Agricultural drones are no longer future tech, they’re standard equipment in modern farming. From the DJI Agras T40 to custom spraying UAVs, drones are now critical tools for crop monitoring, spraying, and precision agriculture. But with that progress comes risk: high-value equipment, strict regulations, and real liability exposure.
That’s where insurance comes in.
But what does agricultural drone insurance really cost? Is it a few hundred dollars like your personal drone policy—or closer to the cost of insuring an aircraft?
Let’s break it down.
1. The Equipment Itself: Physical Damage (Hull) Coverage
Most agricultural drones used for spraying or large-scale mapping cost between $15,000 and $40,000. Models like the DJI Agras T40 can reach the higher end of that range once you include payloads, sensors, and batteries.
Hull insurance protects the drone against damage from crashes, weather, theft, or operator error. Based on real-world quotes, the annual hull premium for a $40,000 ag drone is typically:
- $4,000 to $6,000 per year
- Deductibles: $4,000 (in motion or not in motion)
Yes, that’s a significant number, but so is the investment.
2. Liability Coverage: Protecting Against Accidents and Lawsuits
Liability insurance covers bodily injury and property damage your drone may cause. Whether it’s a crash into a barn, injury to a farmworker, or overspray onto neighboring crops, this coverage is a must.
A typical agricultural drone policy includes:
- $1,000,000 in liability coverage
- Annual premium: $1,000 to $1,500
Some policies go as high as $5M limits for larger operations, which naturally increases premiums. However, most spraying operations are covered well at $1M to $2M limits.
3. Chemical Drift Liability: The Hidden Cost Most Farmers Miss
If your drone is applying herbicides, pesticides, or fertilizers, chemical drift liability becomes essential. Overspray can destroy a neighbor’s crop, contaminate livestock, or even cause health issues. The legal and financial stakes are high.
Chemical liability coverage isn’t always included in standard drone policies.
In one real-world quote:
- Chemical liability premium: $3,500 per year
- Limit: $100,000 per occurrence / $100,000 aggregate
Some carriers include this in the main liability policy. Others offer it as a separate endorsement. Always check.
4. Add-Ons and Endorsements
The total cost of insurance can increase based on endorsements like:
- Terrorism coverage (TRIA): ~$505
- War and hijacking coverage: ~$485
- Errors & Omissions (E&O): Varies by operation
- Payload coverage: Additional premium depending on the value of cameras, sensors, or spraying tanks
While these add-ons may seem optional, many operators choose them to meet vendor or contract requirements.
5. So, What’s the Real Cost?
For a professional ag drone like the DJI Agras T40, operated by a licensed Part 107 pilot with spraying under Part 137:
Here’s a real-world quote summary:
- Drone value: $40,000
- Hull insurance premium: $5,000
- Liability premium: $1,350
- Chemical liability: $3,500
- Terrorism/war coverage: ~$607
- Total Annual Premium: ~$10,457
While it may sound steep, keep in mind: you are protecting a high-value aircraft flying with chemical payloads over people, animals, and property.
6. Factors That Influence Cost
Several things affect your premium:
- Drone type and value
- Use case (spraying vs. mapping)
- Operator experience (Part 107 and 137 certified?)
- Flight hours logged
- Location and airspace restrictions
- Claim history or prior losses
Pro tip: logging every flight, maintaining clean maintenance records, and demonstrating pilot training can help reduce your premiums over time.
7. Is It Worth It?
If you’re running a drone commercially on a farm, the answer is a clear yes. Accidents happen, even with the best operators. Regulators are increasing scrutiny of aerial applications and drone safety.
One misstep, a chemical overspray, an FAA violation, or an equipment loss, could cost you tens of thousands. Insurance isn’t just peace of mind. It’s business protection.
Final Thoughts: Insurance Built for the Fields
Agricultural drone insurance isn’t a one-size-fits-all solution. It’s a layered policy designed to match the complexity of modern drone operations.
At BWI, we work with farmers, UAV service providers, and ag businesses every day to build the right insurance plan. We understand what matters: protecting your investment, your reputation, and your operation.
Get in touch with our team to get a fast, personalized quote. No pressure, just guidance.
Call 800.666.4359 or click the button below to get started.
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