Drone flying insurance

[ChicagoDroneGuy]

I h ave started a small drone flying business in the suburbs of Chicago and I'm looking to get both liability and equipment loss insurance for the business.

What do you all use for insurance in your drone businesses?

 

[Ech23]

I h ave started a small drone flying business in the suburbs of Chicago and I'm looking to get both liability and equipment loss insurance for the business.

What do you all use for insurance in your drone businesses?

Since you are in the Chicago area, l think it would be beneficial to check if your city has specific drone insurance requirements. I use SkyWatch.AI, which offers flexible, on-demand coverage with monthly or per-flight options, or Verifly (Thimble), which provides short-term liability insurance for drone flights. Global Aerospace is also a well-known provider for aviation insurance, including drones, while Hill & Usher (Aerospace Insurance Managers) specializes in drone business insurance. Some operators also report getting affordable equipment coverage through State Farm, and BWI Aviation Insurance provides comprehensive drone business policies.

 

[DroneLogix]

Global Aerospace actually underwrites the Skywatch.ai policies (since late 2021), and BWI writes drone coverages underwritten by Global Aerospace. Another source is R.V. Nuccio & Associates (RVNA), but they offer lower maximum coverage limits. RVNA policies are underwritten by Allianz Insurance Company and DOXA Insurance. Best to shop and compare when looking for a policy...especially if you need to secure an annual policy. The more you fly the more an annual policy makes sense, compared to on-demand coverages. As with all insurance, your business purpose, number and value of covered drones, and limits of liability will impact your costs. We are currently covered by Global Aerospace sold thru BWI on an annual policy and have remained with them since August 2021.

Skywatch used to pay claims very fast and with little paperwork before their switch to Global Aerospace. Claims paid by Global Aerospace take longer, in our experience. We have only had two claims for hull losses over six years with just over 5600 flights flown and a dozen different drone models covered - one DJI P4P flyaway due to confirmed internal error covered by Skywatch, and one Autel EVO II Pro hawk attack/strike covered by BWI/Global Aerospace. Skywatch paid in about 10 days (this was in 2020, prior to their affiliation with Global Aerospace). Our 2023 claim with Global Aerospace took about 45 days to get paid and lots more paperwork. On the operations/underwriting side, Global Aerospace has been very responsive to our needs when our clients have requested special certificate holder language or ACORD 25 certificates of insurance. Their underwriting team worked to find a suitable solution in each case and they typically responded within 2-3 days.

Regardless of insurer, if you depend on your aircraft for your business, you need to have a backup aircraft in your fleet so you can keep flying, regardless of loss.

Depending on state regulations, and your clients and their size and your work volume, you may also need Professional Liability, General Liability (different than Aircraft General Liability), or Workers Comp coverages. We use NEXT for our General Liability and Workers Comp coverages, and BiBerk for Professional Liability (E&O) coverage.

Hope this helps!
David
DroneLogix, LLC

 

[ChicagoDroneGuy]

Global Aerospace actually underwrites the Skywatch.ai policies (since late 2021), and BWI writes drone coverages underwritten by Global Aerospace. Another source is R.V. Nuccio & Associates (RVNA), but they offer lower maximum coverage limits. RVNA policies are underwritten by Allianz Insurance Company and DOXA Insurance. Best to shop and compare when looking for a policy...especially if you need to secure an annual policy. The more you fly the more an annual policy makes sense, compared to on-demand coverages. As with all insurance, your business purpose, number and value of covered drones, and limits of liability will impact your costs. We are currently covered by Global Aerospace sold thru BWI on an annual policy and have remained with them since August 2021.

Skywatch used to pay claims very fast and with little paperwork before their switch to Global Aerospace. Claims paid by Global Aerospace take longer, in our experience. We have only had two claims for hull losses over six years with just over 5600 flights flown and a dozen different drone models covered - one DJI P4P flyaway due to confirmed internal error covered by Skywatch, and one Autel EVO II Pro hawk attack/strike covered by BWI/Global Aerospace. Skywatch paid in about 10 days (this was in 2020, prior to their affiliation with Global Aerospace). Our 2023 claim with Global Aerospace took about 45 days to get paid and lots more paperwork. On the operations/underwriting side, Global Aerospace has been very responsive to our needs when our clients have requested special certificate holder language or ACORD 25 certificates of insurance. Their underwriting team worked to find a suitable solution in each case and they typically responded within 2-3 days.

Regardless of insurer, if you depend on your aircraft for your business, you need to have a backup aircraft in your fleet so you can keep flying, regardless of loss.

Depending on state regulations, and your clients and their size and your work volume, you may also need Professional Liability, General Liability (different than Aircraft General Liability), or Workers Comp coverages. We use NEXT for our General Liability and Workers Comp coverages, and BiBerk for Professional Liability (E&O) coverage.

Hope this helps!
David
DroneLogix, LLC

Thank you for the detailed information.