Drone Insurance Guide [2025] Costs, Coverage & Best Providers

What would you do if your drone crashed into a parked car? Or worse, if it hit someone? Would you have the funds to cover the damages? Could your business survive a lawsuit? These are the tough questions every drone operator faces, and ignoring them could cost you big.

The reality is, that flying a drone is exciting, but it comes with risks. Without the right insurance, one accident could wipe out your entire business. That’s why I’ve created this drone insurance guide to help you understand your options and secure the coverage you need to fly confidently.

Imagine the peace of mind that comes with knowing your drone, business, and wallet are protected. Whether you’re a hobbyist or running a real estate drone business, the right insurance plan makes all the difference.

Let’s break down everything you need to know about drone insurance—costs, coverage, and the top providers—so you can make an informed decision today.

👉 Your Guide to Real Estate Drone Photography

👉 7 Best Drones for Real Estate Photography Business

What is Drone Insurance?

Drone insurance is a safety net for drone operators, covering the financial risks that come with flying. It protects you from liabilities like property damage, personal injury, and even accidents involving your equipment.

Whether you are flying for fun or running a business, having insurance gives you one less thing to worry about. Picture focusing entirely on your flight, knowing that if something unexpected happens, you are covered. It is the kind of reassurance every drone pilot needs.

Why Do You Need Drone Insurance?

Let me be real with you—flying drones is unpredictable. One moment you’re capturing the perfect shot, and the next, you’re facing a costly mistake. Without insurance, even a minor mishap can spiral into financial trouble. 

Here’s why it’s a must.

1. Your Financial Protection
Accidents happen, and when they do, the costs can pile up fast. Insurance steps in to handle these unexpected expenses, from repairing a damaged drone to paying for property repairs or medical bills. Without it, you could be facing thousands of dollars in out-of-pocket costs.

2. Client or Employer Requirements
If you’re flying for business, many clients or employers won’t even consider you without proof of insurance. It’s often a mandatory requirement for securing contracts or working on large projects. Having coverage shows you’re serious about your work and prepared for any risks that come with it.

3. Build Trust with Clients
Insurance isn’t just for protection—it’s a mark of professionalism. Clients are more likely to hire you if they know you’ve taken steps to minimize risks. It signals that you’re a reliable operator who prioritizes safety, which can set you apart from competitors.

4. Legal Necessity
In some regions, insurance isn’t optional—it’s required by law. For example, many countries mandate liability insurance for commercial drone pilots. Operating without it could lead to fines, penalties, or even revoked flight permissions. Having the right coverage ensures you stay compliant and avoid unnecessary legal trouble.

5. Secure Your Investment
Your drone isn’t just a tool; it’s your livelihood. Insurance protects the equipment you rely on to keep your business running. Whether it’s a crash, theft, or flyaway, the right policy ensures that a single incident doesn’t derail your work or your finances.

6 . Confidence to Operate
Let’s face it: flying drones comes with risks. Insurance gives you the freedom to focus on your work without the constant worry of “What if something goes wrong?” It lets you operate with confidence, knowing you’re prepared for the unexpected.

Types of Drone Insurance Coverage Available

If you’re like most drone operators, you’ve probably wondered, What happens if something goes wrong. 

The good news is, there’s a type of insurance for almost every situation. From protecting your drone after a crash to covering legal claims, here’s how the main types of drone insurance work.

1. Liability Insurance

Liability insurance is there to protect you when your drone causes damage or injury to others. 

For example, if your drone hits a car, injures someone, or damages property, liability coverage helps cover the costs of repairs, medical bills, or legal claims. It’s essential for anyone flying in public spaces or working commercially, where accidents can easily occur.

2. Hull Insurance

Hull insurance is all about protecting your drone itself. If your drone crashes into a tree, malfunctions mid-flight, or gets damaged during transport, this coverage helps pay for repairs or replacement. Some policies even include extras like theft, flyaways, or disappearances.

However, keep in mind that hull coverage typically doesn’t extend to attached equipment like cameras or sensors—that’s where payload insurance comes in.

