Drone Insurance Companies: The 7 Best of 2023

Photographers, real estate agents, contractors, and others in the service industry can all benefit from using drones. If your drone weighs less than 55 pounds and you meet FAA regulations, you can fly it for business purposes. Your drone has a maximum altitude of 400 feet and a top speed of 100 miles per hour. However, a lot can go wrong at those velocities and altitudes. And if you have an accident while flying your drone, you could be held liable for significant injuries or property damage. That’s why it’s crucial to secure adequate drone insurance coverage. In this article, we will discuss the best drone insurance coverage companies and drone insurance costs.

What Is Drone Insurance Coverage?

Drone insurance coverage provides financial protection for individuals or businesses that operate drones (unmanned aerial vehicles). This type of insurance typically covers various aspects, including liability, physical damage, theft, and privacy concerns.

Protecting yourself from legal action about property damage or bodily injury caused by your drone is why liability insurance exists. Physical damage coverage covers drone repairs or replacements after accidents, natural catastrophes, or other covered situations. Theft coverage reimburses the policyholder if the drone is stolen.

Additionally, some policies may include coverage for payload (equipment or items carried by the drone), personal injury liability (covering non-physical injuries like invasion of privacy), and business interruption (compensating for lost income if drone operations are disrupted).

Drone insurance depends on the drone’s purpose (recreational or commercial), value, and coverage limits. It is essential for drone operators to carefully review policy terms, conditions, and exclusions to ensure adequate coverage for their specific needs, especially considering the potential risks involved in drone operations.

What Kind of Insurance Do I Need for a Drone?

The type of insurance you need for a drone depends on how you intend to use it. For recreational drone hobbyists, insurance may not be legally required in all regions, but it’s still advisable to check local regulations and consider liability insurance. This coverage protects you if your drone causes property damage or injury to others.

Commercial drone operators, on the other hand, often require insurance due to the higher risks associated with business-related activities. General liability insurance is essential, covering third-party bodily injury and property damage claims caused by your drone. This insurance is often a legal requirement for commercial drone operators in many countries.

Moreover, commercial drone operators may opt for hull insurance, which covers damage to the drone itself, including crashes or equipment malfunctions. Payload insurance can be valuable if you carry special equipment or sensors on your drone, protecting these expensive components. If your drone operations involve transporting goods or people, additional coverage might be necessary, considering the heightened risks associated with these activities.

In summary, recreational users should consider liability insurance, while commercial operators should invest in general liability insurance, hull insurance, payload insurance, and potentially other special coverages depending on the nature of their operations. It’s crucial to consult with insurance professionals familiar with drone-related risks to tailor your coverage accordingly.

What’s Covered by Drone Insurance?

The different kinds of drone insurance coverage are as follows:

#1. Liability Coverage

Accidental damage to someone else’s property or bodily harm to another person are both covered by liability insurance. If your drone hit a building and shattered a window, your liability insurance would cover the repairs.

Also, if you are sued due to an accident, your liability insurance will pay for your legal defense as well as any verdicts or settlements. If you were to cause an accident that left another person injured, for instance, your liability insurance would pay for their medical bills and defend you in court.

#2. Hull Coverage/Physical Damage

If your drone is ever stolen or destroyed, the replacement cost won’t come out of pocket if you have hull insurance. This type of insurance is also referred to as “commercial drone physical damage coverage.”

Computers, phones, cameras, and tablets that aren’t tied to the drone itself might also not be covered by hull insurance.

#3. Optional Coverage for Equipment

In some cases, you can get supplemental insurance to help pay for the cost of repairing or replacing things like sensors and ground-based and airborne machinery you use.

Additional coverage can be purchased for sensors and ground equipment from droneinsurance.com, and additional coverage for controllers and launchers can be purchased from Global Aerospace.

#4. Medical Expense Coverage

If you or someone else is hurt while flying your drone, insurance coverage for medical expenses will help pay for the associated medical costs.

