Why Part 107 Pilots Need Drone Liability Coverage

Liability Protection Is the Most Important Insurance for Commercial UAV Operators

If you hold an FAA Part 107 Remote Pilot Certificate, you’ve met the federal requirements to fly drones commercially. But passing the test and following FAA rules is just the beginning. To operate professionally, protect your business, and win more contracts, you need drone liability insurance.

At BWI Aviation Insurance, we insure thousands of Part 107 pilots across the U.S., and liability coverage is the first and most essential policy every commercial UAV operator should carry.

What Is Drone Liability Insurance?

Drone liability insurance covers you financially if your UAV causes:

• Bodily injury to a person (medical bills, legal defense, settlements)
• Property damage to third-party property (buildings, vehicles, equipment)

It’s the commercial drone pilot’s safety net, without it, you could be personally responsible for damages and legal costs.

See: Drone Liability Insurance

Why Liability Coverage Matters for Part 107 Pilots

Flying commercially means you’re often operating:

• Near people and property
• In busy work environments like construction sites, events, or industrial facilities
• Under contractual obligations that demand proof of insurance

Even with perfect piloting skills, accidents can happen:

• Your drone’s battery fails mid-flight, hitting a parked car.
• A strong wind gust sends your UAV into a wedding tent, injuring a guest.
• You clip a power line during an inspection, causing equipment damage.

Without liability insurance, these incidents could cost tens of thousands of dollars out of pocket.

Part 107 and Client Requirements

While the FAA doesn’t require drone liability insurance, clients, venues, and government agencies often do. Common requirements include:

• $1M+ liability coverage minimum
• Listing the client or venue as an Additional Insured
• Providing a Certificate of Insurance (COI) before the job starts

Without meeting these requirements, you could lose the contract.

See: Part 107 Insurance

How Much Liability Coverage Should You Carry?

Coverage limits depend on your operation type:

• $500K – Minimum for very small, low-risk jobs
• $1M – Standard for most commercial contracts
• $2M–$5M – Common for government or industrial work
• $10M+ – Required for high-risk or large-scale projects

At BWI, we can write policies for any of these limits to match your client requirements.

Drone Liability Insurance vs. DJI Care Refresh

Many DJI pilots ask if DJI Care Refresh is enough coverage. It’s not.

• DJI Care Refresh: Repairs or replaces your DJI drone for accidental damage.
• Liability Insurance: Pays for injuries, property damage, and legal defense.

For full protection, you need liability coverage — DJI Care won’t cover third-party claims.

See: DJI Drone Insurance vs. BWI

Real-World Liability Claim Examples

Case 1 – Real Estate Shoot Gone Wrong

A Part 107 pilot filming a luxury property accidentally crashes into the client’s imported sports car.

• Repair cost: $18,000
• Liability insurance covers the full amount, plus $2,000 in legal fees.

Case 2 – Event Accident

During an outdoor festival, a UAV loses GPS signal and collides with a vendor tent, injuring two attendees.

• Medical bills + equipment damage: $27,000
• Liability insurance pays all costs and legal defense.

How Much Does Drone Liability Insurance Cost?

Typical Annual Premiums:

• $1M liability-only: $275–$350/year
• $2M liability-only: $400–$550/year
• $5M liability-only: $900–$1,200/year

Factors affecting cost:

• Coverage limit
• Type of operations
• Pilot experience and claims history

See: Drone Insurance Cost Guide

How to Get Liability Coverage as a Part 107 Pilot

1. Get a Quote – Use our drone insurance form or call 800-666-4359.
2. Select Coverage Limit – Match your typical contract requirements.
3. Receive Certificate – Same-day issuance so you can start the job without delay.

Final Word

 

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