3. Payload Insurance

If your drone carries extra equipment like a high-resolution camera, thermal sensor, or any other attachments, payload insurance ensures those tools are protected. For instance, if your camera gets damaged during a hard landing, this coverage steps in to repair or replace it.

It’s important to list all payload items on your policy, as they’re not automatically covered under hull insurance.

4. Non-Owned Insurance

If you’re flying a drone you don’t own—whether it’s rented, borrowed, or part of a shared fleet—non-owned coverage protects you from liability or repair costs.

For example, if you’re piloting a client’s drone and an accident occurs, this insurance helps cover damages. While not all providers offer this as a standalone policy, you can often add it to an existing plan.

5. On-Demand Insurance

For pilots who only fly occasionally, on-demand insurance is a flexible option. This coverage allows you to pay by the hour or per flight, which can be more cost-effective than an annual policy. 

If you’re hired for a one-day project, for instance, you can activate coverage just for that timeframe, saving you money in the long run.

6. Ground Equipment Insurance

This type of insurance covers the equipment you use on the ground to operate your drone. Think of items like extra controllers, base stations, or monitors. If these tools are damaged or stolen, ground equipment insurance ensures you’re not stuck replacing them out of pocket.

Some providers bundle this coverage with payload insurance under an “equipment insurance” category, so check your policy details.

What Does Drone Insurance Cost in 2025?

The cost of drone insurance in 2025 varies widely, influenced by factors such as the type of coverage, your drone’s specifications, and how you use it. 

For hobbyists, basic liability insurance can start around $60 – $100 per year, offering protection against third-party damages or injuries.

Commercial operators, facing higher risks, might pay between $500 and $1,000+ annually for liability coverage ranging from $500,000 to $1 million.

Hull insurance, which covers physical damage to your drone, typically costs about 8% to 12% of the drone’s value per year. For instance, insuring a drone worth $1,500 could cost between $120 and $180 annually.

On-demand insurance options are also available, with rates starting around $10 per hour, ideal for occasional flyers seeking flexibility.

Keep in mind, that these figures are averages. The actual premiums can vary based on factors like pilot experience, location, and specific coverage needs. It’s essential to assess your individual requirements and consult with insurance providers to obtain accurate quotes tailored to your situation.

7 Best Drone Insurance Providers in 2025

1. SkyWatch.AI

SkyWatch.AI is known for its flexible and customizable policies that cater to both hobbyists and professionals. You can choose liability limits, hull coverage, and even privacy invasion protection with just a few clicks online. Once you purchase a policy, your Certificate of Insurance (COI) is delivered instantly, letting you start flying without delays.

• Coverage Options: Liability, hull damage, third-party property damage, and privacy invasion protection.
• Pricing: Hourly plans start at $10/hour; monthly and annual plans vary depending on coverage levels.
• Why It Stands Out: SkyWatch boasts a 4.9-star rating, exceptional customer support, and quick policy issuance, making it a favorite among drone operators.

Skywatch.ai Rating and Customer Reviews

2. Avion Insurance

Avion Insurance brings decades of experience from the aviation insurance industry into the drone space. They offer highly customizable policies, ensuring your unique needs are met. Whether you need liability coverage or physical damage protection, Avion has you covered.

• Coverage Options: Liability, physical damage (hull), and tailored coverage for specific risks.
• Pricing: Starts around $500 annually for basic liability; custom quotes are provided for additional coverage.
• Why It Stands Out: Avion’s deep understanding of aviation risks and personalized approach make it a trusted partner for drone operators looking for tailored solutions.

Avion Insurance Rating and Customer Reviews

3. BWI | FLY UAS Insurance

With a legacy dating back to 1977, BWI Fly Insurance specializes in aviation insurance and has adapted seamlessly to the needs of drone pilots. They offer some of the highest liability limits available and even cover higher-risk operations like drone delivery.

• Coverage Options: Liability coverage up to $25 million, hull coverage, payload insurance, and coverage for high-risk operations.
• Pricing: Custom quotes are based on coverage type and limits, starting around $600 annually for basic policies.
• Why It Stands Out: BWI’s willingness to insure risky operations like drone delivery makes them a standout choice for commercial pilots pushing the boundaries.

