Drone

Drone Insurance in the USA

Drone insurance can help make your life a little easier. It’s like driving a car: you take on some risk every time you launch your drone into the sky.

Drone enthusiasts, have you ever wondered how to protect your investment in drones? Whether you’re a professional aerial photographer or a real estate agent capturing stunning property shots, or just a passionate hobbyist, having the right insurance for your drone is essential.

You’re capturing breathtaking aerial footage when suddenly, disaster strikes—your drone crashes into a passerby, causing injuries, property damage, and medical expenses. There are many risks involved in flying a drone. Injuries from aerial collisions are the biggest insurance risk.

This is where drone insurance comes into play. It’s a safety net that protects you and your business from potential risks.

Key Drone Insurance Questions in the USA

• Do you need liability insurance for drones in the USA?
• What is the difference between liability insurance and hull insurance?
• How much does drone insurance cost in the USA?

How to get insurance for your drone in the United States?

Let’s look at a few steps to understand drone insurance in the USA:

Step 1. What is drone insurance in America?

First, let’s clarify what drone insurance is. Drone insurance, also known as Unmanned Aerial System (UAS) insurance, combines liability and property insurance. It’s like a “two-in-one” insurance package. Liability insurance protects you from third-party bodily injury or property damage, while property insurance covers your drone and its accessories.

Step 2. Who needs drone insurance in the USA?

Who may need drone insurance? If you’re using a drone for commercial purposes, such as a real estate photographer, aerial photographer, or even working in a fire and rescue team, drone insurance is essential. Other professionals, such as engineers, construction firms, and emergency response teams, also fall into this category.

Step 3. Is it mandatory to insure your drone in the USA?

In the United States, it’s not a legal requirement, except in Minnesota. If you operate in Minnesota, you’ll need insurance coverage and a licensing fee. However, even if it’s not required by your state law, having the right insurance coverage can protect your business and provide peace of mind.

Step 4. Homeowners insurance, drones, and coverage types.

Before diving into drone insurance types, let’s review homeowners insurance. If you’re a recreational and personal user of drones, your homeowners insurance may provide some coverage for personal use. However, it’s important to note that commercial use is not covered under a homeowners policy. It doesn’t cover injury or property damage if you’re using it for business purposes. When using a drone for business, homeowners insurance likely won’t cover damages, so it’s recommended to consider specialized drone insurance for commercial use.

Step 5. Different types of drone insurance in the USA.

Drone insurance comes in various forms and sizes. It all depends on your personal situation, such as the type of work you do with your drone, its weight, the risk you’re willing to take, and many other factors that determine the best insurance type for you.
Liability insurance covers property damage, bodily injury, privacy claims, indoor operation, damage to the drone itself, and provides worldwide coverage. All of this costs approximately $70 to $100 per month.

Drone injuries are divided into two parts: one is liability insurance, and the other is drone hull insurance. Liability insurance covers damage caused by the drone. This includes property damage, drone injuries, third-party claims, etc.

Type 1. Liability Insurance — this includes drone liability insurance, which covers expenses related to third-party injuries or property damage caused by your drone. This is insurance for when something goes wrong during filming.

Type 2. Drone Hull Insurance — covers the drone itself. If you rent or borrow a drone, this insurance can protect you from physical damage to the UAS. It’s always better to be safe than sorry.

Type 3. Reputation Damage Insurance — it protects you from claims related to advertising harm, such as defamation or copyright infringement. It’s an additional level of protection for your business reputation, along with aviation product liability insurance.

Type 4. Insurance for Unforeseen Manufacturing Problems — this coverage is crucial if you’re a drone operator or manufacturer, as it protects you from liability in case of injury or damage caused by a defective or malfunctioning drone.

Type 5. Ground Equipment Coverage (Payload Insurance) — Imagine if your controller or laptop used to operate the drone from the ground is accidentally damaged or stolen. With ground equipment insurance, you can rest assured that the repair or replacement costs will be covered. Payload insurance covers ground-based equipment such as ground stations, laptops, tablets, and additional gear.

