Insuring Your Drone? Talk to Your Agent

The Federal Aviation Administration issued a rule in June that will make it easier to use unmanned aircraft systems — better known as drones — for commercial purposes such as aerial photography, equipment inspection and news gathering.

Insuring your drone, however, is anything but simple. Drones pose myriad risks, including damage to the drone itself, to people or property hit by a drone and invasion of privacy claims.

READ: The Latest on Drone Regulations

Homeowners or renters policies might — or might not — cover some or all of these risks if you’re flying a drone for fun, but it won’t cover business use. See PIA National’s one-page issue sheet, Hobbyist Drones (PIA member login required).

If you use a drone to make money, your general business insurance might cover the drone itself, but you usually need a specific aviation-liability policy to cover damage it inflicts on people or property. As with any type of insurance, you must read the exclusions carefully, and if you don’t understand them, talk to your agent.