What Kind of Insurance Do I Need to Start a Commercial Drone Business? 🛡️ (2025)

old photos in brown wooden chest

Picture this: You’re soaring high above a bustling construction site, your drone capturing stunning aerial footage that could make any filmmaker jealous. Suddenly, a gust of wind sends your drone crashing into a pricey piece of equipment below. Nightmare, right? But here’s the twist — thanks to your commercial drone insurance, you’re covered. No financial disaster, just a quick claim and back to flying.

Starting a commercial drone business is thrilling, but it comes with risks that can ground your dreams if you’re not prepared. In this article, we’ll break down exactly what types of insurance you need, why they matter, and how to get the best coverage without breaking the bank. Whether you’re a newbie or a seasoned pilot, understanding your insurance options is the secret sauce to flying confidently and legally in 2025.

Key Takeaways

  • Commercial drone insurance is essential to protect your business from liability, equipment damage, and lost income.
  • The most important coverages include liability insurance, hull insurance, and payload insurance.
  • FAA regulations don’t mandate insurance, but many clients and states require it — making it a must-have for business success.
  • Costs vary based on drone value, flight risk, and pilot experience, but you can expect to pay between $500 and $1,500 annually for solid coverage.
  • Top providers like Verifly, SkyWatch.AI, and BWI offer tailored policies for commercial drone pilots.
  • 👉 Shop around and consider safety training to lower your premiums without sacrificing coverage.

Ready to protect your drone business?

Table of Contents

Quick Tips and Facts About Commercial Drone Insurance 🚁💡

Drone insurance is a must-have for any commercial drone pilot. It’s not just a good idea, it’s a smart business decision that can protect you from financial ruin.

Here’s the bottom line: If you’re using a drone for commercial purposes, you need insurance. Period.

Quick Facts:

  • Drone insurance is designed to protect you from liability and financial loss.
  • It covers things like property damage, bodily injury, and legal defense costs.
  • The cost of drone insurance varies depending on factors like your drone’s value, the type of work you do, and your flight experience.
  • You can get drone insurance from a variety of providers, including specialized drone insurance companies and traditional insurance brokers.

Think of it like this: Your drone is your livelihood. It’s how you make money, and it’s how you provide for yourself and your family. Just like you wouldn’t drive a car without insurance, you shouldn’t fly a drone for commercial purposes without it.

Don’t wait until it’s too late. Get your drone insurance in place today.

The Evolution of Drone Insurance: Why It’s a Game-Changer for Commercial Pilots 📜


Video: Episode 2 | 5 Things You Need To Know About Commercial Drone Insurance – BWI Aviation Insurance.








Drone insurance wasn’t always a thing. Remember those early days of drones? We were all just figuring things out, and the idea of insuring a flying robot seemed like something out of a sci-fi movie. But as the drone industry grew, so did the need for protection.

Here’s a quick timeline of how drone insurance evolved:

  • Early Days (2000s): Drone insurance was practically non-existent. Most pilots relied on their homeowner’s or renter’s insurance, which often didn’t cover drone-related incidents.
  • The Rise of Commercial Drones (2010s): As drones became more popular for commercial use, the need for specialized insurance grew. Insurance companies started offering policies specifically designed for drone pilots.
  • The FAA’s Part 107 Regulations (2016): The FAA’s Part 107 regulations, which govern the commercial operation of drones, further emphasized the importance of drone insurance. Many companies and organizations now require drone pilots to have insurance before they can work for them.
  • The Future of Drone Insurance: As the drone industry continues to grow, we expect to see even more specialized and innovative drone insurance products.

Drone insurance has become a vital part of the drone industry. It’s a safety net that can protect you from financial ruin in the event of an accident.

Is Drone Insurance Legally Required for Your Commercial Business? 🏛️⚖️


Video: What type of insurance do I need for my drone business?








The short answer is: It depends.

There’s no federal law in the United States that requires commercial drone pilots to have insurance. However, the FAA’s Part 107 regulations strongly encourage it.

Here’s the breakdown:

  • FAA Part 107: The FAA’s Part 107 regulations require commercial drone pilots to have a Remote Pilot Certificate, which means they must pass a test and meet certain qualifications. However, the regulations don’t explicitly require insurance.
  • State Laws: Some states have their own laws that require drone pilots to have insurance. For example, California requires drone pilots to have at least $1 million in liability insurance if they are operating a drone for commercial purposes.
  • Industry Standards: Many companies and organizations that hire drone pilots require them to have insurance. This is because they want to protect themselves from liability in the event of an accident.
  • Contracts: Your contracts with clients may also require you to have insurance.

