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Compare commercial drone insurance
Protect your business and its airborne assets.
If you plan on using a drone for commercial purposes, you’ll want to make sure it’s covered. Drone insurance protects you not only from the costs of damage, but also if your drone causes damage to someone else’s property.
What's in this guide?
- How does commercial drone insurance work?
- What kind of commercial drone coverage do I need?
- How much is commercial drone insurance?
- How to buy commercial drone insurance
- How to apply for commercial drone insurance
- Which industries can benefit from drone coverage?
- Bottom line
- Frequently asked questions
How does commercial drone insurance work?
Drone insurance coverage protects businesses in two keys ways: physical damage and third-party liability.
Physical damage coverage for drones
Damage coverage for your drone can protect you from a host of expenses if it’s damaged in an accident. Depending on your policy, expect coverage for:
- Installed equipment
- Control units
- Onboard cameras
- Hull damage
Third party drone liability
Your liability coverage protects your business and nonpilot and on-ground crew members. Third party liability is an important section of UAV insurance and protects you in the following scenarios:
- Your drone crashes into a manned aircraft, causing injuries.
- Your drone crashes into a building or vehicle and causes damage.
- Your drone crashes into a group of people.
Additional drone coverage
Most UAS insurance policies are customizable, so you could find coverage for hijacking, terrorism and war, which would normally be excluded.
What kind of commercial drone coverage do I need?
The type of drone insurance you need depends on your business and how often you plan on using the drone for commercial purposes. Most policies are customizable, much like car insurance.
Annual policies vs. on-demand coverage
The biggest question is whether you need an annual policy for full-time use or an on-demand policy with an hourly rate. To figure out which option is right for you, get a quote for both. Divide the annual quote by the on-demand one to see how many times you’d have to use your drone to make the annual policy worth it.
- Pay your premiums on a six- or 12-month schedule.
- Policy covers you for the calendar year.
- Ideal for companies using the drone on regularly.
- Cheaper, usage-based plans with coverage from $10 an hour.
- Policy covers you only when you need it.
- Ideal for companies that don’t use drones regularly.
Compare commercial drone insurance
How much is commercial drone insurance?
According to Drones Buy, the level of liability coverage you want determines how much you’ll pay. Expect to pay between $750 and $2,000 for an annual policy.
|Liability coverage maximum limit||Price per year per drone|
What affects the cost of drone insurance?
How much your drone insurance costs depends on several variables, including:
- How you plan on using your drone.
- The type of drone.
- Where you plan on flying the drone.
- Level of coverage.
How to buy commercial drone insurance
Once you’ve compared drone insurance and know the type of coverage you need, buying your policy online is quick and easy to set up.
- Complete the insurers quote form. Tell the insurer about the type of drone you have and how you plan on using it.
- Compare your quotes. Get a few quotes to make sure you’re getting the best value. You should not only compare coverage based on price, but also on the coverage features.
- Buy your policy. Once you’re happy with both the price and coverage, complete your application to sign up for the policy.
How to apply for commercial drone insurance
To get commercial coverage for your drone, you’ll typically have to meet a few requirements.
- Be at least 16 years old
- Register your drone with the FAA
- Pass the Part 107 aeronautical knowledge test at an FAA-approved testing center
- Get a Remote Pilot Certificate from the FAA if you want to fly commercially
- Complete a Transportation Safety Administration (TSA) security screening
Info you’ll need to apply for drone insurance
When you apply for coverage, you’ll likely be asked for the following information:
- Name and address
- Business information
- Aircraft information
- Intended use and operating environment
- Pilot information
Which industries can benefit from drone coverage?
UAVs are helping a range of companies improve the way they do business. Industries that have seen an uptick in the use of drones include:
- Emergency services. Police use drones as an effective and relatively cheap aerial surveillance option.
- Forestry. Unmanned drones can track survival counts and species regeneration.
- Insurance. Claims assessors can use drones to quickly evaluate natural disaster areas.
- Media. Drones offer journalists access to new photos and stories.
- Mining. Exploration missions and aerial surveys are made easier with drones.
- Real estate. Agents can use drones to provide potential buyers with visual tours of the house and surrounding neighborhood.
- Telecommunications. Utility companies can find downed phone lines and inspect other infrastructure more quickly.
What’s not included with drone insurance
When you’re buying any financial product, the devil is in the details — and drone insurance is no different. Common exclusions include:
- Acts of war.
- Civil unrest.
- Intentional damage.
- Government confiscation.
If you’re planning to use a drone in the day-to-day operations of your business, you’ll need commercial drone insurance. Protect yourself against the liability and damage costs by comparing the best options for drone insurance.
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