Understanding UAV Coverage Before You Fly
If you operate drones commercially under FAA Part 107, you’ve probably been told you need drone insurance, but what does that really mean?
Drone insurance works much like other forms of business or aviation insurance: it protects you from financial loss if something goes wrong during your operations. Whether it’s damage to your drone, injury to a person, or harm to someone’s property, the right policy ensures you’re not paying out of pocket for costly accidents.
At BWI Aviation Insurance, we’ve been insuring aircraft since 1977, including thousands of commercial drone operators—and in this guide, we’ll explain exactly how drone insurance works, what it covers, and how to get a policy that’s right for your business.
The Basics: What Drone Insurance Is
Drone insurance is a specialized form of aviation insurance designed to protect commercial UAV operators from the risks of flying.
A policy can include:
- Liability coverage – Protects you if your drone injures someone or damages property.
- Hull coverage – Pays to repair or replace your drone if it’s damaged, lost, or stolen.
- Payload coverage – Covers high-value mounted equipment like LiDAR or thermal cameras.
- Non-owned coverage – Protects you when flying drones you don’t own.
- Event coverage – Satisfies insurance requirements for weddings, concerts, sports, and other gatherings.
Get Your Drone Insurance Quote Today>>
How Drone Insurance Works in Real Life
1. You Choose the Coverage You Need
Policies are customized based on:
- The type of work you do (inspection, events, agriculture, media, etc.)
- The value of your drone(s) and equipment
- The liability limits required by your contracts
2. You Pay a Premium
This is the cost of the policy, typically paid annually.
3. You Get Proof of Coverage
Known as a Certificate of Insurance (COI), clients and venues may require this before you fly.
4. If Something Happens, You File a Claim
For example:
- Drone collides with a building and damages property
- UAV is stolen from your vehicle
- High-value camera payload is destroyed during flight
Your insurer investigates the claim and, if approved, pays for repairs, replacements, or settlements.
Core Coverages Explained
Liability Coverage – Your First Line of Defense
- Covers injury or property damage caused by your drone.
- Often required by clients and venues.
- Common limits: $1M for most contracts, higher for government or industrial work.
See: Drone Liability Insurance
Hull Coverage – Protecting Your Investment
- Pays to repair or replace your drone if it’s damaged, lost, or stolen.
- Insures for replacement value, not original purchase price.
See: Hull Insurance for Drones
Payload Coverage – Safeguarding Specialized Equipment
- Covers mounted gear like sensors, cameras, or sprayers.
Non-Owned Coverage – When You Don’t Own the Drone
- Liability protection for rented or subcontracted UAVs.
Event Coverage – For High-Risk, High-Visibility Jobs
- Meets venue requirements for public gatherings.
See: Drone Insurance For Events
Annual vs. Short-Term Drone Insurance
Annual Policies
- Best for active operators who fly year-round.
- More cost-effective over time.
Short-Term Policies
- Great for one-off events or seasonal work.
- Higher daily cost than annual coverage.
Cost Factors: What Affects Your Premium
- Coverage limits – Higher limits cost more.
- Drone value – The more your drone is worth, the higher the hull premium.
- Payload value – Specialized gear increases premiums.
- Type of work – Riskier jobs (like flying over crowds) cost more.
- Experience – Pilots with more hours and no claims may get better rates.
Typical Annual Pricing:
- $1M liability-only: $275–$350/year
- $1M liability + $2,500 hull: $600–$800/year
- $1M liability + $10K hull/payload: $1,000–$1,400/year
See: Drone Insurance Cost Guide
Why Drone Insurance Matters Even If It’s Not Required
While the FAA doesn’t mandate drone insurance, many clients, venues, and government agencies do. Without it:
- You may lose contracts
- You could face devastating out-of-pocket costs
- You risk damaging your professional reputation
How to Get Drone Insurance in 3 Steps
- Request a Quote – Use the BWI Online Form or call 800-666-4359.
- Customize Your Coverage – Match limits and coverages to your operations.
- Get Your COI – Often the same day, so you can start work without delays.
Why Choose BWI for Your Drone Insurance
- 45+ years of aviation insurance expertise
- Licensed in all 50 states
- Same-day quotes and certificates
- Custom policies for any UAV business type
- Access to top-rated carriers
Read more: About Us
Final Word
How does drone insurance work? It works by protecting you from financial risk so you can operate your UAV business with confidence. With the right policy, you can meet client requirements, protect your investment, and recover quickly from unexpected incidents.
With BWI, you get competitive rates, tailored coverage, and unmatched service—so you can focus on flying, not worrying.
Request Your Drone Insurance Quote Today>>
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