Drone insurance

See drone insurance options tailored for brokers, including coverage details and industry trends. Explore FAQs and best practice in sharing expert advice with clients

What is drone insurance? 

Drone insurance provides financial protection for drone operators against risks like accidents, property damage, and liability claims. Drones are widely used across Australia in industries such as: 

  • agriculture 
  • military 
  • construction 
  • emergency services 
  • delivery logistics  

These applications are transformative but expose operators to major risks. These include collisions, equipment damage, and privacy violations. 

The Civil Aviation Safety Authority (CASA) regulates drone usage in Australia and mandates strict compliance with safety standards. Recreational users must fly within visual sightlines and avoid populous areas, while commercial operators need specialised licences.  

Drone insurance complements these regulations by covering third-party liability, physical damage, and professional indemnity claims, making sure operators remain compliant and protected. 

Drone insurance: industry trends and emerging risks 

Drone use in Australia is transforming delivery industries, with some firms embracing this expansion while focusing on regulatory compliance. Digital integration exposes drones to cyber-attacks, while inexperienced operators increase risks of property damage and injury.  

Alongside these challenges, notable trends are also emerging:  

  • increased commercial use: drones are transforming law enforcement, rescue, and relief 

  • evolving regulations: regulations adapt to balance innovation with safety, addressing liability and challenges under Australia's drone rules 

  • innovative insurance products: insurers offer pay-as-you-fly models and add-ons, enabling coverage based on real-time flight data and operator requirements 

Insurers should focus on cybersecurity measures, usage-based models, and operator training to mitigate drone risks. Stakeholders should also adjust their strategies to meet the changing needs of Australian drone insurance. 

Brokers can explore more options for aviation and drone-related concerns under the aircraft insurance category page. 

Drone insurance FAQs 

What insurance do I need for a drone? 

In Australia, drone operators should consider the following insurance types: 

  • public liability insurance: protects against third-party claims for property damage or injury caused by a drone 

  • hull insurance: covers physical damage to the drone and its equipment 

  • professional indemnity insurance: tackles claims related to professional services, like aerial photography 

These policies ensure compliance with Australian regulations and provide financial protection for drone operations. 

Can insurance cover a used drone? 

Yes, insurers in Australia provide coverage for used drones. Policies depend on the drone's condition, usage, and the operator's requirements. 

What are the exclusions for drone insurance? 

Common exclusions in its policies include: 

  • illegal activities: operating the drone unlawfully or against regulations 
  • unapproved modifications: altering the drone without manufacturer or insurer consent 
  • lack of maintenance: failing to properly maintain the drone as required 

Reviewing policy exclusions helps guarantee compliance and coverage validity. 

How much does it cost to insure a drone? 

On average, annual premiums range from $500 to $750 for coverage up to $1 million. Cost of drone insurance in Australia depends on factors such as: 

  • experience level: operators with more flight hours may receive lower premiums 
  • drone specifications: the size, weight, and value of the drone influence insurance costs 
  • operational area: flying over populated areas or near hazards can increase premiums  

Comparing quotes from multiple insurers helps identify the most suitable coverage for individual requirements. 

Does insurance cover a lost drone? 

In Australia, drone insurance policies may cover loss, but coverage varies by insurer and policy terms. Some policies cover physical loss or damage to the drone. 

Do I need a licence to make money off a drone in Australia? 

Yes, earning income with a drone in Australia requires a Remote Pilot Licence (RePL) under Part 101 of the Civil Aviation Safety Regulations 1998 (CASR). This licence allows operators to follow safety rules and legally use drones for business. 

How much does it cost to get a drone licence in Australia? 

The cost of obtaining a RePL varies depending on the training provider and course specifics. For example, Toll Uncrewed Systems offers RePL training for $1,750, with a conversion course for those with prior aviation experience at $890. 

Who typically needs drone insurance coverage? 

Drone insurance is essential for professional users and casual owners using drones for hobbies or fun. Specific examples include: 

  • construction: for site surveys and inspections 
  • media: for filming and photography projects 
  • agriculture: for crop monitoring and spraying 
  • real estate: for aerial property photography 
  • recreational users: for protection against accidental liabilities 

How does drone insurance help protect clients? 

This insurance offers safeguards in various scenarios, including: 

  • property damage: covers repair or replacement if a drone damages property 
  • personal injury: includes medical expenses and legal fees for injuries caused by a drone 
  • data breach: covers legal and compensation costs for unauthorised data capture 

Drone insurance acts as a safety net, protecting operators and clients from unexpected incidents, financial losses, and legal issues. 

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