Whether you're a weekend warrior flying for fun or a Part 107 certified pilot running a commercial operation, drone insurance isn't optional anymore—it's essential. With drones becoming more powerful (and expensive), a single crash can cost you thousands. Here's everything you need to know about protecting yourself in 2025.
"I thought insurance was a waste of money until my Mavic 3 Pro flew into a tree and landed on someone's car. The $89/year policy saved me over $4,000 in damages. Don't learn this lesson the hard way."
— Real pilot experience from the DroneNomad communityDo You Really Need Drone Insurance?
The short answer: almost certainly yes. Here's why:
🎯 Recreational Pilots
- • Most homeowner's policies exclude drone damage
- • Liability claims from injured parties can exceed $100,000
- • Some flying locations require proof of insurance
- • Many drone clubs mandate coverage for membership
💼 Commercial Pilots
- • Most clients require proof of insurance before hiring
- • Part 107 waivers often mandate coverage
- • Property damage during jobs is your financial responsibility
- • Professional liability protects against contract disputes
⚠️ Common Misconception
Your homeowner's or renter's insurance probably doesn't cover drones. Most policies explicitly exclude "aircraft" and treat drones as uninsurable personal property. Even if your policy mentions drones, coverage is typically limited to damage to the drone—not liability for damage it causes. Always check with your provider and get drone-specific coverage.
Types of Drone Insurance Coverage
Understanding the different types of coverage helps you pick the right policy:
| Coverage Type | What It Covers | Who Needs It |
|---|---|---|
| Liability Insurance | Damage or injury you cause to others/property | Everyone |
| Hull Insurance | Physical damage to your drone (crash, theft, fire) | Owners of expensive drones ($500+) |
| Payload Coverage | Cameras, sensors, specialized equipment | Commercial operators with add-ons |
| Personal Injury | Invasion of privacy, defamation claims | Photographers, videographers |
| Non-Owned Coverage | Liability when flying borrowed/rented drones | Pilots who don't own their aircraft |
Best Drone Insurance Providers for 2025
After researching and testing multiple providers, here are our top recommendations:
SkyWatch.AI
The industry standard for on-demand drone insurance. SkyWatch offers unparalleled flexibility with hourly, monthly, and annual policies—perfect for pilots who don't fly every day. Their app makes getting coverage as easy as ordering a rideshare.
✓ Pros
- • On-demand coverage from $10/hour
- • Instant certificates of insurance
- • $1M liability standard, up to $10M available
- • Hull coverage for 350+ drone models
- • Flight logging builds "drone pilot score" for discounts
✗ Cons
- • Can get expensive for frequent flyers
- • Some exclusions for high-risk activities
- • Hull coverage has strict requirements
BWI Aviation Insurance
BWI (Beecher Carlson) has been insuring aircraft since 1977 and brings that expertise to drones. Their policies are robust, their claims process is smooth, and they understand commercial operations better than anyone. If you're running a serious business, BWI should be on your shortlist.
✓ Pros
- • Established aviation insurance expertise
- • Excellent fleet and enterprise coverage
- • Comprehensive commercial policies
- • Strong claims support with aviation background
- • Covers high-risk operations (BVLOS, night ops)
✗ Cons
- • No on-demand/hourly options
- • Quote process isn't instant
- • Higher minimum premiums
Thimble
Thimble offers simple, affordable small business insurance that includes drone coverage. While not drone-specific, their general liability policies work well for pilots who do occasional commercial work alongside other services. The pricing is transparent and the process is fast.
✓ Pros
- • Very affordable hourly rates ($5-15/hour)
- • Simple online application
- • Good for multi-service businesses
- • Instant COI generation
✗ Cons
- • Not drone-specific coverage
- • Hull insurance not available
- • May not satisfy all client requirements
Coverdrone
Originally a UK company, Coverdrone has expanded to the US and offers some of the most comprehensive hull coverage in the market. If protecting your expensive equipment is a priority, Coverdrone's policies are worth the premium.
✓ Pros
- • Excellent hull/equipment coverage
- • Worldwide coverage available
- • Covers flyaway and water damage
- • No excess on liability claims
- • Replacement value (not depreciated)
✗ Cons
- • Higher premiums than competitors
- • Annual policies only (no on-demand)
- • Requires detailed equipment declarations
The Hartford
The Hartford is one of America's largest insurers and offers comprehensive small business policies that include drone operations. Their bundled approach (general liability + professional liability + equipment) can be cost-effective for established drone businesses.
