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Drone Insurance: Everything You Need To Know

We are going to discuss drone insurance today. If you are a regular follower of FAA (Federal Aviation Administration), you should know by now that they recently said out loud that commercial drones can operate in United States. This is an wonderful approach by FAA as it opened up lots of opportunities for dronepreneurs (Drone based entrepreneurs) and for those out there who have already built a hobby of flying drones or quadcopters.

drone insurance

Well, before we move ahead with drone insurance and all the details, you must have a basic question by now. Do i need a drone insurance if i am only flying for fun? The short answer is No! you don’t need a drone insurance if you are only flying for fun on your yard or at a beautiful location. In many cases, your regular homeowner insurance will cover the drone part too and there is nothing extra that you will have to do. The best idea is to ask your insurance provider. Simply send them an email and ask them whether the insurance is now covering drones too or not. The policies are a bit tricky so you better be careful. If you are not operating a business but are paid by someone else to fly your drones around, that will be considered a business in most cases by your insurance providers. Again, the easiest solution is to send them and email and ask. We asked our followers about their drone insurance issues and most replied that their basic homeowner’s insurance is covering the drone part too.

Now let’s focus on the other side of the table. Do you need drone insurance for drones that you will commercially operate? The short answer is Yes! you do and it will be a wise idea to go for it before you take that first flight for your business. Drone insurance was not in the picture even two years ago. Since then, this hobby started to boom and within 2015, FAA had to come up with new laws and regulations regarding UAVs. If you are a regular reader of our blog, you know that we did an article on Drone registration.

The picture has totally changed now. There are companies available around us these days who have special packages on drone insurance and some only provide drone insurance and nothing else.

Let’s face the idea in a simpler way. If you are making money with your drones and quadcopters, why would you want to take that risk? You never know when an eagle snatch your drone away, do you? (Check this for reference) As this is a business scenario and as we all know that there can be unthinkable accidents with flying objects, it is a smart idea to insure your drone immediately.

Note that FAA does not require you to go for a drone insurance in United States no matter whether you are operating your drone commercially or personally. However, if you are a citizen of Canada and you are operating a business with the help of drones, you need to go for a liability registration.

In many cases in both US, Europe and in other parts of the world, you need to have an insurance package for your drone to get big projects such as filming advertisements, city projects and more.

In short, you can always go for a drone insurance if you are feeling insecure about your quadcopter. This is not a must but a good thing to do.

What Will Be The Cost

It is important to know about the costs related to drone insurances if you are serious about it. Obviously, each insurance company has their own plan and they vary from each other but we did an overall research to come up with some numbers.

Currently, there are two basic types of drone insurance policies which are:

  • Liability based
  • Hull damage based

So for example if you own a bunch of DJI Phantom 3 for your businessIn this case, the liability can go up to a million where the hull damage will be around $1000 per year. Please note that the amount largely varies from companies to companies and therefore, do not come up with a final decision seeing these numbers. 

How to Get The Drone Insurance

Well the process is simple and like your other insurance projects. At first, you will have to search for insurance companies around you who are providing drone insurance deals. Send a couple of emails or fill out those quote forms from insurance company websites and collect all their ‘quotes’ so that you can take the best decision.

You will need a bunch of information while preparing the insurance files. These include information like whether you have that 333 exemption or not and some basic details. You can check this form from Aviation Insurance  to get the idea. 

Some More Information

Are these drone insurances risky? Can you lose them in different circumstances? Well again, different companies have different policies but the short answer is Yes! you can lose your insurance if you do not maintain the criteria set at the beginning. These criteria may include logging your flights on a daily basis, having the serial number on your drone (FAA also requires it now) and many more.

We think we covered enough. Do you have questions? Please ask us in the comment section below and we will try to reply you as soon as we can. We wish you best of luck in your dronepreneurship journey.

About Insanity

1nsan1ty is the main contributor for DroneReviewed.com - his love of everything drones, custom builds, and no BS content makes him a trusted source.

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3 comments

  1. WHAT IS THE 333 EXEMPTION?

    • Steve, if you are living in USA and if you want to fly quadcopters professionally then you will need a 333 exemption certificate from FAA.

  2. I have my Quad registered, but do not care to explore the commercial uses of the device or the camera at this time. I would like to take photos as a hobbyist and share them with others.
    Would this type of usage require insurance?

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