The FAA doesn’t require Part 107 pilots to carry insurance. Your clients will, almost universally — and the gap between those two facts is where a lot of new commercial operators get caught off guard.
The Realistic Range
For a standard commercial operation, a $1 million liability-only annual policy typically runs somewhere between $300 and $1,000 per year, with a meaningful cluster of quotes landing around $450 to $650. On-demand hourly coverage exists too, usually priced between $5 and $25 per hour, which can make sense if you fly only occasionally rather than running a sustained operation. Neither of these numbers is “the” price — actual quotes are set by aviation underwriters reviewing your specific operation, not read off a published rate card.
Why Two Similar Operators Get Different Quotes
The same drone flown by two different operators can generate very different premiums, because underwriters are pricing the operation, not just the aircraft. What you’re actually doing — roof inspections versus agricultural spraying versus flights over crowds at a public event — changes the risk profile substantially. Where you fly matters too: dense urban airspace and operations near airports both raise quotes relative to rural open-country flying. And your own track record counts: a clean claims history and a Part 107 certification (insurers treat certified pilots as materially lower risk than uncertified ones) both tend to lower what you’re quoted.
Liability vs. Hull Coverage — Know the Difference
Liability insurance is what your clients actually require, and it’s what protects you if your drone injures someone or damages property that isn’t yours. It does not cover your own drone. Hull coverage is separate, protects your own equipment against crash or weather damage, and typically adds a meaningful percentage on top of your liability premium depending on how much your gear is worth. A common mistake is assuming a manufacturer’s care/replacement program (like DJI’s) functions as insurance — it doesn’t. It replaces hardware; it provides zero liability coverage and won’t satisfy a client’s certificate-of-insurance requirement.
What Clients Actually Ask For
Most commercial clients want to see proof of a $1 million to $5 million liability policy before they’ll let you fly on their property, full stop — this is close to a universal requirement in construction, real estate, and infrastructure inspection work. Budget for the insurance before you budget for the next piece of equipment; it’s the one line item that determines whether you’re allowed to work at all, not just how well you can do the job.