Drone Insurance Guide & Picking a Policy

If you’re a commercial drone operator—or simply serious about using UAVs (Unmanned Aircraft Systems)—drone insurance isn’t optional.

With nearly a million drones registered in the U.S. for both personal and commercial use, drone insurance has become a key component of risk management, loss control, and legal compliance for operators and production companies alike.

With so many drones in the sky, it’s worth asking: Do you really need drone insurance? In most cases, the answer is yes—but understanding what kind and how much depends on your specific operations. Let’s take a closer look.

What is personal drone insurance?

Just like most forms of coverage, there’s no single catchall drone insurance policy. The type of insurance you need depends on how you use your drone—typically falling into one of two categories: personal or commercial.

Personal drone insurance provides protection for recreational users—those who fly drones for fun or creative hobby projects rather than professional purposes.

Even if you’re flying casually around your neighborhood, accidents can happen. A collision with a tree, a parked car, or even a neighbor’s property can lead to expensive repairs or liability claims. Having personal drone insurance ensures you’re protected from the financial fallout of those mishaps.

You might wonder if your homeowner’s insurance already covers your drone. In some limited cases, it can—typically for incidents like theft if the drone is stolen from your home. However, homeowner’s policies rarely cover drone-related accidents or damage that occur outside your property.

That’s where personal drone insurance comes in. It generally includes:

• Liability coverage for property damage or injury caused by your drone
• Physical damage coverage for repair or replacement of the drone itself

In short, homeowner’s insurance might protect your drone while it’s sitting on a shelf, but dedicated drone insurance protects it when it’s in the air.

What is commercial drone insurance?

While personal drone insurance protects hobbyists, commercial drone insurance is essential for professionals using drones in business or production settings.

If you operate drones for filmmaking, real estate, mapping, live events, or inspections, you’ll need dedicated commercial coverage. Many studios, production companies, and filming locations now require proof of drone liability insurance before granting access to shoot.

Commercial drone policies typically include:

• Higher liability limits to cover potential property damage or injury
• Optional hull coverage (also known as physical damage protection) for repairs or replacement of the drone itself
• Coverage extensions for specialized uses, such as aerial photography or filming over crowds

Just as businesses carry commercial auto or general liability insurance, production companies should carry commercial drone insurance for any aerial work done on behalf of the company. It not only satisfies contractual requirements but also protects your production from financial loss if an incident occurs during a shoot.

Types of drone insurance coverage

Commercial drone policies can include several types of coverage, each designed to protect you from specific risks associated with drone operations.

• Drone liability insurance – Protects against third-party claims for property damage, bodily injury, or invasion of privacy resulting from drone operations. Many studios, clients, and venues require at least $1 million in liability coverage for commercial UAV use.
• Drone hull insurance – Covers the cost of repairing or replacing your drone if it’s damaged, crashes, or is stolen. Some policies also extend coverage to attached payloads, though exclusions can apply—so check your policy carefully.
• Payload insurance – Provides protection for specialized gear mounted on your UAV, such as cameras, sensors, or other valuable equipment. This is often optional and may need to be added separately.
• Non-owned drone insurance – Ideal for productions that hire freelance drone operators or rent UAVs. It covers liability exposure even if your company doesn’t own the drone being used.
• Personal injury coverage – Protects against claims of invasion of privacy, libel, or slander that might arise from drone activities—especially important for aerial filming near private property.
• Business interruption insurance – For companies that rely on drones for ongoing operations, this coverage can help offset financial losses if flights are grounded due to damage, theft, or other disruptions.

Each policy can be tailored to fit your production’s specific needs. Discuss your use cases with an experienced broker to ensure you’re covered for every flight scenario.

Key exclusions to note

Every drone insurance policy includes exclusions—specific situations or losses that aren’t covered. Understanding these is just as important as knowing what your policy does protect.

Common exclusions include:

• Employee injury – Typically covered under workers’ compensation, not drone insurance
• General wear and tear – Routine maintenance, mechanical fatigue, and gradual deterioration aren’t covered
• Electrical or mechanical failure – Malfunctions not caused by a crash or external event may be excluded
• Intentional or illegal activities – Any reckless, negligent, or unlawful use of a drone will void coverage

Before purchasing or renewing your policy, review the exclusions carefully with your broker. Clarify any gray areas—especially if your production involves high-risk environments, special equipment, or aerial stunts.

Do you legally need drone insurance?

In most cases, drone insurance isn’t legally required—whether for personal or commercial use. The FAA regulates how drones are flown, but it doesn’t mandate insurance coverage for operators.