✓ Pros
- • Established, trusted insurer
- • Business package discounts
- • Excellent customer service
- • Workers' comp available for employees
✗ Cons
- • Not drone-specialist coverage
- • Longer application process
- • Annual policies only
Provider Comparison Table
| Provider | On-Demand | Hull Coverage | Min. Liability | Starting Price |
|---|---|---|---|---|
| SkyWatch.AI | ✓ Yes | ✓ Yes | $1M | $10/hr |
| BWI Aviation | ✗ No | ✓ Yes | $1M | ~$750/yr |
| Thimble | ✓ Yes | ✗ No | $1M | $5/hr |
| Coverdrone | ✗ No | ✓ Yes | $1M | ~$600/yr |
| The Hartford | ✗ No | ✓ Yes | $1M | Quote |
How Much Does Drone Insurance Cost?
Drone insurance costs vary widely based on several factors:
Factors that affect your premium:
- •Drone value: Hull coverage is typically 10-15% of equipment value annually
- •Experience level: Part 107 certification can reduce premiums by 15-25%
- •Flight history: Apps like SkyWatch reward safe flying with discounts
- •Type of work: Roof inspections cost more to insure than real estate photography
- •Location: Urban flying = higher risk = higher premiums
On-Demand vs. Annual Policies: Which Is Right for You?
📱 Choose On-Demand If:
- • You fly fewer than 30-40 times per year
- • Your jobs are sporadic or seasonal
- • You need different coverage limits per job
- • You're just starting your commercial journey
- • You want to try coverage before committing annually
📋 Choose Annual If:
- • You fly weekly or more frequently
- • You have consistent commercial work
- • You want hull coverage for your equipment
- • You prefer predictable monthly/yearly costs
- • You operate a fleet or have employees
💡 Pro Tip: The Break-Even Calculation
To determine if annual makes more sense, divide your annual premium by the hourly on-demand rate. For example: $600/year ÷ $15/hour = 40 hours. If you'll fly more than 40 hours annually, the annual policy is cheaper.
FAA Regulations & Insurance Requirements
Here's what the FAA actually requires (and doesn't) regarding insurance:
Federal Requirements
- •Recreational: The FAA does not require insurance for hobbyist flying
- •Part 107 Commercial: No federal insurance mandate, but state/local laws may apply
- •Part 107 Waivers: Some waivers (night flying, BVLOS) may require proof of insurance
- •Government Contracts: Federal/state contracts typically mandate $1M+ coverage
While the FAA doesn't require insurance, many clients, venues, and local jurisdictions do. It's quickly becoming a de facto requirement for any commercial work. For more on FAA regulations, see our complete FAA license guide.
Frequently Asked Questions
Does my car insurance cover drone damage?
No. Car insurance covers vehicles, not aircraft. If your drone damages a car, you need drone liability insurance to pay for repairs.
What happens if my drone flies away and is never found?
Hull coverage typically covers "flyaway" incidents where the drone is lost due to signal interference, compass errors, or software glitches. You'll need to document the incident and may need flight logs as proof.
Am I covered if I fly in a no-fly zone?
Usually no. Most policies exclude coverage when you're violating FAA regulations. Flying in restricted airspace without authorization typically voids your policy.
Does insurance cover privacy lawsuits?
Some policies include "personal injury" coverage for invasion of privacy claims. This is especially important for photographers and videographers. Check if it's included or available as an add-on.
Can I insure a custom-built FPV drone?
It depends on the provider. SkyWatch and some others cover custom builds, but you'll need to declare components and values accurately. Coverage may be harder to obtain and more expensive.
Our Recommendation
For most recreational and part-time commercial pilots: Start with SkyWatch.AI. Their on-demand model lets you pay only when you fly, and you can build a flight history that lowers your premiums over time. Once you're flying regularly (40+ hours/year), transition to an annual policy.
For serious commercial operators: Get quotes from both BWI Aviation and Coverdrone. BWI excels at fleet coverage and high-risk operations, while Coverdrone offers the best hull protection for expensive equipment.
On a tight budget? Thimble is a solid choice for basic liability coverage at rock-bottom prices—just know you won't have hull coverage if your drone crashes.
Whatever you choose, having some coverage is infinitely better than none. A single liability claim can cost more than a lifetime of premiums. Protect yourself, protect others, and fly with confidence.
Sarah Skywalker is a FAA Part 107 certified pilot and drone educator based in Austin, Texas. She has reviewed dozens of insurance policies and helped hundreds of pilots find the right coverage for their needs. Questions? Reach out on our contact page.