BWI | Fly Insurance Ratings and Customer Reviews

4. DJI Drone Insurance

DJI, the leading drone manufacturer, offers a range of specialized insurance plans to protect their products and ensure pilots can fly with confidence. These plans are tailored for both recreational and professional users, covering accidental damage, water exposure, crashes, and more.

Whether you’re flying for fun or business, DJI’s care service plans provide flexibility, quick replacements, and peace of mind, keeping your equipment secure and operational.

• Coverage Options:
  • DJI Care Refresh: Covers accidental damage, including crashes and water exposure, with up to two replacements per year.
  • DJI Care Pro: Offers unlimited repairs within the coverage limit for high-end DJI equipment.
  • DJI Care Enterprise: Provides comprehensive coverage for enterprise drones, including shared fleet protection.
  • DJI Maintenance Program: Ensures drones stay in top condition with routine inspections, cleaning, and part replacements.

5. Global Aerospace Drone Insurance

Global Aerospace is a powerhouse in the drone insurance market, underwriting many policies for UAS pilots in the U.S. and globally. They offer direct policies as well, covering everything from liability to privacy invasion.

• Coverage Options: Liability, hull damage, non-owned drones, privacy invasion, and even medical expenses.
• Pricing: Policies start at $650 annually for basic coverage and scale based on additional protections.
• Why It Stands Out: Global Aerospace’s comprehensive policies cover recreational and commercial operators alike, with worldwide coverage included.

6. AirModo Drone Insurance

AirModo is a fresh contender in the drone insurance market, offering flexible and comprehensive coverage tailored to both recreational and commercial pilots. Their user-friendly platform makes it easy for operators to secure instant insurance, whether they fly occasionally or year-round. With competitive liability limits and customizable options, AirModo is ideal for beginner and professional drone pilots alike.

• Coverage Options: Liability coverage up to $2 million for recreational pilots and up to $25 million for commercial operators. Optional medical payments and flexible add-ons are available.
• Pricing: Hourly policies start affordably, with annual plans designed to fit a range of budgets and flying schedules.
• Why It Stands Out: AirModo’s instant coverage and flexibility make it a go-to choice for pilots who need affordable and adaptable insurance solutions. It’s especially helpful for new drone operators looking for reliable protection without the hassle of lengthy commitments.

👉 Get the AirModo App on the Google Play Store

👉 Download AirModo on the App Store

7. Coverdrone Insurance

Coverdrone is a trusted provider offering specialized drone insurance for pilots in the UK, EU, Canada, Australia, and New Zealand. Whether you’re a recreational flyer or a commercial operator, Coverdrone’s flexible policies are tailored to meet the needs of international drone pilots.

Its compliance with EU regulation EC785/2004 makes it a standout choice for drone professionals working in regulated environments.

Coverage Options

• In-Flight Protection: Comprehensive coverage while your drone is in operation.
• Aviation Liability: Protects against third-party property damage and personal injury claims.
• Data Protection and Privacy: Covers breaches of privacy or data protection laws.
• Worldwide Coverage: Policies are valid across multiple countries for international drone pilots.
• Additional Features: Includes options for ground equipment, payloads, and theft protection.

Coverdrone Pricing
Coverdrone offers flexible pricing based on drone value, usage type, and pilot experience. Policies are available for short-term, annual, or bespoke durations.

Why It Stands Out
Coverdrone excels in providing tailored solutions for international pilots. Its compliance with EU aviation standards and ability to offer coverage across multiple regions makes it ideal for operators outside the U.S. seeking reliable and comprehensive insurance.

This provider is perfect for drone operators working in highly regulated markets or pilots needing cross-border protection.

👉 Get Coverdrone Fly Safe App on the Google Play Store [Free]

👉 Get the Coverdrone Insurance App on the App Store [Free]

How to Choose the Right Drone Insurance For You

Choosing the right drone insurance isn’t just about finding the cheapest plan—it’s about making sure you’re covered for what really matters. Whether you’re flying for fun or running a business, here’s how to figure out what works best for you.

