Best Drone Insurance: Top 7 Companies, Coverage, And Cost

Best Drone Insurance: Top 7 Companies, Coverage, and Cost

Who doesn’t love drones? From the sets of your favorite Hollywood movie to your grandpa’s agricultural field, these flying cameras can be seen everywhere.

But piloting the same drones at altitudes up to 400-ft. (or higher) and speeds as fast as 100 m/h isn’t a joke! Even the most experienced hands can go wrong at times, causing damage to someone’s property or life.

That’s where drone insurance comes in the picture.

It protects you from hefty repair costs and medical bills, ensuring you don’t have to spend anything from your pocket. In some cases, you can even get your severely damaged drone replaced without any additional cost!

Through this guide, I’ll give you a complete picture of drone insurance, including its coverage types, costs, benefits, and top seven companies best suited as your insurer.

So, let’s get started without any further ado.

Why Do You Need Drone Insurance?

There are three main reasons why you need insurance for your drone, as discussed below:

Crash Protection

Drones are machines, so it’s not unusual for them to crash. Having drone insurance lets you recover the repair costs or replace your crashed drone without paying anything extra.

This is especially crucial today, as ideal flying conditions are becoming increasingly rare. Even a small gust of wind can send your drone spiraling toward the ground.

Peace of Mind

Investing in drone insurance also means investing in peace of mind. Knowing you’re covered for the associated risks of flying your travel-friendly drone, you can shift your focus to things that matter, like capturing aerial footage from high altitudes or participating in drone racing with your friends.

Liability Shield

Medical services are no longer affordable for everyone. If you can’t bear your own hospital bills, how would you pay for someone else’s?

That’s the reason why I feel the FAA must mandate drone insurance. It’ll take care of these unexpected expenses, freeing you from financial hardships in the future.

What Is Covered by Drone Insurance?

Drone insurance typically covers the following:

Liability Coverage

Liability coverage covers property damage and injuries your drone may accidentally cause others. Suppose your drone crashes into a parked car or accidentally hits a pedestrian during flight, liability coverage would pay for the repairs or medical bills.

This type of coverage is often required for commercial drone pilots in the U.S. and helps protect you from costly lawsuits, settlements, etc.

Hull Coverage

If you’ve any car insurance, you must already know what hull coverage is and what it covers.

Still, here’s a quick recap.

Hull coverage is similar to car insurance but for your drone. It covers the cost of repairing or replacing your UAV if it’s damaged or lost, ensuring you’re not left paying out of pocket for a new one.

Let me use the above example here as well for a better understanding. Suppose your drone accidentally crashes into a parked car or gets lost due to any XYZ reason, hull insurance will cover its repair or replacement costs based on the insured value of your drone.

Payload Insurance

This covers the equipment or cargo your drone is carrying. It’s a must-have for commercial operators using drones for tasks like aerial photography, mapping, delivery, surveying, etc.

For example, if your drone is carrying a photography camera, LiDAR laser, thermal camera, or any other piece of gear and it gets damaged during a flight, payload insurance would cover the cost of repairing or replacing the equipment.

Personal & Advertising Injury

Personal and advertising injury coverage protects you against claims related to defamation, privacy invasion, or copyright infringement caused by your drone operations.

If someone sues you because they believe your drone footage violated their privacy or misrepresented them in a way that harms their reputation, this coverage would help with legal fees and potential settlements.

Again, this personal and advertising injury coverage is particularly relevant for commercial pilots involved in media, marketing, or public relations work, where such claims are more likely to arise.

Medical Expense Coverage

Medical expense coverage pays for medical bills if someone is injured by your drone, regardless of who is at fault. This is important because even minor accidents can lead to costly medical treatments.

Let’s say your drone accidentally hits a bystander and they need medical attention, this coverage would help pay for their hospital bills, without needing to go through a lengthy legal process.

I highly recommend this medical expense coverage over anything else, since it provides quick financial assistance in case of accidents.

Certain Add-Ons

Certain drone insurance policies often offer add-ons to tailor coverage to your specific needs. These might include coverage for drone accessories, international flights, or even business interruption if your drone operations are temporarily halted.

If you frequently fly your drone overseas for commercial projects, an add-on for international coverage would protect your drone and equipment abroad.

These add-ons provide extra layers of protection, ensuring you’re fully covered no matter how or where you use your drone.

What Is “Not” Covered by Drone Insurance?

Drone insurance often put the following on the “exclusion” list:

Injuries to Employees

Drone insurance doesn’t cover injuries to your employees, unlike the workers compensation insurance.

