Drones are now routine tools for real-estate photography, roof inspections, construction progress, agriculture, mapping, media production and many other small businesses. The aircraft may be small, but the liability can be significant: a crash can injure someone, damage property or interrupt a commercial project.
The insurance question starts with a simple inventory: what can this operation damage, and what property do we need to protect? Then compare those exposures with both aviation-specific coverage and the business policies you already carry.
Part 107 and insurance are separate questions
The Federal Aviation Administration’s Part 107 rules govern a broad range of commercial and government operations involving small unmanned aircraft. The FAA’s Part 107 overview focuses on operating requirements such as pilot certification, aircraft registration, visual line of sight and operating conditions. It does not create a blanket statement that every Part 107 operator must buy a particular insurance limit.
Insurance can still be required in practice. A client, film location, venue, municipality, property owner or project contract may require a certificate of insurance and may ask to be named as an additional insured. FAA advisory material for drone operators notes that entities often request insurance certificates as part of permitting or contracting.
The main drone insurance coverages
| Coverage | What it is designed to address | Consumer/business question |
|---|---|---|
| Third-party liability | Bodily injury or property damage claims arising from drone operations | What limit does the client or contract require? |
| Hull / physical damage | Damage to the insured drone itself, subject to policy terms | Is settlement based on scheduled value, repair cost or another basis? |
| Payload or equipment | Cameras, sensors or other attached equipment when scheduled or covered | Are expensive payloads included or separately listed? |
| Non-owned or rented drones | Operations using aircraft the business does not own | Does the policy extend beyond scheduled owned aircraft? |
| Privacy / media / cyber-related liability | Some policies may address specified privacy, data or media allegations | Is this included, endorsed or excluded? |
Why a standard CGL policy may not be enough
Commercial general liability policies can contain aircraft-related exclusions or definitions that affect UAS claims. Never assume the word “business liability” means every drone operation is covered. Ask the carrier or broker specifically whether unmanned aircraft liability is included, excluded or endorsed.
Our guide to CGL per-occurrence and aggregate limits explains how ordinary liability limits work. Drone liability may sit in a separate aviation policy with its own limit, deductible and territory.
What is a certificate of insurance for a drone job?
A certificate of insurance, or COI, is evidence of insurance. It does not rewrite the policy by itself. If a contract requires additional insured status, a waiver of subrogation or primary and noncontributory wording, those requirements need to be supported by the policy and endorsements, not merely typed onto a certificate. See our certificate of insurance guide for the distinction between proof and actual coverage.
Five questions before accepting a drone contract
- Is the flight legal? Confirm Part 107, registration, airspace authorization and operational requirements that apply.
- What does the contract require? Review limits, additional insured wording and evidence deadlines before quoting the job.
- Who owns the drone and payload? Owned, leased, rented and client-supplied equipment may require different treatment.
- What happens after a crash? Confirm liability, physical damage, loss-of-use and deductibles rather than focusing only on the premium.
- Are subcontractors involved? Determine whether independent pilots need their own insurance and how the contract allocates responsibility.
Do you need inland marine coverage too?
Potentially. Cameras, surveying equipment and tools can be exposed while being transported or used away from the business premises. Depending on the policy, a separate inland marine or equipment policy may be relevant. Our inland marine guide for business tools and equipment explains that coverage category.
How much drone liability insurance should a business buy?
There is no universal limit that fits every operator. Start with contractual minimums, then consider the maximum credible injury or property damage exposure, where you fly, the density of people and property, the value of the project and whether umbrella or excess coverage actually follows the aviation risk. Do not assume a commercial umbrella automatically sits over a drone policy; review the schedules and exclusions. Our commercial umbrella vs. excess liability guide explains why that distinction matters.
Frequently asked questions
Does FAA Part 107 require a specific amount of drone insurance?
The FAA Part 107 operating rules do not establish a universal insurance limit for every commercial small-drone operator. Contracts, venues, local requirements or other circumstances can still require insurance.
Does general liability insurance cover commercial drones?
Do not assume it does. Aircraft or UAS exclusions and endorsements can materially change coverage. Ask the insurer specifically about your drone operations.
What is drone hull coverage?
It is physical damage coverage for the insured aircraft, subject to policy valuation, deductibles, exclusions and listed equipment.
Can a client require additional insured status?
Yes, contracts often require it. The policy must actually support the requested status and wording; a COI alone does not create coverage.
Sources & further reading
Reviewed October 6, 2026. Aviation rules, contract requirements and insurance forms change. Verify current FAA requirements and the actual policy before a commercial flight.
