The FAA does not require drone insurance. But almost every commercial client does. If you want to get hired for real estate, construction, inspections, or any other paid drone work, you need proof of insurance before you show up on site.
This guide covers what drone insurance is, what it costs, what it covers, and when you should (and should not) carry it.
Types of Drone Insurance
There are two main types of drone insurance:
- Liability insurance. Covers damage or injury your drone causes to other people or property. If your drone hits a car, breaks a window, or injures someone, liability pays for the claim. This is what clients require.
- Hull insurance. Covers damage to your own drone. If you crash into a tree and destroy a $2,000 drone, hull insurance pays you. Most pilots skip this for consumer drones but carry it for expensive enterprise equipment.
What Does It Cost?
| Coverage Type | Annual Cost | Per-Flight Option |
|---|---|---|
| Liability ($1M coverage) | $500 – $1,500/year | $5 – $25/flight |
| Liability ($2M coverage) | $1,000 – $2,500/year | Varies |
| Hull (per drone) | $200 – $1,000/year | Rarely available per-flight |
If you fly a few times a month, per-flight insurance is cheaper. If you fly daily, an annual plan saves money. Most full-time commercial pilots carry an annual $1M liability policy.
Popular Drone Insurance Providers
- SkyWatch. One of the most popular per-flight and annual insurance providers. Plans start around $5 per flight or $600 per year.
- Verifly. App-based on-demand insurance. Good for pilots who fly occasionally and want pay-as-you-go pricing.
- BWI Fly. Traditional broker with customizable annual plans. Good for pilots with multiple drones or high-value equipment.
- Global Aerospace. Specializes in aviation insurance. Good for enterprise operators running large fleets.
Do Recreational Pilots Need Insurance?
No law requires recreational pilots to carry insurance. But if your drone hits someone or damages property, you are personally liable. A $500-per-year policy can save you from a $50,000 lawsuit.
Check your homeowner's insurance first. Some policies cover drone-related incidents. Most do not. Call your agent and ask specifically about UAS liability.
What Insurance Does NOT Cover
- Intentional damage or reckless flying
- Flying without a valid Part 107 certificate (commercial)
- Flying in restricted airspace without authorization
- War, terrorism, or nuclear incidents
Store your insurance certificates alongside your Part 107 and drone registrations in DroneLog107. Pull up proof of coverage from your phone in seconds. Start tracking free.
The Bottom Line
Drone insurance is not legally required, but it is practically mandatory for commercial work. A $1M liability policy costs $500 to $1,500 per year. Per-flight options exist for occasional pilots. Get coverage before your first paid job, not after your first claim.
For more on building a drone career, see our drone pilot jobs guide. Want to know the full cost of going commercial? Read our drone license cost breakdown.