Drone Insurance: Here’s Why You Need It

TLTR: This article gives you an insight into drone insurance and how beneficial it can be for drone owners.

Even if you are a skilled drone pilot, you could be flying during adverse weather, or the drone could malfunction while in the air. Hence, you need to be prepared to tackle the losses incurred. Commercial drone insurance covers your UAVs (Unmanned Aerial Vehicles), hence allowing you to rest easy. 

Drones face several risks when in use. These risks include:

• Third-party damages incurred due to at-fault collisions with someone’s property.
• Injury or death due to poor operation of the vehicle.
• Damages due to fire, theft, or vandalism.

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Who Needs This Coverage?

Businesses that use aerial vehicles as part of their business require the coverage. These businesses can include:

• Commercial photographers
• Videographers and filmmakers
• Emergency response and damage assessment
• Traffic monitoring and news reports
• Humanitarian aid and rescue teams
• Package delivery

According to the Federal Aviation Authority (FAA), as of April 2021, there are 873,265 drones registered within the United States. 365,870 out of those are registered as commercial drones, whereas 503,896 are registered as recreational drones.

Drones used for recreational purposes are not legally mandated to get insured. However, those drones will have to comply with the FAA‘s law on recreational UAV operations. Owners of such UAVs can opt for personal drone insurance.

Professional photographers and videographers who use drones also may obtain drone liability insurance and photography insurance.

Policy Options You Can Get 

The general policies that fall under commercial drone insurance include:

General Liability Insurance

General liability insurance is a typical coverage required for all businesses. It protects companies against third-party claims that arise due to business operations, processes, or accidents inside the premises.

Professional Liability Insurance

Professional liability insurance protects businesses against losses incurred due to employee negligence or errors during hours of operation. It spares you any lengthy and expensive lawsuits that might arise due to said reasons.

Professional liability insurance is especially necessary for flight schools and other institutions that use drones in their training curriculum. If your clients feel that you have provided substandard tutelage (which is subjective, but the courts have the final word), they are likely to sue you. That’s where the coverage comes in handy!

Various Types:

Three of the most common types are:

Drone Liability Insurance

Drone liability insurance protects you from third-party claims of property damage as well as personal injury. Whether your drone crashes into a window or accidentally hurts a bystander, drone liability insurance will have your back.

Hull Insurance

If your drone is damaged, then hull insurance will cover the cost of repairs and replacement. Certainly, keep an eye on the market value of the drones you buy. The higher the cost of the drone, the more hull coverage you will need.

Non-Owned UAV Insurance

If you rent your drones for work, then you need non-owned UAV insurance to cover any third-party injuries or damages done by the UAV.

How Much Does Commercial Drone Insurance Cost?

There are various factors that determine the cost:

• Flight hours and location
• Cost of the drone
• Flight experience of the drone pilot

While the coverage limits generally start around $500,000, the above factors can add to or subtract from your final quote.

Are purchasing a drone or already have one? Find an insurance agent near you to get full coverage!

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