Step 1: Figure Out What You Need

Start by asking yourself: Why are you flying? If you’re a hobbyist, your risks might be lower, and liability coverage could be enough. But if you’re flying commercially, things like drone liability insurance, hull coverage, and even payload insurance become essential. 

Think about your drone’s value, too. Flying a $500 drone comes with less financial risk than operating a $5,000 setup with specialized cameras.

Also, consider how often you fly. If it’s just now and then, on-demand drone insurance or hourly coverage might save you money. But if you’re up in the air multiple times a week, an annual policy could cut down your costs. Commercial drone insurance in 2025 also varies depending on where and how you fly—urban areas and high-risk jobs may need more robust policies.

Step 2: Compare Coverage Options

Not all policies are created equal. You’ve got liability insurance for third-party damages, hull insurance for your drone itself, and even non-owned drone insurance if you’re using borrowed equipment. And don’t forget exclusions—some policies won’t cover add-ons like cameras or accidents caused by unlicensed pilots. Pay attention to the fine print.

While you’re at it, shop around. Get multiple quotes from drone insurance companies, whether it’s SkyWatch.AI, BWI, or another provider. Reviews can tell you a lot about an insurer, especially when it comes to filing drone insurance claims. The best drone insurance providers not only offer solid coverage but also have a reputation for being easy to work with when things go wrong.

Step 3: Double-check What’s NOT Covered

Even the best drone insurance has limits. Most policies won’t cover reckless flying or illegal operations. For example, if you’re flying without an FAA Part 107 certification for a commercial gig, don’t expect your insurer to back you up. 

Other common exclusions include wear and tear, employee injuries, or using your drone in restricted areas. If you’re planning something out of the ordinary—like drone delivery or flying abroad—make sure to confirm your policy covers it.

My Thoughts

If you are flying commercially, having insurance is not just a good idea, it is necessary. Clients expect you to be prepared, and many jobs require proof of coverage. Liability insurance is a basic must-have, and if you are working with expensive drones or equipment, adding hull and payload coverage makes sense. Without insurance, an accident could lead to huge financial or legal problems that are completely avoidable.

For hobbyists, insurance may not feel as critical, but it can still be helpful, especially for liability protection. Some pilots even use on-demand policies for occasional flights or non-owned drone insurance when borrowing equipment. Protecting your drone and your wallet is one of the smartest moves you can make, no matter how often you fly.

How to File a Drone Insurance Claim [Step-by-Step]

Experiencing a mishap with your drone can be stressful, but knowing how to file an insurance claim can ease the process. 

Here’s a step-by-step guide to help you navigate this situation.

Step 1. Immediate Incident Documentation

As soon as the incident occurs, document the scene thoroughly. Take clear photographs of any damage to your drone and any third-party property involved. If there are witnesses, note their contact information and gather their statements. This evidence will be crucial when filing your claim.

Step 2. Retrieve and Preserve Your Drone

Safely recover your drone and any detached parts from the accident site. Preserving the damaged equipment allows the insurance company to assess the extent of the damage accurately.

Step 3. Notify Your Insurance Provider Promptly

Contact your insurance company as soon as possible to report the incident. Many providers have dedicated claim portals or hotlines for this purpose. For example, SkyWatch.AI offers an online claim submission process that takes only a few minutes.

Step 4. Complete the Claim Form Accurately

Fill out the insurer’s claim form with detailed and accurate information about the incident. Include all relevant details, such as the date, time, location, and a comprehensive description of the event. Attach the photographs and witness statements you’ve gathered to support your claim.

Step 5. Submit Supporting Documentation

Along with the claim form, provide necessary documents like your drone’s purchase receipt, maintenance records, and any relevant flight logs. Having these documents readily available can expedite the claims process.

Step 6. Maintain Open Communication

Stay in regular contact with your insurance provider throughout the claims process. Promptly respond to any requests for additional information to avoid delays. Understanding the expected timeline for claim resolution can help manage your expectations during this period.

