Drone Insurance & Liability: What Clients Should Ask Before Signing

"Do you have insurance?" is the right question — but it's only the beginning. A $1 million liability policy is widely quoted in the drone industry, but what it covers varies significantly by carrier and policy structure. Here's what to actually ask before a drone operator flies over your property.

The Two Policies That Matter

1. Hull Insurance

Hull insurance covers the drone (the aircraft itself) if it's damaged or destroyed. This matters to the operator, not to you — but it's a proxy for professionalism. An operator without hull insurance is either brand new, operating at very low margins, or taking on risk they shouldn't be. It's not disqualifying, but it's worth asking about.

2. Liability Insurance

This is the one that protects you. Commercial drone liability covers:

• Third-party property damage — if the drone crashes into your building, vehicle, or equipment
• Bodily injury — if the drone injures a person on or near your property
• Products liability — on some policies, covers claims arising from the deliverables (e.g., a faulty inspection report that leads to an undetected defect)

The industry standard minimum is $1M per occurrence / $2M aggregate. For higher-risk environments (operating near occupied buildings, crowds, or critical infrastructure), ask for $2M per occurrence.

What "Additional Insured" Means and Why It Matters

When you ask to be named as an additional insured on the operator's policy, the insurance company acknowledges your status and will defend you if a claim arises from the drone work on your property. Without this, a claim against you (even a frivolous one) would require your own counsel and insurance to respond.

This is standard practice for any commercial engagement. A legitimate drone company should be able to produce a COI naming you as additionally insured within 24 hours through their broker. If they can't or won't, that's a red flag.

What Liability Insurance Doesn't Cover

Most commercial drone liability policies have important exclusions:

• Intentional acts — deliberate misuse of the drone
• Privacy violations — in most states, capturing imagery of private property without permission may create a liability not covered by standard aviation liability
• Data breach — if your data is compromised after delivery, that's typically an E&O or cyber liability issue, not aviation liability
• Operations outside policy scope — flying at night, over people, or in controlled airspace without waivers may void coverage

Five Questions to Ask Any Drone Operator

• What is your liability coverage limit per occurrence?
• Can you provide a Certificate of Insurance naming our company as additionally insured?
• Does your policy cover operations in controlled airspace?
• Are you covered for the specific operations in our scope (night, over people, thermal, etc.)?
• Who is your insurance carrier and what is the policy number?

A professional operator answers all five without hesitation. If any question produces hedging or delay, reconsider.

At Dragonfly, we provide full insurance documentation as part of our standard onboarding for any commercial client. Contact us to request credentials or discuss your project's specific insurance requirements.