Step 6. Find the right drone insurance in the USA

Now that you’re familiar with the different types of drone insurance, it’s time to find the right coverage for your needs. Keep in mind that not every insurance company offers drone insurance, so it’s important to analyze the options and find a company specializing in this type of insurance, specifically designed for drone operators. They offer liability policies, comprehensive coverage, and other necessary protective measures.

When choosing an insurance company, ensure they require proof of the necessary training and UAS license. This is important for your safety and that of the company. Also, ensure you’re getting coverage from a recognized insurance company approved by the state insurance department.

Step 7. The cost of drone insurance in the USA

Prices vary depending on several factors:
– The type of drone you own (quadcopters and fixed-wing multicopters);
– The value of the UAS;
– The coverage options you choose;
– Commercial or recreational use, and even specific client requirements can affect the overall cost.

Currently, drone insurance costs range from $300 to $800 per year for one million in coverage. Some insurers offer on-demand drone coverage, which is suitable for occasional drone users. Insurance costs less if you rarely fly your drone. A good example could be an event photographer who typically uses their drone for only about an hour a month. If you fly your drone more often, hourly rates quickly become more expensive than a monthly or annual policy.

With comprehensive drone insurance in the USA, you’re ready for any unforeseen incidents that may occur during your aerial adventures.

The best way to decide what’s right for you is to get a quote for on-demand drone insurance and monthly coverage. If you fly enough hours, opting for monthly insurance or annual coverage is more cost-effective.

Drone Risks in the USA

There are many risks associated with flying drones. These can include aerial collisions, system failures, and even accidents. All of these risks relate to drone insurance in the USA. Drone injuries and aerial collisions are the biggest insurance risks associated with drones. Drone insurance in the USA covers these risks.
Drone damage is divided into two parts: liability insurance and hull insurance.
Liability insurance covers damage caused by the drone, such as property damage, third-party claims, and more. This is an important part of drone insurance in the USA.

Hull insurance covers your drone against physical damage, theft, robbery, fire, explosion, and other causes. These types of coverage are part of a comprehensive drone insurance package in the USA. You can obtain hull insurance through the manufacturer or through other drone insurance companies.

Features of Drone Insurance in the USA

There are two main ways to insure your drone: on-demand and monthly or annual coverage.
On-demand: usually set on an hourly basis. It’s important to remember that most on-demand policies only cover liability insurance, so if your drone crashes into a car causing $1,500 in damage, it will likely be covered minus a deductible. However, repair of your drone will not be covered.
On-demand insurance is becoming increasingly popular among drone pilots in the USA, especially those who don’t fly full-time. It can be more cost-effective and time-efficient. As drone pilots, we may not know how often we will work or only need specific insurance protection from job to job. It’s much easier to purchase on-demand drone insurance for a single operation than to work with a traditional insurance broker to secure a policy covering the entire year. It can also be more cost-effective if you’re not flying full-time.

Monthly and annual policies provide comprehensive coverage during the insurance period. The policy will cover you any time you fly. Usually, monthly rates are slightly higher than annual rates, as insurers typically offer a discount to annual policyholders.

To decide which drone insurance in the USA is right for you, get a quote for on-demand and monthly drone insurance. If you fly often enough, you’ll pay more for hourly on-demand insurance. In such cases, monthly insurance may be more beneficial.

Two types of drone insurance you may need for business in the USA:

1. Liability Insurance — This type of insurance coverage provides financial protection and coverage for individuals or businesses in the event they are held legally responsible for injuries, property damage, or other liabilities caused by their actions or negligence. Liability insurance protects you from third-party claims for property damage or injuries, such as a drone crashing into a building, car, or injuring someone. There are different levels of liability insurance, so be sure to check your policy terms.
Many clients will require

you to have liability insurance, and most will want you to have at least one million in liability coverage.
2. Comprehensive Insurance — another common form of drone insurance in the USA. Unlike liability insurance, which covers damage caused to third parties or their property, comprehensive insurance protects your drone in most cases. It covers damage or loss of your drone due to accidents, crashes, or other unforeseen events. Other types of insurance include theft or loss of your drone, bodily injury, and damage.

