When people think about insuring a drone, they often picture protecting the drone itself, the cost of replacing a DJI Mavic, a $20,000 agricultural sprayer, or a $30,000 industrial quadcopter. While hull coverage is important, the far bigger risk is what happens when your drone causes damage or injury.
That’s where drone liability insurance comes in. Liability coverage is the foundation of every drone policy and, in many cases, the coverage your clients and contracts will require. In this guide, we’ll cover what liability insurance is, how it works, what it costs, and why it’s essential for anyone flying drones commercially or recreationally.
What Is Drone Liability Insurance?
Drone liability insurance is designed to protect you against third-party claims, meaning damages or injuries caused by your drone to someone else.
Examples include:
- Your drone collides with a building and breaks a window.
- A drone accident at a wedding injures a guest.
- During an inspection, your drone crashes into a client’s vehicle.
Without liability coverage, you could be personally responsible for medical bills, repair costs, and even lawsuits.
Why Liability Coverage Is Critical
- Bigger Risks Than the Drone Itself
A drone might cost a few thousand dollars, but the damages it can cause can easily exceed $100,000.
- Required by Contracts
Corporate clients, government entities, and even film productions almost always require proof of liability insurance before you fly.
- Legal Defense
Liability insurance doesn’t just cover damages, it also provides legal defense if you’re sued.
- Protects Your Business Reputation
Being able to show you’re insured builds trust with clients and partners.
Get Your Quote For Drone Liability Insurance Today>>
How Much Liability Coverage Do You Need?
Coverage amounts vary depending on your operations:
- Recreational Flyers: $500,000–$1M liability is common.
- Small Commercial Operators: $1M liability is the industry standard.
- Larger Businesses or Government Contracts: $2M–$10M liability may be required.
- Enterprise or Industrial Operators: Some projects demand $25M+.
At BWI, we’ve placed policies at every level, from hobbyists to large-scale industrial drone fleets.
What Does Drone Liability Insurance Cost?
Premiums are based on factors like:
- Liability limit ($1M vs $10M)
- Pilot experience (Part 107 certification, hours flown)
- Type of operation (real estate vs. power line inspection)
- Claims history
Typical ranges:
- $300–$600 annually for $500,000 coverage
- $600–$1,200 annually for $1M coverage
- $2,000–$5,000+ for high-limit corporate policies
Compared to potential losses, liability coverage is affordable protection.
What Liability Insurance Doesn’t Cover
It’s important to understand the exclusions:
- It doesn’t cover damage to your drone (that’s hull insurance).
- It doesn’t cover intentional illegal activity.
- Some policies exclude high-risk operations (beyond-visual-line-of-sight, night operations) unless specifically added.
Customer Story: Why Liability Matters
One of our clients, a drone pilot hired to film a music festival, was flying over the crowd when the drone’s GPS malfunctioned. The aircraft clipped a lighting rig, sending equipment tumbling and injuring a stagehand.
The damages exceeded $80,000, and the event organizer filed a lawsuit. Thankfully, the pilot carried a $1M liability policy with BWI. The insurer covered the claim and provided legal defense, allowing the pilot to continue his career.
Without liability coverage, he could have lost everything.
Why Choose BWI for Liability Insurance?
- Specialized Expertise: Aviation is our only focus.
- High Liability Limits Available: From $500K to $25M+.
- Fast Certificates: We provide proof of insurance so you can meet contract deadlines.
- Claims Advocacy: If something happens, you’re not alone, we handle the process with you.
Conclusion
Hull insurance protects your drone. Liability insurance protects you, your business, and your financial future.
Whether you’re a weekend pilot or a commercial operator signing big contracts, liability coverage is the most important part of your drone insurance policy.
Get a drone liability insurance quote today with BWI and fly with confidence.
Bwifly.com / 800-666-4359
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