Common Exclusions in Drone Insurance Policies

It’s essential to be aware of what your drone insurance policy does not cover to avoid unexpected surprises. Common exclusions typically include:

• Illegal Operations – Flights conducted without proper authorization, such as operating in restricted airspace or flying beyond visual line of sight without a waiver, are generally not covered. Engaging in such activities can lead to denied claims.
• Intentional Damage – Any damage resulting from deliberate misuse or reckless behavior, like intentionally crashing your drone or performing hazardous maneuvers, is excluded from coverage. Insurance is designed to protect against unforeseen accidents, not intentional acts.
• Wear and Tear – Normal degradation over time, such as battery deterioration or motor wear, is considered standard wear and tear and is not covered by insurance policies. Regular maintenance is the owner’s responsibility to ensure the drone’s longevity. 

Tips to Save on Drone Insurance

Drone insurance doesn’t have to break the bank. With a few smart strategies, you can get the coverage you need while keeping costs down. 

Here are some tips to help you save:

1. Maintain a Clean Flight Record

Think of your flight record like your driving history. The fewer accidents and incidents you have, the more likely you are to qualify for discounts. Insurance providers reward safe operators because they represent a lower risk.

Avoid risky maneuvers, follow FAA regulations, and document your flights using reliable apps or flight logs. These steps not only improve your chances of savings but also demonstrate professionalism to clients.

2. Invest in Training and Certifications

Advanced training can do more than sharpen your flying skills—it can also lower your premiums. Some providers offer discounts to pilots who hold certifications like the FAA Part 107 or complete specialized drone training programs.

These credentials signal to insurers that you’re serious about safety and less likely to make costly mistakes. Consider programs that focus on commercial operations, risk management, or even specific industries like real estate or construction.

3. Bundle Policies

If you need multiple types of coverage—like liability, hull, and payload insurance—ask about bundling them into a single plan. Many providers offer discounts for combined coverage, which can save you money compared to purchasing each policy separately.

It’s also a great way to simplify your paperwork and avoid juggling multiple insurers. Some companies, like SkyWatch.AI, even allow you to customize your bundled policies to match your unique needs.

Wrapping Up

Drone insurance isn’t just a nice-to-have—it must protect your investment and ensure you can operate confidently. Whether you’re flying for fun or running a business, the right policy safeguards you against accidents, lawsuits, and unexpected costs.

By following these tips and understanding what each provider offers, you can find affordable drone insurance without sacrificing quality. Ready to make a choice? Explore the top providers mentioned earlier, compare their options, and secure your coverage today. The sky’s the limit—but your financial risks don’t have to be!

FAQ – Drone Insurance Guide – Costs, Coverage, and Providers

Is drone insurance mandatory for all operators?

While not universally required, drone insurance is essential for mitigating risks associated with drone operations. Some states mandate insurance for commercial pilots, and certain clients or venues may require proof of insurance. Even if not legally required, having insurance protects you from potential liabilities and financial losses.

Does my homeowner’s insurance cover my drone?

Homeowner’s insurance policies typically do not cover drones, especially when used for commercial purposes. It’s crucial to verify with your insurance provider and consider purchasing a separate drone insurance policy to ensure adequate coverage.

What factors influence the cost of drone insurance?

Several factors affect drone insurance premiums, including the type and value of the drone, the pilot’s experience and flying history, intended use (commercial or recreational), coverage limits, and the geographic area of operation. Understanding these factors can help you obtain a policy that fits your needs and budget.

Are there different types of drone insurance coverage available?

Yes, drone insurance typically includes:

• Liability Coverage: Protects against damages caused to third parties.
• Hull Coverage: This covers physical damage to your drone.
• Payload Coverage: Insures additional equipment like cameras or sensors.
• Non-Owned Coverage: For liabilities arising from operating drones you don’t own.

Selecting the appropriate coverage depends on your specific operations and risks.

How can I file a drone insurance claim effectively?

In the event of an incident, promptly notify your insurance provider and provide detailed information about the occurrence. Document the scene with photos or videos, gather witness statements if available, and complete any required claim forms accurately. Timely and thorough communication with your insurer facilitates a smoother claims process.