Question 1

Why do I need Drone Insurance?

Accepted Answer

Drone insurance protects your investment and your business. Without proper coverage, a single incident—whether it's a crash, chemical drift, or third-party injury—could result in significant financial loss. Insurance ensures you can continue operating even after an unexpected event.

Question 2

What is Hull Coverage?

Accepted Answer

This covers the cost of repair or replacement if your drone is damaged or destroyed. This will include physical damage coverage for your drone while in flight, and while not in flight. You get to choose your hull limit (within reason) and that is the replacement cost to make you whole in the event of a total loss.

Question 3

What is Spare Parts Coverage?

Accepted Answer

This covers the cost of repair or replacement of any equipment that is necessary for your aerial application operation that is not flying. Examples include: spare batteries, spreader systems (while detached), charging stations, cooling stations, generators, RTK stations, and a field ops kit.

Question 4

What is Chemical Liability Coverage?

Accepted Answer

Aerial application chemical liability can be categorized into 3 types of coverage: Comprehensive Chemical (CC), Limited Chemical (LC), and Excluding Chemical (XC). This limit is typically sub-limited at 1/3/1 bodily injury and property damage: $100,000 bodily injury (per person), $300,000 bodily injury (per occurrence), $100,000 Property Damage. The market can provide limits of $300k CSL, $500k CSL, and in rare cases $1M CSL (CSL: Continuous Single Limit). All policies will cover 3rd party chemical drift as that is the requirement in most states. 1st party chemical drift coverage is also available in the form of "Crops Treated" and "Adjacent Fields" endorsements. 1st party chemical drift protection only applies to custom applications, not personal acres.

Question 5

What is Non-Chemical (GL) Liability?

Accepted Answer

This covers any 3rd party liability claim that is not associated with chemical drift. This is here for if you fly the drone into someone or something. This is also where legal liability is held in the event of a lawsuit. Limits typically start at $1M but can extend up to $10M.

Question 6

What Factors Influence Agriculture Drone Insurance Costs?

Accepted Answer

Insurance providers consider several factors when determining premiums: Drone specifications (cost, size, and capabilities), Operator experience (pilot certification and flight hours — more experienced pilots are seeing perks and slight discounts), Usage (the difference between seeding operations and herbicide operations are night and day for underwriters), and Risk management (safety procedures and previous claims history are key factors in whether an underwriter will write your business).

Question 7

What is the average cost of an aerial application drone insurance policy?

Accepted Answer

As with everything in insurance... it depends. On average, a single drone operation can expect to spend between $2,500 to $6,000 on an annual policy. That is down from $8,000 to $11,000 just a few years ago.

Question 8

Are there deductibles on aerial application policies?

Accepted Answer

Yes and no. There will be deductibles on hull coverage but there won't be one for either of your liabilities.

Question 9

Is insurance mandatory for operating agricultural drones?

Accepted Answer

Regulations are evolving, but most states are going to require you carry a minimum chemical limit and underwriters are going to require you carry a minimum non-chemical limit for legal liability purposes.

Question 10

Does the insurance cover drones used for spraying pesticides, herbicides, aquatics, rights-of-way, and forestry?

Accepted Answer

Yes, but you will need the appropriate chemical coverage to cover each of those operations.

Question 11

Can I get coverage for multiple drones under one policy?

Accepted Answer

Yes. All policies must follow the Part 137 certificate holder and any drones flying under that certificate must be stated on that policy for a claim to be paid out.

Question 12

How do weather-related damages factor into insurance coverage?

Accepted Answer

Weather is a huge component when talking about aerial application insurance. These policies are occurrence-based policies and if the weather caused an occurrence triggering your policy, a claim will be paid as long as the operator was in compliance with the FAA and state regulations.

Question 13

What are Best Practices for Minimizing Risks and Insurance Costs?

Accepted Answer

Maintenance and safety: Regularly inspect your drone and have a checklist before each flight. Make sure your batteries are stored properly and cycled regularly. Regulations and certification: This is going to be the biggest factor when something goes wrong—if you are not in compliance with the required regulations, an insurance company will likely not pay out a claim due to flying illegally. Risk management plan: Have procedures for pre-flight checks, emergency landings, etc. Operator training: Ensure competence in piloting and emergency responses.

Question 14

Why VT Insurance Agency?

Accepted Answer

VT Insurance Agency is one of the leading insurance agencies in the U.S. for aerial application drone insurance and is one of the founding fathers in the agriculture drone industry. Owner, Vaughn Tolbert, is a national board member for the aerial application drone association (U.Pass), which advocates for Ag drone pilots and helps push for advancements in the industry. We have partnered with industry leaders across the country like AgriSpray Drones, Best Way Ag, Rocoza, HSE-UAV and more. With over 1,000 drones currently insured around the country, VT Insurance will make sure you are not only properly covered and in compliance with the FAA rules and regulations but are also in compliance with your specific state's regulations. There are few competing insurance companies to choose from for aerial application drone insurance coverage and VT Insurance Agency is appointed with all of them.

Frequently Asked Questions

Coverage Basics

Costs & Pricing

Policy Details

Best Practices & Why VT

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