Political or Terrorist Attacks

Activities involving political or terrorist attacks are usually excluded from drone insurance.

Reckless or Illegal Activity

Your insurer may also deny you coverage for reckless or illegal activities with your drone, like flying it without a valid license, invading someone’s privacy, etc.

Damage to Non-Drone Equipment

Damage to a non-drone equipment isn’t a part of the drone insurance policy.

Wars & Rebellion

Most insurance policies don’t cover claims caused by war, rebellion, insurrection, revolution, and martial law.

Incidents Involving Non-Registered Operators

If you’re a commercial pilot, you’re required to be licensed with the FAA. Incidents involving non-registered pilots get no help from the insurance company. Pilots who violate their state’s drone laws aren’t rescued by the insurance company either.

How Much Does Drone Insurance Cost?

The cost of drone insurance depends on several factors:

Accident History

If you’ve a long claim history, it’ll increase your drone insurance premiums.

Drone Type

It goes without saying, still, large, expensive drones are costly to insure compared to small, inexpensive ones.

Flying Location

You may find it strange, but it’s true. The location also influences your drone’s insurance premium. While it’s typically lower for sparsely populated areas, be ready to spend a few times more if the flying location is a densely-populated area, like a city.

Industry

If your drone is deployed for assistance during natural disasters or similar events, even the most basic insurance will cost you more.

Training

Non-trained or unregistered drone operators generally pay more premium compared to those with valid training. This is because non-trained pilots are more prone to commit mistakes while flying compared to those equipped with rigorous training.

Top 7 Drone Insurance Companies in 2025

According to my research, I came up with the following as the top drone insurance companies in 2025.

United States Aircraft Insurance Group (USAIG)

Overview

Website: www.usau.com
Founded In: 1928
Founders: Reed McKinley Chambers and David C. Beebe
Coverage Available: Unmanned aircraft systems, payload or cameras, sensors, ground equipment, spare parts, etc.

The United States Aircraft Insurance Group (USAIG) entered the aviation insurance space in 1928. Two WWI veterans, Reed McKinley Chambers and pilot David C. Beebe, founded the company after their first airline company, Florida Airways, went bankrupt after losing four airplanes to storms and an accident in 1926.

Having completed over 90 years (precisely, 96 years) in the industry, USAIG takes pride in its insuring historic events such as the first B-52 bomber flight, the 1969 lunar module flight, the Boeing 707 prototype, and the Boeing 747’s first commercial flight, and more.

Apart from aviation insurance, the US-based company also participates in promoting flight safety through its series of Safety First posters every year.

One thing I liked the most about USAIG is its extensive coverage for UAVs deployed for commercial duties, including war liability, terrorism risk insurance, costly ground equipment, spare parts, heavy cameras, and other drone-related gears.

And guess what? These policies are fully customizable and unwritten by a pool of insurers rated in the range from A to A++ from AM Best.

USAIG may lack a mobile app, but their user-friendly website is more than enough to get a free quote, in my experience. You’ll then be directed to an agent to collect relevant information about your company, the specific types of coverage you need, and the drones you want to insure.

SkyWatch.AI

Overview

Website: www.skywatch.ai
Founded In: 2016
Founders: Tomer Kashi and Ori Blumenthal
Coverage Available: Third-party aviation liability, bodily injury, property damage, privacy claims, etc.

Founded in 2016, SkyWatch.AI is your go-to insurance company if you’re looking for flexibility in the duration of coverage plans.

It allows you to buy an hourly plan, a monthly plan, or an annual plan—based on your requirements. This makes VOOM-powered SkyWatch.AI an ideal deal for frequent fliers or occasional hobbyists, who may disagree paying for a fixed plan.

The company, backed by major investors such as F2 Capital, Kaedan Capital, and Verizon Ventures, has all its policies underwritten by Starr Insurance, with an A rating for financial strength from AM Best, just like the USAIG.

SkyWatch.AI may be just 8-years- old, but it seems to be on track to fulfill the founders’ mission of empowering drone operators to fly safely and manage their flights seamlessly by providing reasonable insurance coverage.

If I talk about the liability coverage amount, it starts from $500,000 and goes up to $10 million. Again, you can modify your policy as per your needs. This makes SkyWatch.AI my best drone insurance for aerial photography.

SkyWatch.AI also has an intuitive mobile application that’s available on both Google Play Store and Apple Store. Download it on your device and monitor your policies or buy new policies on the go!

Note: SkyWatch.AI acquired DroneInsurance.com in 2023.