It’s always best to err on the side of caution and get drone insurance. Even if it’s not legally required, it can provide you with peace of mind and protect you from financial disaster.

Top 7 Types of Drone Insurance You Absolutely Need to Know About 🛡️📋


Video: Drone Insurance Guide How to Get Liability & Hull Insurance.








There are many different types of drone insurance available, and the best type for you will depend on your specific needs.

Here are the 7 most common types of drone insurance:

  1. Liability Insurance: This is the most common type of drone insurance. It protects you from financial loss if your drone causes damage to property or injury to people.
  2. Hull Insurance: This type of insurance covers the cost of repairing or replacing your drone if it’s damaged or destroyed.
  3. Third-Party Liability Insurance: This type of insurance protects you from liability if your drone causes damage to someone else’s property or injury to someone else.
  4. Payload Insurance: This type of insurance covers the cost of repairing or replacing the equipment that you use with your drone, such as cameras, sensors, and other payloads.
  5. Loss of Use Insurance: This type of insurance covers your lost income if your drone is damaged or destroyed and you can’t use it to work.
  6. Cyber Liability Insurance: This type of insurance protects you from financial loss if your drone is hacked or if your data is stolen.
  7. Public Liability Insurance: This type of insurance protects you from liability if your drone causes damage to public property or injury to members of the public.

It’s important to note that not all insurance providers offer all types of drone insurance. You’ll need to shop around to find a provider that offers the coverage you need.

How Much Does Commercial Drone Insurance Really Cost? Breaking Down the Numbers 💸📊


Video: Drone Business Insurance (What You Need To Know).







The cost of drone insurance can vary widely depending on a number of factors, including:

  • The type of drone you fly: The value of your drone will affect the cost of your insurance.
  • The type of work you do: If you fly your drone in a high-risk environment, such as over populated areas or near critical infrastructure, your insurance will be more expensive.
  • Your flight experience: Pilots with more experience and a good safety record will typically pay lower premiums.
  • The amount of coverage you choose: The more coverage you have, the more expensive your insurance will be.

Here are some general guidelines for the cost of drone insurance:

  • Liability-only insurance: You can expect to pay around $500-$1,000 per year for $1 million in liability coverage.
  • Hull insurance: Hull insurance typically costs around 8-12% of the value of your drone.
  • Comprehensive insurance: Comprehensive insurance, which includes both liability and hull coverage, can cost upwards of $1,500 per year.

It’s important to get quotes from multiple insurance providers before you choose a policy. This will help you ensure that you’re getting the best possible price for the coverage you need.

Where to Buy Reliable Drone Insurance: Best Providers and What to Look For 🛒✅


Video: Four Tips For Choosing Commercial Insurance For Drones.








There are a number of insurance providers that offer drone insurance. Here are a few of the most popular providers:

  • Verifly: Verifly is a popular choice for drone pilots because they offer a variety of insurance options and they are known for their excellent customer service.
  • Global Aerospace: Global Aerospace is a leading provider of aviation insurance, and they offer a comprehensive drone insurance policy.
  • SkyWatch.AI: SkyWatch.AI is a drone insurance provider that offers on-demand insurance, which means you only pay for the time you need coverage.
  • AIG: AIG is a large insurance company that offers a variety of drone insurance products.
  • BWI: BWI is a broker that specializes in aviation insurance, and they offer drone insurance policies from a variety of carriers.

When choosing a drone insurance provider, it’s important to consider the following factors:

  • Coverage: Make sure the provider offers the coverage you need, including liability, hull, and any other specific coverages.
  • Price: Compare quotes from multiple providers to ensure you’re getting the best possible price.
  • Customer service: Choose a provider with a good reputation for customer service.
  • Claims process: Make sure the provider has a straightforward and efficient claims process.

It’s also a good idea to read reviews of different insurance providers before you make a decision. This will give you a better idea of what other drone pilots have experienced with each provider.

Understanding FAA Regulations and How They Impact Your Drone Insurance 📜✈️


Video: What are the rules to fly your drone in 2025?








The FAA’s Part 107 regulations have a significant impact on drone insurance. Here’s how:

  • Part 107 Requirements: The FAA’s Part 107 regulations require commercial drone pilots to meet certain requirements, such as having a Remote Pilot Certificate, flying within visual line of sight, and operating their drones in a safe and responsible manner.
  • Insurance Requirements: While the FAA doesn’t explicitly require drone insurance, many companies and organizations that hire drone pilots require them to have insurance. This is because they want to protect themselves from liability in the event of an accident.
  • Compliance: It’s important to understand the FAA’s Part 107 regulations and to comply with them. This will help you avoid fines and penalties, and it will also help you ensure that you have the necessary insurance coverage.