#5. Personal and Advertising Injury

Several various types of claims, including those for infringement of copyright, libel, slander, and invasion of privacy, are all covered by personal and advertising injury insurance.

Does My Home Insurance Cover My Drone?

According to the Insurance Information Institute (III), if you or a member of your family are sued for bodily injury or property damage after flying a drone for recreational purposes, the liability provision of your homeowner’s insurance policy may apply. The no-fault medical care provision of your insurance coverage may provide compensation if you or a visitor to your property sustains injuries as a result of a drone accident, regardless of who was at fault.

If your drone is stolen from your property, you may be able to get it replaced under your homeowner’s insurance. You should check that your homeowner’s insurance coverage can cover your drone and the added risks involved with flying one. Also, if you want to keep your money safe while flying a drone, you should follow the advice of the III and get plenty of liability insurance.

What Does Drone Insurance Not Cover?

Drone insurance policies often have specific exclusions that limit the coverage. While these exclusions can vary based on the insurance provider and policy terms, common items not covered by drone insurance include:

Illegal Activities: Any activities conducted with the drone that violate laws or regulations, such as unauthorized surveillance or flying in restricted airspace, are typically not covered.
Intentional Damage: Deliberate actions that cause damage to the drone or other people’s property are not covered. Insurance is designed to protect against accidents, not intentional harm.
Wear and Tear: Normal wear and tear, gradual deterioration, or mechanical breakdown of the drone are usually not covered. Insurance is for sudden and unexpected events, not for maintenance issues.
Losses Outside Policy Territory: If the drone operates outside the geographical area specified in the policy, damages or losses that occur in these regions might not be covered.
War or terrorism: Damages resulting from acts of war, terrorism, or related activities are typically not covered.
Failure to Follow Regulations: If the drone operator fails to follow the regulations and requirements outlined in the policy, coverage might be denied. This could include not obtaining the necessary licenses or certifications.
Racing or Extreme Sports: If the drone is used for racing or extreme sports, these activities might not be covered under a standard policy due to the higher risks involved.

Also, it’s crucial for drone operators to thoroughly read and understand the insurance terms, including the exclusions, to ensure they are aware of the limitations of their coverage. If there are specific activities or risks that you want to cover, discussing them with the insurance provider and exploring customized insurance options is advisable.

Why Are Drones Hard to Insure?

Insuring drones can be challenging due to several factors that make them unique risks for insurance companies. One primary reason is the rapid growth and evolution of drone technology. As drones become more advanced, their capabilities increase, leading to a wider range of uses and potential risks. Insurance policies must adapt to keep up with these changes, which can be complex and time-consuming for insurance providers.

Another challenge stems from the diversity of drone applications. Drones are used in various industries, including photography, agriculture, construction, and delivery services. Each application comes with its own set of risks and requirements, making it difficult to create standardized insurance policies that cover all scenarios adequately.

Additionally, the regulatory environment surrounding drones is continually evolving. Different countries and regions have varying rules and restrictions regarding drone operations. Insurance providers must navigate these regulations to offer policies that comply with local laws, adding complexity to the insurance process.

Furthermore, assessing the risk associated with drones can be intricate. Factors such as pilot experience, the environment in which the drone operates, and the potential impact of a drone-related incident are all crucial considerations. Evaluating these variables accurately requires in-depth expertise and data analysis, making the insurance underwriting process challenging.

Due to these complexities, insurance companies often invest significant resources in research and development to create comprehensive and adaptable drone insurance policies, ensuring they adequately cover the diverse and evolving risks associated with drone technology.

Drone Insurance Cost

Drone insurance premiums fluctuate with factors such as drone replacement cost, desired level of coverage for liability, and length of policy.

Having continuous protection is a good idea if you fly your drone frequently. In this example, a yearly policy may cost you anywhere from $500 to $750, or $42 to $63 each month.

However, you also have the choice of covering on an hourly, daily, or monthly basis. Drone insurance coverage for the hour can start as low as $5, coverage by the day between $30 and $40, and coverage by the month anywhere from $60 to $100.

