According to research, the global drone market’s value is predicted to increase to $63.05 billion by 2028. The growth rate is almost 16.01% from 2021 to 2028.
If you own a drone or plan to get one, know that you will soon be a part of a prevalent industry. Drone technology is unique and valuable and has a very stable future.
However, getting this unmanned aerial vehicle shouldn’t be your ultimate goal. A solid drone insurance plan is vital to mitigate risks and reduce your liabilities. In this drone insurance guide, we will explore all the reasons to get a proper insurance plan and the types of policies available.
Why Do You Need Drone Insurance?
Whether you are an experienced pilot or a newbie, flying a drone is a tricky and pretty risky task. Accidents may still happen even if you are a proficient pilot with all the knowledge and tools to make your flight successful.
Since drones are categorized as aircraft, they can lead to property and bodily damages, which you might fail to cover. This is especially true when drones are implemented in the workplace. If you run a drone business, many obstacles increase the chances of accidents despite all your safety precautions.
Knowing all the risks while managing a drone business or a program is imperative. You have to create a secure environment so your business can thrive, and the first exercise to achieve that is by getting proper drone insurance.
If you are a hobbyist, getting insurance might not be essential. But there is no harm in exploring your policy options for your own peace of mind.
On the other hand, if you use drones commercially, it is imperative to consider an insurance policy. This is because drones used commercially are often expensive and considered an asset, so any harm caused by them might be a significant expense.
What Does a Drone Insurance Policy Cover?
Drone insurance is similar to car insurance as it protects owners against third-party claims of injuries or property damages. If you live in the USA, buying a drone insurance plan is no legal obligation. The Federal Aviation Administration allows you to weigh all the pros and cons before making this expense.
There are, however, certain states that have specific rules for aircraft. Drone insurance is an excellent way to protect your money from unwanted experiences. It should be considered a key company policy for drone businesses so that flying a drone commercially doesn’t feel like a burden.
Different Types of Drone Insurance Policies
This part of the drone insurance guide discusses all the insurance policies available for you. There are four main types, and each comes with its own coverage.
Aviation Liability Insurance
This policy protects you from third-party claims of property damages or injuries. For example, if your drone accidentally hits someone’s property and causes damages, the insurance can cover all the claims that the victim may demand. Liability insurance offers various levels of coverage, depending on your requirements.
You may consider buying personal insurance if you want to use your drone for personal use only. It provides coverage against claims made by a private property owner for any damages your drone may have caused.
This policy protects the drone rather than the people or spaces around it. A hull insurance policy covers expenses related to the replacement and repair of the drone after an accident. It may also cover particular labor or legal costs associated with the incident.
Medical Payments Insurance
If your drone accidentally injures someone, you might be forced to pay thousands of dollars for their medical expenses. However, with medical payments insurance, the insurance provider is responsible for covering these expenses.
Other than these four, cyber liability insurance covers all expenses incurred on costs related to a cyber attack on your drone during its flight. There is also a drone warranty coverage, usually covered under the hull insurance policy’s cost. It is worth having this insurance if you own a high-end drone.
What Is the Cost of Drone Insurance?
Many people don’t consider drone insurance because they perceive it as expensive. The truth is that the cost depends on many factors, and giving it a label of “expensive” may not be the right thing to do.
Your chosen drone insurance’s costs depend on specific considerations, such as :
- Type of your drone: If you own an expensive drone, the cost of coverage required would be high as well. This is because you might need extensive protection. Many insurance providers can get you a great deal, so keep your hopes high.
- Type of coverage: The type of insurance you opt for also affects its cost. The best advice is to get a combination of liability insurance and hull insurance and coverage for different circumstances.
- Experience of the operator: Your insurance policy might be expensive if you lack the skills to fly a drone. Your lack of experience would result in high premiums, increasing the policy’s overall cost.
- Safety precautions: The price may also vary according to the safety precautions you might have placed. If your area is drone-proof, you may not have to pay for a costly insurance policy. In a case where many buildings and houses are around, the chances of damages may increase, resulting in an expensive drone insurance policy.
Choose Drone Insurance Policy and Protect Yourself Against Damages
Think of all the times you wanted to fly a drone but hesitated after anticipating the damages it may cause. A well-curated insurance policy gives you peace of mind and allows you to fly this vehicle without any concerns. And if you want to use a drone commercially, an insurance policy ensures that it provides you enough coverage on any damages it may cause.
If you are thinking of getting drone insurance, BWI Aviation Insurance may help you do that. It sells insurance policies to pilots and aircraft owners at great rates. This insurance provider has trained insurance professionals with years of experience to provide you with the best plans.