That said, flying without insurance can be an expensive gamble. A single incident—such as a drone striking property, injuring a bystander, or crashing into expensive equipment—can leave you liable for thousands of dollars in repairs, replacements, or medical bills.

If you’re using drones for commercial purposes—especially on film sets, in public spaces, or on behalf of a production company—insurance isn’t just smart, it’s often required by clients, studios, or location owners before you can fly.

When might you not need coverage? If your drone is inexpensive and used exclusively on your own property, you may choose to go without. But for any professional or public use, drone operator insurance is a critical safeguard—and often a contractual necessity.

Choosing the right commercial drone insurance

By now, you know that commercial drone insurance typically includes liability and hull coverage—but the right policy depends on how you use your drone and what risks your production faces.

Here’s what to consider when selecting your coverage:

• Drone liability insurance – This is the coverage most productions need. It protects against third-party property damage or bodily injury and is often required by studios, clients, and filming locations.
• Drone hull insurance – Covers physical damage to your drone itself. For professional drones that can cost thousands of dollars, hull insurance is essential—it protects your investment just like your camera or lighting gear.
• Owned vs. non-owned drone coverage – Some insurers, including Wrapbook, offer policies that distinguish between owned drones (those your production company operates directly) and non-owned drones (those rented or provided by third-party operators). This ensures everyone working on your production is properly covered.
• Drone warranty coverage – Some rental houses or manufacturers (like DJI) offer separate warranty coverage. If you already have hull insurance, many of these protections may overlap—so always compare the terms of your policy before purchasing extra coverage.

When in doubt, review your coverage details with your insurance broker. They can clarify overlaps, help you avoid unnecessary add-ons, and ensure your production is fully compliant with vendor and location requirements.

What does drone insurance cost?

Drone insurance costs vary widely depending on how—and how often—you use your UAV. For commercial operators, premiums are influenced by several key factors:

• Type and value of the drone – Higher-end drones (like professional DJI models) generally cost more to insure due to their replacement value. However, brokers can often structure cost-effective policies even for high-value equipment.
• Coverage type and limits – Combining drone liability and drone hull insurance provides broader protection but also increases premiums. Productions with larger budgets or greater exposure often carry higher liability limits—sometimes $1 million or more.
• Coverage area – Where you operate matters. Policies can vary depending on your region, flight zones, or local regulations. Be upfront with your broker about your planned flight areas to ensure you’re fully protected.
• Duration of coverage – Annual policies cost more upfront but are more economical for frequent or year-round operators. Short-term (or on-demand) policies, on the other hand, cover single projects or specific dates and are ideal for one-off shoots, though they typically come with a higher per-day cost.
• Pilot experience and credentials – Operators with more flight hours, FAA Part 107 certification, or formal training may qualify for lower premiums. Less experienced pilots or those without records of training can expect higher rates.

In general, commercial drone insurance can start around $500 per year for basic coverage, but the exact amount depends on your equipment value, flight frequency, and liability limits.

As with any production-related insurance, discuss your usage and risk profile with a qualified broker. They can tailor your plan to balance cost efficiency and comprehensive coverage, ensuring your drone—and your production—stay protected.

What to consider when buying commercial drone insurance

You don’t need to be an insurance expert to get the right drone coverage—but it helps to come prepared. A bit of planning and the right broker can make all the difference in securing a policy that fits your production’s needs.

1. Know your details before you call. Gather key information—such as your drone’s value, how and where it will be used, and whether you need short-term or annual coverage. These details help your broker provide accurate recommendations and cost estimates.
2. Choose the right broker. A good broker should make the process easy to understand, not intimidating. If they dismiss your questions or can’t explain basic concepts like Drone Liability or Hull Insurance, it’s time to find someone who can.
3. Work with a broker who understands production. While traditional providers like Geico or State Farm offer basic drone insurance—often geared toward recreational users—film and commercial operators benefit most from brokers who specialize in the production space. This ensures your policy covers what actually happens on set, whether you’re using a DJI, a rental, or a custom rig.

At Wrapbook, our brokers specialize in production and understand how drones fit into your workflow. They’ll help you determine what kind of coverage you truly need—and make sure you’re not paying for what you don’t.

Wrapping up

So, do you need insurance for a drone? Yes—especially for any drone use tied to commercial or production work.

The right coverage protects your team, your gear, and your reputation when things don’t go as planned. Since every production’s needs are different, it’s best to work with a broker who understands the unique risks of film and commercial projects.

Reach out to Wrapbook’s insurance specialists for a personalized drone insurance quote or to discuss the coverage that fits your next project.