There are a wide range of businesses that provide drone insurance, including but not limited to:

Thimble.
BWI Fly.
Avion Drone Insurance
United States Aircraft Insurance Group.
Droneinsurance.com.
SkyWatch.AI.

Compare policies and premiums from several providers to discover the best drone insurance at the lowest possible cost. Consider the cost of premiums in light of the policy’s other terms, such as the types of coverage it offers, its limitations and deductibles, and whether or not it is better suited for personal or professional use.

In addition, Musson recommends looking into the policy’s exclusions before buying it. “Make sure you don’t need coverage for anything that’s excluded,” she warns. When deciding whether to do business with a company, check their customer service reputation.

Factors to Consider Before Purchasing Drone Insurance

Here are some of the factors to consider before purchasing drone insurance:

#1. Coverage

Some companies simply provide liability insurance in case their drone causes physical harm to a third party. Therefore, it may be preferable to go with an insurer that provides both liability and hull coverage (physical damage to your drone). Equipment, remote controls, etc., may also be eligible for supplemental insurance.

#2. Plans

This is something else to think about while picking up drone insurance. A costly annual package is not the best choice for hobbyist drone pilots. Therefore, you should consider hourly, monthly, and annual plans, and in some cases, even tailor-made plans.

#3. Type of Drone

What kind of drone insurance you need is very dependent on the specifics of your drone and mission. Liability and hull insurance premiums may need to be high if a medium-sized drone (about 2 kg) is to be flown in densely populated areas or near numerous structures. Recreational drone insurance with only hull coverage may be adequate for an FPV pilot operating in a safe and enclosed area. Therefore, it is necessary to evaluate the function of the drone and the type of drone you intend to purchase.

#4. Coverage Cost

This is a crucial detail to keep an eye on. The greater the drone’s mass, the greater the potential danger it poses to people and property below. Therefore, it is important to select a drone insurance company with substantial liability coverage to lessen the financial burden in the event of an accident.

Best Drone Insurance Companies

Drones have gained in popularity for a variety of reasons, not just in the business world. As of January 2023, over 871,000 drones were registered in the United States, with the vast majority (over 530,000) being used for recreational reasons, according to the Federal Aviation Administration. In all honesty, this number does not account for every drone in American airspace.

Miniature drones sold on sites like Amazon.com typically go undetected because the FAA only mandates registration for drones weighing more than 0.55 pounds and less than 55 pounds. Drones that weigh more than that are required by law to be registered with the FAA.

Insuring your drone is a good idea, regardless of the reason you have one or the model you fly. The homeowner’s insurance may cover damage claims when flying a drone for personal use. In addition, if you insure your drone under your homeowner’s policy, you’ll have to pay your deductible, which could be prohibitive in the event of a claim.

Due to these risks, it is recommended that drone owners invest in drone liability insurance in case their aircraft causes physical harm to a third party. Hull coverage, which protects against physical damage to your drone, is an option, as is supplemental coverage for things like accessories and remote controllers.

We examined the market’s leading drone insurance companies to identify those that provide the most comprehensive protection for both consumers and companies.

#1. Skywatch Drone Insurance

Our top selection for adaptability is SkyWatch.AI, because you may buy a yearly plan, a monthly plan, or even an hourly plan for your drone.

Plan options from this provider are versatile enough to appeal to both frequent drone pilots and casual hobbyists. SkyWatch.AI was established in 2016, and it has received funding from notable investors like F2 Capital, Kaedan Capital, and Verizon Ventures. Starr Insurance has an A rating for financial stability from AM Best and is the insurer for all of your drones.

Furthermore, it offers drone insurance on a yearly, monthly, or even per-hour basis. Liability insurance policies can be bought in limits ranging from $500,000 to $10,000,000, and they can be tailored to the buyer’s specific requirements.