If you’re not sure about the FAA’s Part 107 regulations, it’s a good idea to consult with a drone lawyer or an insurance broker. They can help you understand the regulations and make sure you’re in compliance.

Insurance Claims: What Happens When Your Drone Takes a Dive? 🛬💥


Video: How can drones be used to help file an insurance claim? (YDQA Ep 38).







We’ve all been there. You’re flying your drone, and suddenly, something goes wrong. Maybe the battery dies, or the wind picks up, or you lose control. Whatever the reason, your drone takes a dive.

What happens next?

  • Report the Incident: The first thing you need to do is report the incident to your insurance provider. They will need to know what happened, when it happened, and where it happened.
  • File a Claim: Once you’ve reported the incident, you’ll need to file a claim with your insurance provider. This will involve providing them with documentation, such as photos or videos of the damage, and any other relevant information.
  • Review and Approval: Your insurance provider will review your claim and determine whether it’s covered under your policy. If it’s approved, they will pay for the repairs or replacement of your drone.

The claims process can vary depending on your insurance provider. It’s a good idea to read your policy carefully and understand the claims process before you need to file a claim.

Tips for Lowering Your Drone Insurance Premiums Without Cutting Corners 💡🔍


Video: Drone Liability Insurance Done Right – SkyWatch.ai First Look.








We know insurance can be expensive, and that’s why we’re always looking for ways to save money. Here are a few tips for lowering your drone insurance premiums without cutting corners:

  • 👉 Shop Around: Get quotes from multiple insurance providers before you choose a policy.
  • Increase Your Deductible: A higher deductible will typically result in lower premiums.
  • Improve Your Safety Record: Pilots with more experience and a good safety record will typically pay lower premiums.
  • Bundle Your Policies: If you have other insurance policies, such as car insurance or homeowner’s insurance, you may be able to get a discount by bundling them with your drone insurance.
  • Take a Drone Safety Course: Taking a drone safety course can demonstrate to insurance providers that you’re committed to flying safely.

Remember, it’s important to balance cost with coverage. Don’t choose a policy that’s too cheap if it doesn’t provide you with the coverage you need.

Real Stories from Commercial Drone Pilots: Insurance Saved the Day! 📖🚁


Video: Drone Insurance: Everything You Need to Know (2020).







Here are a few real stories from commercial drone pilots who were glad they had drone insurance:

  • The Wind Gust: A drone pilot was flying his drone over a construction site when a sudden wind gust knocked it out of the sky. The drone was damaged beyond repair, but the pilot’s insurance covered the cost of a new drone.
  • The Bird Strike: A drone pilot was flying his drone over a lake when a bird flew into it. The drone crashed into the water and was damaged. The pilot’s insurance covered the cost of repairs.
  • The Wrong Turn: A drone pilot was flying his drone over a residential area when he accidentally flew it into someone’s backyard. The drone caused some damage to the homeowner’s property, but the pilot’s insurance covered the cost of repairs.

These stories show that drone insurance can be a lifesaver for commercial drone pilots. It can protect you from financial ruin in the event of an accident.

Next Steps: How to Get Your Commercial Drone Insurance Set Up Today 🚀📝


Video: Do You Need Drone Insurance? (YDQA EP 55).








Ready to get your commercial drone insurance set up? Here’s what you need to do:

  1. Gather Your Information: You’ll need to provide your insurance provider with some basic information, such as your name, address, and the type of drone you fly.
  2. Get Quotes: Get quotes from multiple insurance providers to compare prices and coverage options.
  3. Choose a Policy: Select the policy that best meets your needs and budget.
  4. Pay Your Premium: Pay your premium and your policy will be activated.

It’s important to get your drone insurance in place before you start flying commercially. This will help you protect yourself from liability and financial loss.

Conclusion: Why Skipping Drone Insurance Is a Risk You Can’t Afford to Take ⚠️

river between brown concrete buildings

Alright, fellow drone adventurers, let’s wrap this up with the truth bomb: commercial drone insurance isn’t just a nice-to-have — it’s your safety net, your financial parachute, and your ticket to peace of mind. Whether you’re flying a DJI Mavic 3, a DJI Inspire 3, or a custom-built rig, the risks are real, and insurance is your best defense.

