From crashing to air-borne colliding, drones present unique operational risks — especially if you’re using them for commercial purposes over properties and people. Due to these bespoke exposures, you need to protect your business with a comprehensive drone-specific insurance package. Luckily, that’s what we specialize in!
Below, you’ll learn more about the particular drone insurance coverages you need and our services.
What Is Drone Insurance Coverage?
Most insurance policies exclude UAVs (unmanned aerial vehicles) and UAS (unmanned aircraft systems). Therefore, you must take out a specialized policy to protect your company and drone operators from third-party liabilities.
Common Drone Claims Examples
Using drones puts your business at risk of seemingly limitless claims, including:
- Bodily injury or property damage following impact
- Premises liability
- Bodily injury or property damage while the UAS isn’t in flight
- Medical costs
- Publication of images captured by the drone that violates privacy or slanders
- Loss of control
- Technical fault
- Operator error while flying the drone
- Total loss after impact
- Hacked UAV resulting in damage or loss
But let’s take a look at some real-world examples to better understand how coverage can help your business stay afloat during tricky times.
Example One: Photographer Claim
You are a professional drone photographer tasked with acquiring birds-eye-view dance floor shots at Betty’s 50th-anniversary party.
Unfortunately, your drone loses power unexpectedly and falls to the ground. On its descent, it hits Betty on the shoulder, causing injury, and she sues you for bodily injury due to the drone’s malfunction.
Thankfully, your drone commercial general liability insurance covers the legal and medical fees associated with the case, totalling $10,000.
Example Two: Videographer Claim
You’re hired to film college graduation with your high-end drone. During a coffee break, somebody steals it.
You make a claim on your drone equipment insurance policy. You’re successful and receive the cost to replace your $3,000 drone.
Example Three: Home Inspection Claim
You’re a home inspector analyzing the roof of your client’s (Sam’s) house with a drone.
During the inspection, you decided to use an automated flight mode, which ultimately failed to picture damage by the dormer window.
Eventually, Sam sues you for negligence. Luckily, your professional liability insurance policy covers the costs to repair the damage and the associated legal fees. Without the policy, you would be held responsible for paying $5,000 out of pocket.
What Does Drone Insurance Cover?
A comprehensive drone insurance package should include:
- Commercial General Liability Insurance (CGL) — Otherwise known as commercial drone liability insurance, this UAV-specific policy protects your company against third-party property damage or bodily injury. Drones present unique malfunction and crash risks, increasing their chances of being blamed in claims. CGL typically covers medical fees, legal expenses, and other relevant costs.
- Drone Equipment Insurance — Equipment insurance gives you the money to replace or repair your company’s drones following damage, loss, or theft. Since drones are expensive, you may rely on a single one to operate, and losing it would cause your business to struggle. This policy saves you from costly repairs.
- Professional Liability Insurance — Drones are programmed and controlled by you, and a smooth flight relies on the skills of the professional. This coverage provides financial protection against allegations of negligence, failure to deliver, or errors. For instance, your aerial survey failed to photograph a corner of the land, causing your client efficiency or profit loss.
What Doesn’t Drone Insurance Cover?
Drone insurance coverage typically excludes:
- Owned cargo
- Wear and tear
- Noise pollution
- Sabotage
- Munitions
- EMF (electromagnetic field)
- Employee dishonesty
How Much Does Drone Insurance Coverage Cost?
Every drone insurance package is compiled with your particular business in mind, meaning there is no one-size-fits-all price. With that said, coverage generally starts at $500 per year, assuming you request a $1 million coverage limit.
The best way to figure out the cost of your drone insurance policy is to complete our quick quote form. We’ll ask you a few questions about your business to assess your insurance needs and costs accurately. No matter what, we’ll find a leading licensed insurer with coverage options that perfectly suit your company.
Who Needs Drone Insurance Coverage?
Anybody who uses a drone for commercial reasons needs a comprehensive drone insurance policy. A plethora of businesses fit this category, including (but certainly not limited to) the following:
- Photographers
- Film production companies
- Media and entertainment companies
- Special event hosts
- Security firms
- Home inspectors
- Commercial surveyors and inspectors
- Videographers
Please keep in mind that we can’t help you find coverage for recreational or personal drones, nor can we offer policies for delivery drones.
Why Choose LiabilityCover?
We afford you the time, space, and information necessary to make rational, well-informed decisions for your business.
All you need to do is complete our secure form and let us do the hard work! Our team expertly analyzes your insurance requirements to connect you with a leading broker experienced in providing drone insurance to your industry.
Frequently Asked Questions
Who Enforces Drone Laws in Canada?
Transport Canada outlines the regulations related to drones or UAVs in their Canadian Aviation Regulations.
According to the regulations, you can operate a drone commercially as long as it:
- weighs less than 25kg.
- is in the line of sight.
- is at least 8km away from an airport.
- is at least 15.24 metres away from buildings, roads, and people.
- carries liability insurance.
Do You Need Separate Liability Insurance For Your Drone?
Standard commercial general liability insurance policies tend to exclude unmanned aerial vehicles. Therefore, you need a specific drone liability policy for your business.
What Types of Drones Can You Cover With Drone Insurance?
We can connect you with a licensed insurance broker specializing in providing coverage for commercial drones used for inspection, photography, and video.
However, we can’t offer coverage for cargo or delivery drones or those used recreationally.
Does Drone Liability Insurance Cover All Areas You Fly?
Unfortunately not. When chatting to the broker we assign, make sure you specify the areas you require coverage for. Different locations carry different risks, so obtaining sufficient coverage is key!