Avion Drone Insurance

Overview

Website: www.avioninsurance.com
Founded In: 1985
Founders: Scott Langevin
Coverage Available: Coverage for commercial purposes, aerial photography, liability coverage, onboard cameras, onboard components, etc.

Florida-based Avion Drone Insurance offers comprehensive UAV liability policies for commercial and recreational use at the most competitive prices—next to none.

Their team is pretty experienced in minimizing your premiums while mitigating your risk in case you lose your drone. Nevertheless, while the policies offered by the company are underwritten by highly rated insurance providers such as AIG and Allianz, it doesn’t let you generate a free quote without a valid drone serial number.

Customizable coverage is an option here, as well. You can select the best drone insurance that includes hull coverage, liability coverage, payload insurance for onboard cameras, and other drone equipment, provided they were attached to your drone at the time of the stated accident.

Avion Drone Insurance caters to all commonly available drones; however, I recommend contacting their support team if you’ve any questions regarding coverage types or limits.

BWI Fly

Overview

Website: www.bwifly.com
Founded In: 1977
Founders: Bill White
Coverage Available: Liability coverage, physical damage, onboard equipment, payload, etc.

BWI Fly aptly justifies its tagline “The Future of Aviation Insurance.” Founded in 1977, the company is known for its high coverage limit amounts, which range from $500,000 all the way to $25,000,000. Its closest competitor on my list is SkyWatch.AI with an upper limit of $10M.

Such a massive range in capacity gives you the confidence to bid on larger and higher paying drone jobs.

BWI Fly offers full-coverage, annual drone insurance policies, underwritten by A+ rated aviation insurance companies, with both liability coverage and physical damage to protect your UAS.

In addition, you can opt for advertising liability coverage, property damage, bodily insurance, and more by paying more premium.

AirModo

Overview

Website: www.airmodo.com
Founded In: 2017
Founders: NA
Coverage Available: Recreational coverage, commercial coverage, etc.

AirModo’s flexible and affordable coverage for drone operators is a blessing for both hobbyists and professionals in protecting their drone investment.

You can get coverage for not only your drone, but its various accessories, too, and even liability in case of accidents or damage.

One of the best features of AirModo is its on-demand insurance. I’ve not come across this feature elsewhere. This means you can activate coverage whenever you need it, whether it’s for a few hours, a day, or longer.

It’s a great way to save money, as you only pay for the insurance when you’re flying your drone.

AirModo is also easy to use. You can get a quote and purchase a policy online in just a few minutes. The company is known for its excellent customer service, making the whole process smooth and hassle-free.

With AirModo, you can fly with peace of mind, knowing that your drone is well-protected.

Bullock Agency, Inc.

Overview

Website: www.thebullockagency.com
Founded In: 1984
Founders: Heidi N. Bullock
Coverage Available: Physical damage, legal liability, etc.

Bullock Agency, Inc. is another trusted insurance company specializing in drone insurance. This company by Heidi N. Bullock understands that drones are valuable and can sometimes face risks like crashes, malfunctions, or unexpected events.

That’s why they offer a range of insurance options to keep your drone protected.

One of the key features of Bullock Agency’s drone insurance is its comprehensive coverage. They provide policies that cover damage to your drone, liability coverage if your drone causes harm to others or their property, and even protection against theft or loss.

This means that whether you’re using your drone for commercial purposes or just for fun, Bullock Agency has you covered.

Their policies are rated highly by well-known agencies, which means you can trust that you’re getting reliable and trustworthy coverage.

The company also offers customizable policies, so you can choose the level of coverage that best fits your needs, and of course, budget.

Additionally, Bullock Agency has excellent customer service. They are committed to helping their clients understand their options and choose the right policy.

Whether you’re a professional drone operator or a hobbyist, Bullock Agency, Inc. provides peace of mind knowing that your drone is well-protected.

With them, you can focus on flying, while they handle the risks.

Global Aerospace

Overview

Website: www.global-aero.com
Founded In: 2001
Founders: Chubb & Son and The Continental Corporation
Coverage Available: Damage to the drone, liability (personal or property), even invasion of privacy, etc.

Global Aerospace is one of the top-rated insurance companies for individuals and organizations across the aviation industry—including pilots, airlines, aviation manufacturers, and space agencies.

It checks all the boxes: flexible packages, broad coverage (even for non-owned drones), easy access to your Certificate of Insurance, and instant quote.

I read a few reviews of Global Aerospace online and was surprised to see such a good response from its clients. This London-headquartered company provides all-inclusive coverage for single drones or entire fleets with one policy.

