Why it matters for your company
Drone operators buy it per aircraft or on a fleet basis, with limits set by what customers and sites ask. The federal rules for commercial small drone operations do not require insurance (14 CFR Part 107, accessed 2026-09-12), so the requirement arrives through contracts, municipalities and venues.
Underwriters ask about pilots, aircraft weight, operations over people, beyond visual line of sight waivers and flight hours. A company that also sells software or data products from the flights needs tech E&O beside it, because aviation liability pays physical harm only.
Related terms
- Aircraft exclusionThe clause in a standard general liability policy that removes injury or damage arising from owning, operating or entrusting an aircraft. Drones fall inside it unless the policy says otherwise.
- Hull coveragePhysical damage insurance on an aircraft itself, including a drone and often its payload and ground equipment. It is the aviation equivalent of equipment coverage.
- Part 107The federal rule for commercial operation of small unmanned aircraft under 55 pounds in the United States. It sets pilot certification and operating limits, and it does not require insurance.
- Non-owned aviation liabilityLiability coverage for aircraft your business uses but does not own, such as drones flown by contractors or rented for a job. It protects the company when a hired pilot's flight causes harm.
Sources
- 0114 CFR Part 107, Small Unmanned Aircraft Systems (Cornell LII), accessed 2026-09-12