What is drone insurance?
Drones are also known as Unmanned Aerial Vehicles (UAV). Drone insurance protects you from costly damage that your UAV may suffer or cause. It is a form of liability insurance with unique details specific to drone usage. In short, damages to your property, others’ property, and the drone itself are all covered with drone insurance. Different insurance providers offer different policies. Make sure you read the terms carefully before purchasing your insurance policy.
Who needs drone insurance?
Drone insurance can be practical for any drone owner. It is especially imperative if you use your drone for business. Here are some differences between recreational and commercial drone insurance.
Recreational drone insurance
Most general homeowners or renters insurance policies, cover your UAV. For this reason, it is not always necessary to get recreational drone insurance.
There are some cases in which homeowners insurance might not be enough. If your drone injures someone, homeowners or renters insurance may not cover medical bills. You should also know that you may have to pay your homeowners insurance deductible, which can be a lot.
If you are concerned about the possibility of your drone causing damage to property or bodily harm to you or others, consider looking into extra liability insurance. Drone insurance protects you in any event your general policy doesn’t cover. It’s better to be safe than sorry by purchasing drone insurance.
Commercial drone insurance
If you use the drone to make money, your drone falls into the commercial category. You are not required by law to get commercial drone insurance, but it is recommended. Commercial drone insurance protects your business from claims of injury or property damage caused by your drone.
As a commercial drone pilot, none of the liability covered by homeowners or renters insurance applies to your drone. If you fly your drone without drone insurance, you risk major losses for your business in the event of an accident. Commercial drone insurance is the most common type of drone insurance purchased, and for good reason.
The following industries most commonly require commercial drone insurance:
- Law enforcement
- Traffic reporting
- Real estate
- Photography and videography
- Engineering, surveying, and construction
- Agriculture
- Infrastructure maintenance
Commercial drone insurance providers will often require information to prove that you are a safe pilot including:
- Proof of UAV pilot training
- Maintenance logs
- Operating manuals
- Record of parts
- Remote ID
Having all these items in order will increase your chances of getting a good commercial drone insurance policy.
What does drone insurance cover and exclude?
It is important to understand your policy for drone insurance. Terms vary based on the insurance provider. Here are some coverages to look for in a drone insurance policy.
Liability insurance
Drone owners can buy liability insurance for their drones. Liability insurance covers any damage or bodily injury caused by the drone. This type of drone insurance may also cover potential lawsuit fees. Ultimately, liability insurance can be critical because it lessens the financial risk on drone operators and businesses.
Hull coverage
Hull coverage protects against any damage to the drone itself. As an addition to your hull insurance, you can include coverage of any other equipment related to your drone. Hull coverage is also sometimes called physical damage coverage. Read your hull coverage policy carefully to make sure it includes the accessories and customizations you need.
Theft coverage
Theft coverage covers the cost of replacing your drone in the event it is stolen. Having theft coverage can save your business time and money by quickly replacing your UAV.
What are the limits of drone insurance?
The standard drone insurance policy will cover from $1M and $5M. In special cases, limits can be up to $25M. Someone would rarely need coverage this high. The standard limits are enough for most cases.
How much does drone insurance cost?
Drone insurance payment plans can run hourly (per flight), monthly, or annually. The cost of your drone insurance relates directly to the amount it covers. Insurance that covers $2M in losses will be more expensive than one that covers $1M. It is up to you to choose your plan and payment schedule based on how often you fly and for what purposes.
Other factors will affect the cost of your drone insurance. Insurance companies will want to see logs of your flight time, proof of any drone pilot training, maintenance logs, proof of ownership, and more. Having all these items in place can result in a lower insurance premium. On average, drone insurance can cost from $500-$1000 per year.
How to choose the best drone insurance?
The best drone insurance for you is unique to your situation. Below are some tips to find the best drone insurance policy for you.
Understand what coverage you need
Define whether your drone is commercial or recreational. Think about what kind of activities you will use your drone for. Understanding these important factors will help you communicate to the insurance provider what you need covered. Depending on how you plan to use the drone, you should look for insurance that covers any specific uses.
Define your financial boundaries
You will want to understand your financial situation before entering into a drone insurance policy. While it is important that you cover your bases with drone insurance, you don’t want to break the bank doing so. There are ways to get a lower premium for your insurance policy. Show you show the insurance agency you are responsible, registered, and reliable. They will see you as low risk, and therefore offer lower rates.
Compare drone insurance providers
Don’t settle with the first quote you get. Shopping around for insurance policies will help you find the best drone insurance policy. Look for the best combination of terms you are looking for at a price you can afford. Features of drone insurance to look for include limits, premiums, deductibles, plan terms, reimbursement, and co-payments. As long as you can afford it, It is never a bad idea to be extra cautious and covered when insuring a drone.