies to evaluate cost and coverage level.

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  3. Check exclusions

  Review the drone insurance terms to see what’s excluded, such as mechanical failure or reckless flying.

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  4. Verify insurance requirements

  Check FAA rules and any state or local laws. Ensure your registration and licensing details will align with your policy.

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  5. Choose coverage

  Select the policy with the best insurance quote that provides the coverage you need.

Best drone insurance FAQs