Drone Insurance Cost

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Professional drone use has become increasingly popular. It is an easy way to show off an expansive property, survey land, capture exciting footage, or cover events. The possible uses are extensive; so are the potential liabilities.

Drone insurance cost varies based on a number of factors. In this guide, we will provide information to help you make the best decision about a drone insurance policy.

We Cover in this Guide

  • How much does drone insurance cost?
  • What is drone insurance?
  • How does drone insurance work?
  • What does drone insurance cover?
  • Types of drone liability insurance
  • Benefits and risks
  • Tips for buying
  • Extra coverage you may need
  • FAQ
  • Summary

How Much Does Drone Insurance Cost?

Drone insurance cost for up to a $1 million policy can range from $500 to $750 annually, depending on various factors, including experience and background, coverage choices and limits, and nature of the business. For instance, flying in a city, inside, or over water is higher risk and will have higher rates than surveying empty fields. Additionally, renting versus owning your equipment, the type of drones, and the additional equipment fitted on them greatly impacts premium prices.

What is Drone Insurance?

There are many risks involved in commercial drone use and your company could be held responsible. Like most liability policies, drone insurance protects your business against claims of injury or property damage caused by your drone, as well as harm to or loss of your drone itself. Whether a company’s income is directly related to drone operation or it’s just used to supplement their services, drone insurance is essential to protect your business.

How Does Drone Insurance Work?

Drone insurance policies cover damage to your own equipment as well as protect you from the harm your drone may cause. In order to receive such coverage, insurance providers need to determine the risk to your drone, other people, property, and potential losses. Additionally, you have to meet certain requirements to even be considered for coverage. Such conditions can include:

  • Minimum flight time hours logged
  • Having an updated maintenance log
  • Having an FAA drone pilot license
  • Automatically recording flight logs and details
  • Completion of drone pilot training program

Completing these will guarantee you get a policy at the best price and will assure potential clients that you provide the most reliable service.

What Does Drone Insurance Cover?

Drone insurance policies can cover incidents including:

  • Loss or damage to the drone and associated equipment
  • Protections for aircraft operators
  • Third party legal liability
  • Premises and fire legal liabilities

Your specific coverage will depend on the insurance package you choose and your declared limits. Review your policy to understand your coverage and add specialized insurance to fill in any gaps.

Types of Drone Liability Insurance

In this new and rapidly expanding industry, two insurance types have emerged as common and essential: hull coverage and liability policies.

Hull Insurance

This policy covers damage to the drone and related equipment. If operating small, cheap drones you can be excused for not being overly concerned about the cost of replacement. But hull insurance is essential when your drone is equipped with expensive sensors, GPS units, or cameras.

Liability Insurance

This coverage protects your business from liabilities resulting from damages to third parties. For instance, if your drone crashes into a car or building, liability insurance will cover the cost of repairs. Additionally, if an accident causes an injury, you are protected from a lawsuit and the potential damages and legal costs are covered.

Benefits and Risks

  • Compliance: Your business may need a minimum amount of insurance coverage before taking on a project. Most cities require insurance before granting filming permits, and larger companies request certificates of insurance for all their vendors.
  • Peace of mind: Drone insurance coverage allows your employees and clients to focus on immediate matters because they know that the company is protected from the worst case scenario.
  • Cover legal expenses: If a customer or third party sues your business for loss or harm from your drone, insurance will cover legal expenses, including attorney fees and settlements.

Tips for Buying

When considering drone insurance cost, consider the following:

  • Work with an independent agent: An independent agent will help you navigate the complexities of these relatively new policies and assemble the requirements to give you the best chance to obtain coverage at the cheapest rate.
  • Identify your risks: Be sure to thoroughly analyze the operations of your business and identify potential risks. After that, choose all the coverages you need.
  • Compare quotes: Policy costs vary between insurers. Consider several quotes to find the best rates and coverage.

Extra Coverage You May Need

In addition to the basic liability and hull insurance policies, you should consider the following coverages:

  • Commercial property: While hull insurance covers your drone and its equipment during use, it does not protect loss, damage, or theft while on your own property. In order to receive payment for repairs or replacement in such a scenario, you need commercial property insurance.
  • Errors & omissions: This policy covers you for mistakes that cause damage or financial loss to a customer. E&O insurance is necessary for all drone operating companies that provide services to clients.
  • Cyber liability: Covers you for damages or losses that occur if a hacker takes over your drone or gains access to the camera.


Can you lose your insurance?
Yes. Every insurance provider has exclusions, and if you fail to comply, you may lose your coverage. Make sure to thoroughly review your policy and keep up with its requirements.

Is drone insurance required by law?
Drone insurance is not currently required by the FAA, but certain states have their own requirements.

Do I need training to qualify for insurance?
Some drone insurance providers require training, minimum flying hours, and even certification in drone flying theory before offering coverage.


Drone insurance protects your business against potential financial ruin from lawsuits relating to your business activities.

By understanding drone insurance cost and determining the needs of your company, you can know that your policy covers potential risks and feel secure that your business is protected.

Typical cost is


Depending on experience and background, coverage choices and limits, and nature of the business, drone insurance policies range from $500 to $750 per year.

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