Table of contents
Table of contents
When you start up your drone, the sky really is the limit. But if something goes wrong, are you covered by a drone insurance policy?
Without drone insurance, you’re liable for the full cost of damages to health and property if your drone gets into trouble while it’s in the air. Drone insurance can also help you replace or repair your equipment.
No federal law requires drone pilots to have insurance, though regional regulations exist in some areas. For hobbyists, drone insurance is a good idea. For business owners, it’s essential.
In this article, you’ll learn what drone insurance costs, the factors that affect what you pay, and how to save.
Quick Facts
The cost of drone insurance depends on pilot experience, risk level, and other factors.
Many drone insurance companies offer add-on protections for the drone itself, payload, equipment, and more.
You can purchase coverage for an hour, a month, or a year of flying.
How much does drone insurance cost?
A standard liability policy for a noncommercial drone costs approximately $450 per year. Coverage for commercial use will likely raise your premiums into the range of $600 to $3,000 per year and perhaps more.
Pricing depends on the amount of coverage you’re looking for, the value of your drone, the type of work you do with it, and the types of damages you want covered, among other factors.
Your insurance quote will be lower if you agree to pay the annual premium up front instead of monthly. You can also take other steps to lower your drone insurance costs.
Factors that affect the cost of drone insurance
Companies determine your insurance costs based on risk factors. The following factors, among others, may affect your drone insurance premium:
Coverage type (hull, liability, payload, ground equipment): How much coverage do you want?
Drone value: What would it cost to replace your drone?
Payload: Are you carrying valuable equipment or cargo?
Flight environment: In a busy area, rates might be higher.
Pilot experience (pilot certifications): Experience and certifications usually earn pilots discounts.
Risk level: What are the chances that something will go wrong?
Drone use (commercial or casual): Businesses have higher risk factors and are more expensive to insure.
Claim history: Past claims generally increase your rate.
Policy term: Choose a policy length that works, from just an hour (sometimes less than $10) to an entire year (at least $450).
Policy coverage limit: Higher coverage amounts will command a higher premium.
What drone insurance covers
At a minimum, drone insurance provides liability coverage. This means that the policy pays the cost of the harm that your drone does to someone else’s property or person, capped at specific coverage amounts.
Here are the most common features of drone insurance coverage. Remember, only liability coverage is included in every policy:
Bodily injury liability
Bodily injury liability covers the cost of medical bills and other damages to another person that are your fault.
Property damage liability
This coverage pays for the cost to repair damages that your drone accidentally causes.
Drone damage or loss
Not every policy covers this. Be sure to look for replacement value if you choose this drone insurance option.
Damage or loss of payload
This additional coverage costs extra.
Damage or loss of equipment
This coverage protects equipment related to your drone operation. It’s sometimes available as an add-on.
What drone insurance doesn’t cover
You’ll want to get to know the exclusions and coverage limits in your specific policy coverage. Here are some that apply to most drone insurance policies:
Intentional damage: Unless it’s from an accident, the damage won’t be covered.
Flying illegally: If you’re breaking the law when the damage occurs, insurance doesn’t apply.
Wear and tear: Normal depreciation isn’t considered a “covered loss” for any insurance policy.
Mechanical breakdown: Check your policy, but don’t expect mechanical failures to be covered.
Privacy-related claims: Unless it’s explicitly stated in your policy coverage, you’ll need separate insurance for claims of privacy violations and similar charges.[3]
Keep in Mind
When you shop for a policy, consider the risk factors that you most want to mitigate and be sure your drone insurance policy will cover them. You should also make sure that your coverage limits are adequate for your potential liability.
Do you need drone insurance?
Not everyone will need drone insurance. For example, if you only fly a toy drone in your backyard, you might not need coverage. Your renters or homeowners insurance may cover any trouble your drone gets into near home.
But many drone pilots opt to buy drone insurance even though federal law doesn’t require them to have it. The drone insurance market is strong and growing.[4]
For hobbyists, accidents are never the goal, but they happen. A liability drone insurance policy can protect you financially if your drone accidentally hurts someone or causes property damage.
Flying for a specific purpose, business owners have an even higher risk level in terms of liability. And depending on the drone categories and equipment they operate, considerable sums of capital investment might be traveling through the air. For most people, drone policy coverage makes business sense.
How to save on drone insurance costs
If your initial insurance quote looks higher than expected, you may be able to find discount opportunities to help lower your premium. Try any of these suggestions if they apply:
Gain pilot experience and training. Graduates of training and safety courses may qualify for discounts. Plus, more pilot experience will help you score friendlier rates over time.
Choose a higher deductible. Insurance companies will generally offer higher deductibles in exchange for lower policy premiums.
Bundle insurance policies. Combining multiple policies with the same company will almost always earn you a discount.
Avoid filing claims. Less damage on your record will lower your perceived risk level.
Comparison shop. In the growing and competitive drone business, pricing will vary by company. Look at multiple offers before making your choice.
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