Hourly plans only cover the specific destination you include at the time of purchase, while monthly and yearly plans cover the entire country. You should also know that SkyWatch.AI has a mobile app that can be found in the Google Play Store or the Apple App Store. You may use this app to check in on your coverage and even get drone insurance on the spot.

In addition, monthly plans start at $42. Annual plans are also available, starting at $499.

#2. DroneInsurance.com

DroneInsurance.com’s coverage is worldwide, with the exception of countries with strict prohibitions against drone use.

Due to the fact that your policy may follow you virtually everywhere you take your drone, DroneInsurance.com was our top pick for international coverage. REIN is an insurtech platform that powers DroneInsurance.com and offers on-demand coverage options. Also, the company has wisely teamed with professional insurance companies such as Liberty Mutual and Kiplin Capital despite their relative youth (it was launched in 2015).

You can either sign up for a yearly plan that will cover your drone flights whenever you choose, or you can buy daily coverage whenever you need it.

Basic coverages, including third-party physical injury, property damage, and personal and advertising injury, are included in both the annual and daily policies for drone insurance. It is important to remember that regardless of the plan you select, you can purchase additional protection against physical damage to your drone at all times, regardless of whether it is in flight or not.

In addition, base insurance for a single drone begins at roughly $84 per month, and flying liability coverage begins at around $30 per day; however, these costs can vary greatly depending on the type of drone you have and the coverage you select.

#3. Avion

As a company that focuses on commercial plans, including those that extend to aerial photography (an integral part of many weddings and other events), Avion Drone Insurance was our top pick.

When considering the economic value of the products they provide, including coverage for aerial photography and accompanying equipment, Avion Insurance comes out on top. Avion Insurance has come a long way since its foundation in 1985, and it is now one of the leading providers of insurance for drones used in business or for fun. Two of the major insurance companies in the world, AIG and Allianz, back its products.

Insurance for your drone can be customized to fit your specific needs, with options including hull coverage, coverage for commercial use and aerial photography, liability protection, coverage for the cameras and other equipment installed on the drone, and coverage for damage to the drone itself.

Despite this, Avion does provide nationwide coverage. Avion’s website features an online quote tool where you can enter your desired coverage details and receive an estimate of the associated cost.

#4. BWI Fly

Since BWI Fly’s drone insurance policies include full liability coverage with limits ranging from $500,000 to $25 million, we ranked them as the best option for those looking for the highest possible coverage limits.

Since you can buy coverage levels as high as $25 million, BWI Fly Drone Insurance is the best option. Once a year, BWI Fly, a company that has been around since 1977, offers drone insurance packages backed by A+-rated insurers in the aviation sector.

Since drones come in a wide variety of forms and serve numerous functions, regulatory flexibility is crucial.

Current limits for physical damage can range from $800 to $500,000, and you can get full coverage that will pay for physical damage to your drone along with its equipment. BWI Fly offers a wide variety of optional insurance policies, including coverage for physical injury, property damage, and advertising liability.

BWI Fly provides a toll-free hotline and customer service representatives are available for 12 hours each weekday, in addition to the web form, if you have any questions about drone insurance. Drone insurance costs with nationwide coverage start at around $475 per year. Your policy will go into effect as soon as we receive payment.

#5. Thimble

Thimble provides the option to buy drone insurance for a single flight or for multiple flights throughout the year. Quickly verifying coverage is helpful for hobbyists who make spur-of-the-moment decisions to fly their drones. Because of this, we recommend Thimble as the top hobbyist drone insurance company.

This company caters to amateurs and individuals who may only fly a drone once or twice in their lifetime by offering single-event insurance policies. Thimble is a newer insurance company that was first established in 2016 under the name “Verifly” before rebranding as “Thimble” in 2019. Despite the fact that this company hasn’t been around for very long, Global Aerospace, Inc. and numerous A-rated insurance companies support all of its drone insurance policies. The Munich Re Group, which underwrites more than half of AM Best’s policies, has an A+ rating for financial strength.