Benefits of Drone Insurance in the USA:

1. Peace of mind. Drone insurance in the USA gives you peace of mind, knowing you are financially protected in the event of accidents, crashes, or damage.
2. Professionalism. Having drone insurance in the USA can make your business more attractive to clients.
3. Risk management. Instead of bearing the full financial burden of a loss, you share it with the insurance company, which will cover the damage caused by your drone.

How to choose a drone insurance company in the USA?

The US insurance market offers a variety of drone insurance options:
For example, you can get UAS insurance through a smartphone app. Enter your drone information, and the app will give you the hourly rate based on the coverage. Insurance starts within an hour after you submit your application.

Some drone manufacturers offer insurance for their products upon sale. That means when you buy a drone, you receive hull coverage or coverage for loss during flight. It also covers the delivery of a new UAS.

Often, companies have an upper coverage limit, such as $1, $10, or $25 million.

Some insurance companies do not offer popular daily on-demand coverage but only monthly or annual coverage. Or, conversely, they don’t offer annual coverage.

Most insurance companies have a customer-friendly website where you can instantly get all the main information and submit an application for insurance.
There are companies that offer drone insurance with worldwide coverage.
They also offer additional coverage to protect your ground equipment.

There is insurance that provides special coverage for regional photography and business, as well as covering expensive costs—cameras and equipment attached to the drone.

There is an individual policy for a practical drone pilot training program in the USA that takes into account personal needs.

Remember, whether you’re a professional drone operator or an enthusiastic hobbyist, having the right insurance coverage is vital for protecting your business and valuable equipment.

How much does drone insurance cost in the USA?

You can choose a monthly plan that suits you best or purchase “on-demand” insurance for a specific flight. You open the app, select the flight location and radius, and the app will show you the exact insurance cost for the required period at the bottom of the screen.

Why is drone insurance important in the USA?

The key aspect is liability, which can arise if you crash into something or someone. This can lead to serious consequences. The last thing you want to worry about while operating a drone is financial risk.
Many people overlook the importance of drone insurance in the USA. Many simply launch their drone, thinking it’s invincible. But even with years of experience, anything can happen.

A drone crash in the USA can be as unpleasant as a car accident. You can get car insurance here. You never plan for such situations, but when they happen, you have insurance. However, when it comes to drone insurance in the USA, repairing the damage to your drone should be the least of your worries.

How to get drone insurance in America?

The process is simple: open the app, select the flight zone and type of insurance, and then fill in the necessary details. The app stores all your information, so you’ll never have to fill it out again. On-demand insurance may only include liability and bodily claims, but it doesn’t cover damage to the drone itself.

To fully cover your drone in the USA, you need to get a monthly plan. You can add your drone, indicate its value, and the value of the entire kit so that in case of loss or damage, everything is insured.

The importance of drone insurance in the USA cannot be overstated. Drones give us incredible opportunities for photography and videography, but they are not perfect, and accidents happen. Don’t take risks—make sure you’re insured.

Do you need liability insurance for drones for business in the USA?

If you plan to fly for commercial purposes, on behalf of your company, or for any non-recreational purposes, insurance may be required.

When applying for a permit to film for a specific project, you may need to provide proof of drone insurance to get that permit. Some companies, especially large or multinational ones, often require liability insurance, with a minimum of one million dollars, depending on the company and the project.

Who needs drone liability insurance in the USA?

If you’re flying for fun with a small drone in your backyard or a local park, you likely won’t need million-dollar liability insurance. However, if you’re involved in major operations or working for large companies, or if you’re a professional drone pilot, you should consider drone insurance.

Is drone insurance legally required in the USA?

In the United States, drone insurance is not legally required by the Federal Aviation Administration (FAA). However, some states may require insurance depending on the type of drone and local laws. For example, Minnesota requires special drone insurance.

It’s important to study local laws and regulations regarding drones and follow them when planning your drone flight. We recommend having liability insurance or hull insurance before any major operation.

The reality is that when you have everything you need, including proper drone insurance, minor accidents don’t matter much.