Their insurance includes protection for third-party liability, damage to the drone, payload, ground equipment, medical expenses, and invasion of privacy risks!

Global Aerospace, in collaboration with SkyWatch.AI, also delivers on-demand drone insurance in the U.S. starting at just $10/hour.

How to Choose the Best Drone Insurance?

Choosing the best drone insurance can feel overwhelming and it surely is. However, focusing on a few key factors can make the process easier. Here’s what to look for if you’re just starting out:

Coverage Type

Firstly, you must identify the type of coverage you need. Drone insurance generally comes in two forms: liability insurance and hull insurance.

Liability insurance covers property damage or injuries that your drone could cause due to an accident. For example, if you’re flying your drone and it accidentally crashes into someone’s car, liability insurance would come into play in this case, covering the repair costs.

“Hull” insurance, on the other hand, covers damage to your drone itself, whether it’s from an accident, theft, or sometimes, loss. If you’re using your drone for commercial purposes, you may also need coverage for payloads or data.

Nowadays, I’ve also come across other fancy drone insurance coverage types, namely a separate payload insurance, ground equipment insurance, personal injury insurance, non-owned insurance, etc.

Policy Limit

For those who don’t know, the policy limit is the maximum amount the insurance company will pay out in the event of a claim. It’s important to choose a policy with a limit that covers your potential risks.

For instance, if you’re a professional videographer using expensive equipment, you’ll want a higher policy limit to ensure you’re fully covered. And vice-versa if you’re just a casual flier like me.

As far as I remember, a typical liability policy ranges from $500,000 to $10M (or even $25M), but if you’re flying in crowded areas or working with high-profile clients, you may need even more coverage.

Exclusions

This is very, very important. Pay close attention to what’s NOT covered by your policy, known as exclusions.

Common exclusions might include flying in restricted airspace, using your drone outside of the policy’s coverage limits, or flying without the necessary permits. If you take your drone into a no-fly zone and it crashes, your insurance might not cover the damages.

Understand these exclusions to avoid any surprises when filing a claim.

Premium Costs

The cost of drone insurance, or the premium, varies depending on factors like your drone’s value, your experience level, and how you use the drone.

I’m a hobbyist who enjoys flying my DJI Mini 4 Pro for fun. My dad, on the other hand, is a commercial pilot, and he pays a significantly higher premium for his drones, which he uses for professional purposes.

Be sure to compare different policies to find one that fits your budget without sacrificing necessary coverage.

Claim Process

Claim process is an equally interesting yet tedious aspect of any drone insurance.

Some insurers offer simple online claim forms and quick turnaround times, while others might have more complicated procedures.

It’s a good idea to read reviews or ask other drone operators about their experiences with the insurer’s claim process.

Reputation & Customer Support

The reputation of the insurance company is another important factor. Look for companies with strong customer support and positive reviews from fellow drone users.

Companies like SkyWatch.AI and BWI Fly are reliable, global insurance providers with reliable customer service and tailored policies for drone operators.

Best Drone Insurance: FAQs

Yes, some drone insurance policies cover lost drones, but it depends on the policy. I always check if “loss” is included when choosing coverage, so I’m protected in case my drone goes missing during a flight.

Absolutely! There’s no doubt about this. It’s completely worth it because it protects you from costly repairs or replacements. It also covers third-party damages, giving you peace of mind while flying.

To claim drone insurance, you must contact your insurer immediately after an incident, provide all necessary details asked, and submit any required documentation, like photos or a police report. They would guide you through the whole process.

Yes, if you’re flying a drone commercially, insurance is often required by law or clients. It covers potential liabilities and ensures you’re compliant with regulations.

In most cases, I haven’t heard of drones being covered by your standard home insurance policies. However, you can usually add coverage by purchasing a rider or endorsement for personal property.

It’s important to check with your insurer to understand the specifics of drone coverage, including liability and damage.

Conclusion

Drone insurance is more than just an extra expense—it’s a crucial step to protect your drone investment. Whether you’re flying for fun or work, the right insurance protects you from unexpected liabilities like accidents, damages, and losses.

To choose the best drone insurance, I highly recommend comparing different policies to find one that fits your needs. That way, you can fly with peace of mind, knowing you’re covered for any potential risks.

Have any question(s) regarding drone insurance? Let’s connect in the comments section for discussion.

Author

Diptesh Das

Diptesh Das is your friendly ‘content maniac’ and drone enthusiastic! Being passionate about content writing. He is a firm believer of the power of words and thereby ended up leveraging them to create an impact by sharing his drone knowledge and experiences.