Do you own and operate an unmanned aircraft system (UAS), also referred to as a drone? Is that drone for recreational purposes, or for commercial purposes? The decision on whether or not to choose drone insurance can be a tricky one, but it is important considering the cost of your investment.

Currently there is no requirement in the US that drones be covered by insurance for recreational or commercial use. However, other countries do require a minimum liability coverage. It is safe to assume drone insurance in the U.S. is probably not far off. Additionally, some companies will require minimum liability coverage if you intend to use your drone commercially, such as securing a filming permit.

What does drone insurance cover?

Just like any traditional insurance plan, a policy for a drone will cover the policy holder from damages caused by their drone.

It is possible that drones for personal, or hobby use, will be covered by a homeowner’s or renter’s insurance policy if damages are caused by your drone. However, there are limitations to this. You’ll want to check your policy to make sure that a drone is covered. Your drone might be referred to as a hobby or model aircraft.

Example:  There are many situations when you may need to have drone insurance coverage. For example, you are flying your drone in your back yard and you accidentally crash it into your neighbor’s window. Your homeowner’s policy, in most cases, will cover the damage caused to replace your neighbor’s window, though it probably will not replace your drone.

Not sure if your homeowner’s policy or renters policy covers drones? The best thing to do is to call them and ask.

But please note, homeowner’s or renter’s policy will NOT cover any commercial use of your drone. Instead, you’ll want to pursue a separate commercial liability insurance policy for your drone.

Commercial Drone Insurance

A commercial drone policy can cover either physical damage to drones or any liability that arises from the operation of your drone. Should you use drones for any commercial purpose, it is important to make sure you are adequately insured.

So, how much coverage should you have?

You’ll need to consider the following factors before deciding on what level of insurance to get.

What is your business?

What industry does your business fall under? Many industries, will require higher liability coverage than others due to the nature of the business.

Who are your customers?

Some higher profile clients will require a much higher level of coverage than most. Example: a corporation will have more stringent requirements than a private individual client.

The worth of your asset

Think about how much your drone is actually worth. If you own and are flying a high end drone, valued over $50,000, you’ll want to have more coverage than if you own a drone that cost $500.  If you can show proof of training, high standards of operations and management, you might qualify for a better rate for coverage.  It is never a bad idea to ask your clients what their requirements for liability coverage entail. The more you know the easier it will be to shop for a policy that meets your needs. Usually, minimum liability coverage requirements will be in the $100,000 range.

What will commercial drone insurance cost me?

The answer is simple and complex at the same time.  It depends on many variables. You’ll want to consider the above listed factors when considering level of insurance. The cost can range from about $600 per year to up to $1,350 per year, depending on level of coverage chosen. Your deductible can vary between 10—15 percent.
Keep in mind, to retain coverage, you will have to meet safety standards. You will also have to keep detailed flight information and logs, and provide proof of your remote pilot status. Failure to do so might result in a loss of coverage or higher rates.

How do I obtain insurance for my drone?

In order to obtain insurance you will need to first shop the market for quotes from multiple companies in order to decide which will be the best fit for your needs. That process is usually simple, just go to the insurance company web site and locate the “get a quote” option. Fill out your information as requested, and a quote will usually be emailed to you within one business day or less.

Here is some information that insurance companies might ask of you:

1. Your personal information, including name, address and contact information
2. The type of coverage you are looking for
3. The value of your equipment that you are looking to insure
4. Specific identifying information (similar to a VIN on a car) for your drone
5. What type of commercial work you are planning to perform under this policy
6. Where you will be flying your drone
7. What is your training and hours of flying logged- basically your level of experience
8. Information about any previous accident or incident involving a drone
9. Any 333 exemptions (or Part 107) you might carry or other pertinent certifications

Once you’ve received the quotes from different insurance companies the process is fairly simple. You will be able to compare rates and coverage so that you can select the plan that best suits your needs.  After you make your selection you will be guided through the process by the insurance carrier.  Keep in mind you will need to be as honest as possible when soliciting quotes, so that you get the most appropriate quote that matches your situation. The underwriting process for vetting insurance will be hindered if you provide incorrect information.

I’ve got insurance, but how do I file a claim?

In the event that you do need to file a claim with your insurance carrier, it is important to know how to file a claim with your provider. The process is normally the same with each company, but might vary based on individual company policy:

1. Know your insurance policy. The more you know about your policy, and what is and is not covered, the easier your process will be. This is your user guide on how to navigate your insurance company.
2. Notify your insurance company as soon as possible if an incident occurs. Procrastination will do nothing but harm your case if you fail to immediately report an incident that occurs with your drone. The insurance company will want to know the details of the incident, including contact information of anyone injured or any witnesses.
3. Call the authorities. If you have a theft or issue of vandalism, notify the proper authorities and file a police report
4. Protect your property. Don’t abandon your aircraft, secure your property if at all possible in order to prevent further damage
5. Work WITH your insurance company, not against them
6. Allow your insurance company to inspect and investigate your claim to the fullest extent they are able. Make sure to cooperate and work with the company’s representatives, this will pay off in the long run.

DroneVideos.com Drone Operators Insurance

All Drone Operators working for DroneVideos.com have at least $1,000,000 dollars in liability insurance. We feel that it’s important that all of our Drone Operators be protected and want our customers to be 100% confident when hiring one of our professionals to film your job. We are the only nationwide Drone Company in which all of our Drone Operators are fully insured.

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