Your complete guide to commercial drone insurance

This guide is compiled to explain what commercial drone insurance is and why you need it if you intend to operate drones commercially – you can find out what is meant by the term ‘commercial use’ in one of our previous blog articles here.

What is Commercial Drone Insurance?

As the term suggests, commercial drone insurance is a specialist insurance policy for commercial users of drone equipment. In the same way that a car insurance policy covers your legal obligation to drive your car on the public highway, a commercial drone insurance policy covers your legal obligation to fly your drone professionally.

Before reading this, you might have asked the question: “Wouldn’t one of my current business insurance policies cover my legal obligation?” However, the answer to this question is a resounding NO! The commercial use of a drone requires compliance with a specific EU aviation regulation, known as: (EC) 785/2004. This is one of the critical additions that a dedicated commercial drone insurance policy provides.

Do I need Commercial Drone Insurance?

Whilst we certainly wouldn’t recommend it, you are able to own and fly a drone recreationally without any form of drone insurance in place. However, if you intend to fly your drone commercially, you are required to obtain your Permission for Commercial Operations (PfCO) from the Civil Aviation Authority – it is not possible to obtain a PfCO without having a commercial drone insurance policy in place.

What to look for in a Commercial Drone Insurance Policy

  • The single most important point that all commercial drone users should confirm is that the proposed policy is fully compliant with Regulation (EC) 785/2004 and that the policy has a minimum third party liability coverage of £1 million per third party claim – this is set by the regulation and covers operators’ legal obligation where the Maximum Take Off Mass (MTOM) of the drone is below 500kg. Without this in place, you will be operating illegally.
  • Consider whether you want to insure against damage, theft and loss of your drone equipment to prevent unforeseen replacement costs and if so, look for a provider whose policies offer this.
  • As with any insurance product, it is prudent to pay attention to the policy’s exclusions to ensure that it is a suitable match for your planned operation(s).
  • Depending on where you plan to carry out your drone operations, you should check the geographic locations that your policy applies.
  • Some drone users aren’t flying every day. If this is you, look for a provider who offers the flexibility of ‘pay-as-you-fly’ policies.
  • Check that any cap on flight time/number of flights is appropriate for your operation

Find out more

RAWview is providing prospective commercial drone users with an end-to-end solution by recommending and supplying every element of a new commercial drone operation.

We will provide you with all the necessary information and the solution to help integrate commercial drone technology into your business with ease and simplicity.

Contact our team to find out how we can help you today.