Drone Insurance Explained: How to Protect Your Investment
- A.E. Williams
- May 4
- 5 min read
Drones are changing aerial photography & videography in the modern world. That’s a sizable investment, particularly if you capture cinematic footage or pilot a commercial drone with all that equipment. But like any valuable equipment, drones come with risks. Crashes, flyaways, and liability issues are far more common than most pilots would like to admit. And that brings us to drone insurance.
More specifically, at JAB Drone, we want to help drone pilots stay current on drone technology events, receive updates on drone reviews, and, most importantly, learn how to protect their drones and maximize their investments. This section overviews drone insurance, who needs it, what it covers, and how to pick coverage for your situation.
What Is Drone Insurance?
Drone insurance is one such insurance that covers drone owners from all the risks of flying drones. This could include damages to the drone itself, liability for injuries or property damage while the drone is airborne or in operation, and various other coverage extensions for commercial operations.
Drone insurance. There are generally two main types of drone insurance:
Liability Insurance: Pays for damage or injury you cause to others.
Hull Insurance: Protects against physical damage or theft of your drone
Some policies may include payload coverage (like high-end cameras), ground equipment, and cyber liability for data breaches.
Is Drone Insurance Required?
In the United States, the FAA does not require recreational drone insurance. Despite that, if you operate commercial drones under Part 107 rules, many clients, locations, and partners will request proof of insurance before entering into a contract with you.
Recreational drone pilots might also want coverage. Here's why:
Drones can be expensive to replace.
A crash into a car, person, or building could lead to legal action.
Public parks and event venues may ask for insurance before granting flight permissions.
According to the FAA, drone accidents have increased with the growing number of drones in the sky. Because of this trend, insurance is becoming an innovative standard practice.
What Drone Insurance Includes (And What It Excludes)
The coverage offered by providers and the type of policy can influence this. Below are common coverage types you’ll find in most drone insurance policies:
What’s Typically Covered
Third-party liability: Injuries to people or property damage.
Drone damage (Hull insurance): Covers damage to the drone from crashes, weather, or theft.
Payload coverage: Protects cameras and sensors attached to your drone.
Ground station and equipment: Protects your controllers, monitors, and other gear.
In-transit damage: If your drone is damaged during shipping or travel.
Privacy claims: Some commercial policies include claims for data collection or invasion of privacy.
What’s Usually Not Covered
Damage from illegal or unauthorized flights (e.g., flying in restricted airspace).
General wear and tear.
Flying without proper FAA certification.
Drone racing incidents (unless specified).
Poor maintenance or negligence.
Always read the fine print. Every insurance company has its exclusions and limits that may affect your claim.
Recreational vs. Commercial Drone Insurance
Recreational Pilots
If you are flying for fun, you are not legally obligated to carry insurance. But errors can, and often are, made. For instance, liability insurance protects you from paying expenses out-of-pocket should your drone crash into a parked car or a person walking in a park.
You can often find recreational coverage through:
Homeowner’s or renter’s insurance riders
Dedicated drone insurance platforms like SkyWatch. AI or Verifly (now Thimble)
Model aircraft associations like the Academy of Model Aeronautics (AMA)
Commercial Drone Operators
Flying for business? Then, insurance is essential.
Use cases include:
Aerial photography for real estate
Drone videography for events or film
Land surveying and agriculture
Construction site mapping
Commercial policies also usually have much higher liability limits (sometimes $10M), plus they can cover multiple drones, multiple pilots, and on-demand flexibility.
Drone insurance: How much does it cost?
The price of drone insurance is dependent on
Type of coverage (liability vs. full coverage)
Coverage limits
Drone model and value
Flight history
Intended use (commercial or recreational)
Here’s a general cost breakdown:
Insurance Type | Average Cost (USD) |
Recreational Liability | $50–$100 per year |
Commercial Liability | $300–$750 per year |
Full Coverage (Hull + Liability) | $500–$1,500+ per year |
On-Demand Coverage | ~$10/hour or $30/day |
Some providers allow monthly or per-flight payments if you are a freelance operator or occasionally fly.
How To Select The Right Drone Insurance Provider
The options for drone insurance companies are plentiful. Here are reasons to weigh when comparing providers:
1. FAA-Approved Policies
Ensure the insurer understands FAA rules and covers flights under Part 107 if you fly commercially.
2. Customizable Plans
Can you select coverage limits or add extras like payload protection, international flight, or weather-related damage?
3. Claim Process
Look for providers with easy online claims, fast approvals, and good customer reviews.
4. On-Demand Options
Ideal for freelancers who don’t fly every week. Companies like SkyWatch.AI, Thimble, and DroneInsurance.com offer flight-by-flight coverage.
5. Bundling Discounts
Some of the best drone insurance companies for U.S. pilots include:
The Best Drone Insurance Companies in the U.S
Here are some of the top drone insurance companies for U.S. pilots:
Known for: On-demand drone insurance via app
Great for: Freelancers and small commercial operators
Notable: FAA-compliant, fast sign-up
Thimble (formerly Verifly)
Known for: Hourly and daily drone coverage
Great for: Recreational and one-off gigs
Notable: Easy mobile interface
BWI Aviation Insurance
Known for: Comprehensive commercial drone policies
Great for: Enterprise-level operations
Notable: Coverage for fleets and high-value drones
Known for: Customizable plans and monthly subscriptions
Great for: Professionals with multiple drones
Notable: Base coverage with optional add-ons
Tips to Keep Your Drone (and Your Premium) Safe
Insurance is essential, but prevention is even better. Here’s how to minimize accidents and insurance costs:
Follow FAA regulations and stay updated on local restrictions.
Use GPS return-to-home features in case of signal loss.
Keep the visual line of sight (VLOS) at all times.
Practice in open fields before flying in urban or commercial zones.
Log all flights to show insurers you’re a safe, responsible pilot.
Perform pre-flight checks for weather, battery levels, and propeller integrity.
Safe flying protects your investment and builds a record that could lead to lower insurance premiums.
Common Myths About Drone Insurance
“I’m flying for fun, so I don’t need insurance.”
Reality: You can still cause property damage or injuries. Liability protection is always worth considering.
“My drone is less than $1,000, so it isn’t worth insuring.”
Reality: Even inexpensive drones can lead to expensive accidents or lawsuits.
“My homeowner’s insurance will cover everything.”
Reality: Most policies exclude aerial activities unless you buy a specific rider.
Get Drone Insurance, Protect Your Passion
Whether flying high for aerial photography or drone videography, or pioneering the boundaries of drone technology, insurance is not only protection, but also an innovative business.
A smart policy could spare you thousands of unexpected costs and allow you to fly confidently. Insurance will probably be a baseline necessity as the drone industry develops, not a perk.
Ready to Explore More Drone Tips?
At JAB Drone, we break down everything you need to fly smart, from drone reviews to tutorials and tech tips. Check out our blog to stay updated on everything happening in the world of drones.
Protect your investment. Ensure your passion. And keep flying safely.
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