Thimble’s mobile app makes it easy to purchase drone insurance on-demand, making it a great choice for infrequent pilots. This company is ideal for those who need to get drone insurance at the last minute because they can get instantaneous verification of coverage through their mobile app.

Coverage limits of up to $10 million are available, and plans can be valid wherever drone use is legal. You may get a quote for drone insurance from them online without even providing the serial number of your drone. According to the quote tool, the minimum premium for drone insurance is $41.60 per month; however, this amount can go up or down based on the level of responsibility and selected coverage options.

Thimble offers the standard fare of insurance policies, including personal injury protection, property damage protection, legal defense, and medical payments. Errors and omissions insurance is a feature of several policies.

#6. AIG

American International Group (AIG) is renowned as one of the leading insurance companies offering comprehensive drone insurance solutions. AIG provides tailored coverage options for both recreational and commercial drone operators, addressing a wide array of risks associated with drone operations. Their plans often cover drone and payload equipment damage and liability for operators.

What sets AIG apart is its commitment to innovation and understanding the evolving needs of the drone industry. Using modern technologies and data analytics, they accurately identify risks and update their policies as drone technologies and applications change. AIG’s experienced underwriters work closely with clients to customize insurance plans, considering factors such as the purpose of drone use, industry-specific risks, and regulatory requirements.

With a global presence and a reputation for financial stability, AIG offers reliable coverage, making it a top choice for individuals and businesses seeking robust drone insurance protection.

#7. USAIG

USAIG (United States Aircraft Insurance Group) is widely recognized as one of the premier drone insurance companies, specializing in aviation-related coverage since 1928. With a strong focus on the aviation industry, USAIG offers tailored drone insurance solutions for both commercial and recreational operators.

USAIG stands out due to its deep expertise in aviation risk management. They cover liabilities, physically damaged drones and equipment, payloads, and non-owned drones. Their insurance plans are tailor-made to fit the requirements of specific sectors, offering peace of mind to companies and individuals that operate drones.

What distinguishes USAIG is its commitment to exceptional customer service and industry knowledge. Their team of experts understands the complexities of aviation regulations and stays updated with the latest developments in drone technology. Drone operators looking for trustworthy and tailored insurance can trust USAIG due to their expertise in providing bespoke insurance solutions.

Do I Need Insurance for My Drone?

The use of a drone, whether for work or play, does not necessitate insurance coverage. However, the best drone insurance policy is a must if you plan to use your drone professionally.

It is not enough to rely exclusively on your company’s insurance coverage. That’s because most basic liability insurance policies won’t cover damage to an airplane. If your drone accidentally damages property or injures someone at work, you’re accountable for repairs, medical fees, and legal action.

Some customers may insist that you obtain drone insurance if you utilize one in your business. According to BWI Aviation Insurance Agency owner Matt White, drone insurance is a requirement for some companies.

“Most job sites and companies will require at least $1 million in drone insurance before you get the job,” adds White. These sums can go as high as $80,000,000, but more frequently range from $1,000,000 to $5,000,000.

Is It Worth Getting Drone Insurance?: Bottom Line

Yes, getting drone insurance is worth it for most operators. It provides crucial protection against liability claims, potential legal expenses, and damage to expensive equipment. Even recreational users can benefit, as accidents or malfunctions can happen unexpectedly. Drone insurance offers peace of mind, allowing you to enjoy flying without worrying about significant financial losses. For commercial operators, it’s often a necessity, to open up business opportunities and ensure clients’ trust. Considering the potential risks involved in drone operations, having insurance is a prudent and valuable investment.

Frequently Asked Questions

Does Geico offer drone insurance?

Yes, drone insurance is available from companies like Geico and State Farm, though these policies are often aimed at hobbyists. Skywatch drone insurance is only one example of a special company that offers this type of protection for drone pilots.

How much is drone insurance at State Farm?

The cost of your drone is a major factor. According to the data provided by drone pilots, insurance costs about $2.75 for every $100 of coverage, with some policies requiring a $60 minimum.