Understanding UAV Coverage Before You Fly
If you’re a commercial drone pilot under FAA Part 107, you’ve likely been asked to provide proof of insurance for a job. But what exactly is drone insurance? How does it work? And what do you actually need to be fully protected?
At BWI Aviation Insurance, we’ve been protecting pilots since 1977, and today we insure thousands of UAV operators nationwide. This guide will walk you through how drone insurance works for commercial operations, what it covers, how policies are structured, what it costs, and how to get covered fast.
What Is Drone Insurance?
Drone insurance is a specialized type of aviation insurance designed to protect commercial UAV operators from the risks of flying.
For business purposes, drone insurance typically includes:
- Liability coverage – Financial protection if your UAV causes injury or property damage to others.
- Hull coverage – Repair or replacement for your drone if damaged, destroyed, or stolen.
- Payload coverage – Protection for high-value mounted equipment like LiDAR, thermal cameras, or cinema rigs.
- Non-owned coverage – Liability coverage for drones you rent, lease, or subcontract.
- Event coverage – Short-term coverage for filming at weddings, concerts, or sports events.
How Drone Insurance Works in Practice
1. Risk Assessment
Before issuing a policy, insurers look at:
- The type and value of your drone(s)
- Your intended operations (real estate, inspection, agriculture, media, etc.)
- The coverage limits you need
- Your flying experience and safety record
2. Policy Selection
You choose coverage options based on your business needs. Most commercial pilots combine:
- Liability (required for contracts)
- Hull (protects your UAV investment)
- Payload (for expensive gear)
3. Premium Payment
You pay an annual premium for continuous coverage. For some event work, short-term policies are available, but annual coverage is usually more cost-effective for active operators.
4. Proof of Insurance
Your insurer provides a Certificate of Insurance (COI) showing coverage details. Venues, clients, and government agencies may require this before allowing you to fly.
5. Claims Process
If there’s an incident:
- Report it to your insurer immediately.
- Provide incident details, photos, and any relevant contracts.
- The insurer investigates and processes payment for repairs, replacements, or liability claims.
Why Commercial Operators Need Drone Insurance
Flying commercially means higher stakes. Even a small accident could cost thousands:
- A drone crashes into a parked vehicle at a corporate event → $3,000 in repairs.
- UAV blades cause a guest injury at a wedding → $12,000 in medical bills.
- A LiDAR unit is damaged during an infrastructure survey → $10,000+ replacement cost.
Without insurance, you’d be paying all of that out of pocket.
See also: Drone Liability Insurance | Hull Insurance for Drones
Types of Drone Insurance Policies
Annual Policies
- Best for frequent flyers and year-round operations.
- Meets contract requirements for long-term projects.
- Lower cost per month compared to short-term.
Learn more: Annual Drone Insurance
Short-Term Policies
- Good for one-off events or seasonal work.
- Higher cost per day than annual coverage.
- May not satisfy all client requirements.
Learn more: Drone Insurance for Events
Fleet Policies
- Covers multiple drones and pilots under one contract.
- Easier administration for larger operations.
Learn more: Drone Fleet Insurance
How Much Does Drone Insurance Cost?
Typical Annual Premiums for Commercial UAV Operators:
- Liability-only ($1M limit): $275–$350/year
- Liability + $2,500 hull: $600–$800/year
- Liability + $10K hull + $5K payload: $1,000–$1,400/year
Cost Factors:
- Drone model and replacement value
- Type of operation (media, inspection, agriculture, events)
- Coverage limits and add-ons
- Pilot experience and certifications
See: Drone Insurance Cost Guide
Drone Insurance vs. DJI Care Refresh
Many DJI pilots think DJI Care Refresh is enough coverage. For commercial work, it’s not.
- DJI Care: Repairs/replaces DJI drones for accidental damage.
- BWI: Covers liability, hull, payload, theft, and meets contract requirements.
For the best protection, many commercial pilots carry both, BWI for insurance, DJI Care for fast manufacturer repairs.
See also: DJI Drone Insurance vs. BWI
How to Get Drone Insurance in 3 Steps
- Get a Quote – Use the BWI drone insurance form or call 800-666-4359.
- Select Your Coverage – Choose limits, hull values, and any add-ons you need.
- Receive Your Certificate – Same-day issuance so you can start or continue work immediately.
Final Word
For commercial UAV operators, drone insurance isn’t just a box to check, it’s the foundation of safe, compliant, and professional operations. Understanding how it works helps you choose the right coverage, protect your assets, and win bigger contracts.
With BWI drone insurance, you get comprehensive protection, competitive rates, and fast service, so you can focus on flying.
Request Your Commercial Drone Insurance Quote Today>>
Continue Reading
