Drone Insurance Guide: Do You Need It and How Much?
The FAA doesn't require it, but your clients will. Here's what drone insurance covers, what it costs, and when you absolutely need it.
You just dropped money on a drone, got your Part 107, and you’re ready to start earning. But do you actually need drone insurance? The short answer: legally no, practically yes.
Does the FAA Require Drone Insurance?
For Part 107 commercial operations, the FAA does not require liability insurance. But here’s why skipping it is risky:
- Clients demand it. Real estate agents, construction firms, and property managers will ask for a Certificate of Insurance (COI) before hiring you. No COI, no job.
- Local laws vary. Some states and cities require commercial operators to carry liability insurance regardless of federal rules.
- One accident can end your business. A drone falling on someone’s car — or worse, a person — without coverage means paying out of pocket.
Types of Coverage
Liability insurance covers third-party bodily injury and property damage. If your drone hurts someone or breaks their stuff, this pays for it. Most clients require $1M or $2M in liability coverage.
Hull coverage is collision insurance for your drone. It covers the aircraft itself if it’s damaged or destroyed in a crash.
Equipment coverage protects your camera, gimbal, lenses, and accessories — whether attached to the drone or not.
Real-World Scenarios
A gust of wind catches your drone during a real estate shoot. It plummets onto the hood of the client’s Mercedes. Without liability, you’re paying for that repair yourself.
Your drone suffers a mechanical failure over a public park and injures a bystander. Medical bills can hit six figures. Liability coverage turns a catastrophic event into a phone call to your insurer.
A flyaway sends your drone into a commercial building. You’re out an aircraft and on the hook for brickwork damage. Hull + liability would cover both.
How Much It Costs
Hobby pilots: Personal liability runs $30-60/year. Joining the Academy of Model Aeronautics (AMA) at about $80/year includes $2.5 million in liability coverage for recreational flying.
Commercial pilots: A standard liability policy runs $500-800/year for $1M or $2M in coverage. Hull insurance costs 5-10% of your drone’s value annually — so a $2,000 drone costs $100-200/year to insure.
Where to Get It
Recreational: AMA membership is the best deal — $2.5M liability included.
Commercial: Specialized providers like SkyWatch, Thimble, and DroneInsurance.com offer drone-specific policies. You can get quotes in minutes through their apps.
Home insurance add-on: State Farm’s personal articles policy can sometimes cover drones and camera gear, though commercial use restrictions may apply. Check the fine print.
When You Absolutely Need It
- Flying over people — enormous liability risk
- Government contracts — agencies won’t let you bid without proof of insurance
- LAANC operations near airports — airport authorities often require documented coverage
- Any client who asks for a COI — no certificate, no job
Per-Mission vs. Annual Policies
Not flying every day? Per-mission insurance lets you open an app, punch in your location and drone, and buy coverage for a single flight — usually $10-20. Perfect for occasional commercial pilots.
Flying daily for mapping or inspections? An annual policy at $500-800 is more cost-effective. Pay once and never think about it again.
Bottom Line
Drone insurance transforms a catastrophic accident into a minor inconvenience. Don’t let one bad flight ruin your business or finances. Get covered, fly safe, and focus on capturing great footage.
Our free Drone Business Course covers insurance, business structure, and everything you need to operate legally.