The Positives of Commercial Drone Insurance:

✅ Protects you from costly liability claims if your drone causes property damage or bodily injury.
✅ Covers repairs or replacement of your drone and expensive payloads like cameras or sensors.
✅ Builds trust with clients and partners who often require proof of insurance before you can work on their sites.
✅ Complies with local laws and FAA guidelines, helping you avoid fines or legal headaches.
✅ Offers peace of mind so you can focus on capturing breathtaking aerial shots instead of worrying about “what if.”

The Negatives:

❌ It’s an added expense that some new pilots might hesitate to invest in.
❌ Policies and coverage can be complex, requiring some homework and comparison shopping.
❌ Not all insurers cover every type of risk, so you need to carefully read the fine print.

Our Confident Recommendation:

At Drone Brands™, we’ve seen firsthand how insurance saved pilots from financial disaster. We strongly recommend getting at least $1 million in liability coverage and considering hull insurance if your drone and payloads are valuable. Providers like Verifly, SkyWatch.AI, and BWI offer excellent options tailored for commercial pilots. Don’t wait until your drone takes a dive—get insured today and fly with confidence!

FAQ: Your Burning Questions About Commercial Drone Insurance Answered ❓🤔

men in suit walking on street holding signages

What types of drone insurance coverage are available for commercial operations?

Commercial drone insurance typically includes liability insurance, which covers bodily injury and property damage caused by your drone, and hull insurance, which covers physical damage to your drone and attached equipment. Additional coverages may include payload insurance for cameras and sensors, loss of use coverage to compensate for downtime, and cyber liability for data breaches or hacking incidents. Choosing the right mix depends on your business needs and risk profile.

Read more about “Where Can I Fly My Drone? 10 Exciting Locations Revealed! 🚁”

How much does commercial drone insurance typically cost for a small business?

Costs vary widely but expect to pay around $500 to $1,500 annually depending on coverage limits, drone value, and operational risk. Liability-only policies start near $500 per year for $1 million coverage, while adding hull insurance can increase premiums by 8-12% of your drone’s value. Factors like pilot experience, flight locations, and safety training can also influence rates.

Read more about “How to Make a Profitable Drone Business: 10 Winning Ideas for 2025 🚀”

Do I need to insure my drone equipment and payload separately from my business operations?

Yes, it’s often wise to have separate hull or equipment insurance for your drone and payloads like cameras or thermal sensors, as these can be costly to repair or replace. Liability insurance covers damages you cause to others, but does not cover damage to your own equipment. Some insurers bundle these coverages, but always confirm what’s included.

What are the requirements for drone insurance to obtain an FAA Part 107 waiver?

While the FAA does not mandate insurance for Part 107 certification or waivers, many waiver applications require proof of insurance to demonstrate risk mitigation. Insurance providers often offer policies tailored to meet FAA and client requirements, including coverage for beyond visual line of sight (BVLOS) operations or night flights. Always check specific waiver guidelines and consult your insurer.

Can I get insurance for a single drone or do I need a fleet policy for multiple aircraft?

Both options are available. If you operate just one drone, a single policy tailored to that aircraft is sufficient. For businesses with multiple drones, fleet policies can offer cost savings and simplified management. Fleet insurance often includes coverage for all aircraft under one policy, which can be more convenient and economical.

How does drone insurance differ from traditional aircraft insurance for commercial use?

Drone insurance is specifically designed for small unmanned aircraft systems (sUAS) and covers unique risks like payload damage, data liability, and privacy concerns. Traditional aircraft insurance covers manned aircraft with different regulatory frameworks and risk profiles. Drone insurance policies tend to be more affordable and flexible, reflecting the smaller scale and different operational environment.

Read more about “Where Can You Fly Drones in the US? Top 10 Legal Spots! 🚁 …”

What are the consequences of operating a commercial drone without the necessary insurance coverage?

Operating without insurance exposes you to significant financial risk. If your drone causes injury or property damage, you could be personally liable for costly lawsuits, repairs, or medical bills. Many clients and job sites require proof of insurance, so lacking coverage can limit your business opportunities. Additionally, some states may impose fines or penalties for uninsured commercial drone operations.

Fly smart, stay insured, and keep those aerial adventures soaring high with confidence! 🚀

Review Team
Review Team

The Popular Brands Review Team is a collective of seasoned professionals boasting an extensive and varied portfolio in the field of product evaluation. Composed of experts with specialties across a myriad of industries, the team’s collective experience spans across numerous decades, allowing them a unique depth and breadth of understanding when it comes to reviewing different brands and products.

Leaders in their respective fields, the team's expertise ranges from technology and electronics to fashion, luxury goods, outdoor and sports equipment, and even food and beverages. Their years of dedication and acute understanding of their sectors have given them an uncanny ability to discern the most subtle nuances of product design, functionality, and overall quality.

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