The Guide to Drone Pilot and Drone Business Insurance
If you’re an FAA-certified drone pilot looking to start or grow your drone business, insurance is one of the most important investments you can make. Whether you’re capturing stunning aerial photographs, inspecting infrastructure, or conducting land surveys, having the right insurance protects both your business and your clients.
In this guide, we’ll explore the key types of insurance for drone pilots, why it’s essential, what’s legally required, and how to choose the best policy for your business.
Why Do Drone Pilots Need Insurance?
Drones, or unmanned aircraft systems (UAS), come with unique risks. Accidents, equipment failures, or property damage can happen even if you’re an experienced pilot. Drone insurance helps protect you from these risks, ensuring that a single mistake doesn’t financially ruin your business.
Here’s why drone insurance is crucial:
- Legal Protection: Many contracts and clients require drone pilots to have insurance before they’ll work with you.
- Financial Security: Accidents or damage to expensive equipment can be costly. Insurance minimizes out-of-pocket expenses.
- Client Trust: Having insurance signals to clients that you’re a responsible, professional operator.
- Compliance: While the FAA doesn’t currently mandate insurance, some local jurisdictions or industry-specific operations (e.g., construction or government projects) may require it.
Types of Drone Insurance
There are several types of insurance policies that drone pilots and businesses should consider. Each type serves a different purpose and offers varying levels of protection.
Liability Insurance
- What It Covers: Damage to buildings, vehicles, or other property; injury to people caused by drone operations.
- Typical Coverage Amounts: Ranges from $500,000 to $5 million, depending on the risk level of your operations.
- Why You Need It: Most clients and contracts require liability insurance as a minimum.
Hull Insurance (Drone Equipment Insurance)
- What It Covers: Damage to the drone, gimbal, cameras, sensors, and other equipment caused by crashes, water damage, or theft.
- Why You Need It: Drones and their accessories are expensive. Hull insurance ensures you can replace or repair your equipment without a financial hit.
Payload Insurance
- What It Covers: Damage or loss of payload equipment attached to your drone.
- Who Needs It: Pilots conducting high-tech operations like surveying, mapping, or inspections.
Business Insurance (General Liability)
- What It Covers: Non-drone-related risks, such as injuries that occur at your office or damage caused by employees.
- Why You Need It: Protects your business as a whole, especially if you operate beyond drone services.
Professional Liability Insurance (Errors and Omissions)
- What It Covers: Legal claims related to errors in your work, such as delivering inaccurate data or missing deadlines.
- Who Needs It: Pilots conducting inspections, surveys, or data-driven operations.
Workers’ Compensation Insurance
- What It Covers: Medical expenses and lost wages for employees injured on the job.
- Who Needs It: Drone businesses with multiple employees.
Short-Term or On-Demand Insurance
- What It Covers: Liability coverage for specific jobs or time periods, sometimes as short as an hour.
- Why It’s Useful: Flexible for pilots who only fly occasionally or as-needed.
What Insurance Is Legally Required?
The FAA currently does not mandate drone insurance at the federal level. However, there are cases where insurance may be required:
- Client Requirements: Many clients will only hire insured pilots.
- State and Local Regulations: Some local governments or states may require insurance for commercial drone operations.
- Industry Standards: Industries like construction, real estate, and energy often require specific coverage for contracts.
Even if it’s not legally required, having insurance is a smart business decision that protects you from costly lawsuits or damages.
How Much Does Drone Insurance Cost?
The cost of drone insurance varies based on several factors:
- Type of Coverage: Liability insurance is usually the most affordable, while equipment and professional liability policies add to the total cost.
- Coverage Limits: Higher coverage amounts mean higher premiums.
- Type of Operations: High-risk activities like inspections near critical infrastructure may cost more than simpler jobs like aerial photography.
- Frequency of Use: On-demand policies cost less but may not offer the same protection as annual plans.
Here’s a general breakdown:
- Liability Insurance: $500–$2,000/year for $1 million in coverage.
- Hull Insurance: 10%–15% of your drone’s total value.
- On-Demand Insurance: $5–$15/hour depending on the job.
Where to Get Drone Insurance
Here are some reputable providers for drone insurance:
- Verifly: Specializes in on-demand liability insurance with flexible options.
- SkyWatch.AI: Offers customizable plans with real-time flight analysis to improve safety.
- Global Aerospace: Provides comprehensive annual policies for professional drone pilots.
- Thimble: Affordable short-term and annual coverage for small businesses.
- CoverDrone: International coverage with extensive options for commercial pilots.
Tips for Choosing the Right Policy
- Assess Your Needs: Determine what types of operations you’ll be conducting and choose coverage that matches your risks.
- Start with Liability Coverage: At a minimum, ensure you have liability insurance for peace of mind and client requirements.
- Compare Providers: Get quotes from multiple insurers to find the best balance of coverage and cost.
- Understand Exclusions: Read the policy carefully to know what is and isn’t covered.
- Bundle Policies: If you need multiple types of insurance, bundling them with one provider may save money.
Final Thoughts: Protect Your Business and Your Future
Insurance is not just an expense—it’s an investment in your business’s longevity and credibility. By securing the right coverage, you can focus on growing your drone business without worrying about unexpected risks.
Whether you’re a seasoned drone pilot or just starting your journey, taking the time to understand and invest in insurance is one of the smartest decisions you can make. Get insured, stay protected, and let your business soar!
