Commercial Drone
Insurance

Commercial Insurance for Drones

Specialist insurance for commercial drone operators

Cox Mahon provides specialist Commercial Drone Insurance designed to meet the needs of professional drone users operating across a wide range of industries.

Our policies are fully compliant with EU regulation EC 785/2004 and CAA requirements, offering comprehensive protection for your business operations — whether you operate a single drone or manage a fleet.

Key features include:

• Full compliance with EC 785/2004 and CAA requirements
• Protection against theft, loss, accidental damage, and fly-aways
• Worldwide cover included as standard
• Suitable for diverse sectors such as film and media, agriculture, construction, surveying, and search and rescue
• Optional extensions available to tailor your cover

Specialist aviation cover for drone operations

We arrange aviation-grade cover specifically designed for the commercial use of drones, supported by an experienced claims service.

Cover can include:

• Multiple drones and unlimited qualified pilots under one policy
• Insurance for operators flying within both the open and specific categories, including A1, A2 and A3 subcategories, subject to appropriate certification

What does commercial drone insurance cover?

Protection for a wide range of uses

Our commercial drone policies can include cover for:

• Film and media production
• Search and rescue operations
• Surveying and mapping
• Security and monitoring
• Agriculture and construction

Public Liability Cover

Regulatory compliance – EC 785/2004

Our policies are compliant with CAA and EU EC 785/2004 regulations, providing:

• Public liability for injury and property damage
• Cover extensions for war, terrorism, and hijack
• Protection against invasion of privacy and noise liability

Loss, theft and damage cover

Cover can extend to loss, theft, or accidental damage to drones and associated equipment, whether at your premises, in transit, or during operation.

This includes incidents such as hijacking, helping protect your business from unexpected interruptions.

Understanding EC 785/2004 and commercial drone usage

Although EC 785/2004 initially appears to exempt smaller ‘model aircraft’ under 20kg, aviation authorities interpret ‘model’ to mean recreational use only.

Any drone used for commercial activity – where payment or hire is involved – must therefore comply with this regulation.
All commercial operators are legally required to obtain compliant aviation insurance before undertaking any operations.

For recreational users, drones under 20kg are not subject to this requirement, although local aviation laws may differ by country. We recommend checking with the relevant authority before flying abroad.

Frequently Asked Questions

Do I need commercial drone insurance?

Yes – insurance is required to operate a drone for any commercial purpose.
You’ll also need compliant cover to complete the CAA qualification process (both theory and practical), which is mandatory before applying for permission to fly commercially in the UK.

Standard property or business insurance does not extend to drone operations, so even if flying over your own premises for work purposes, dedicated cover is still required.

What are the CAA requirements for commercial drone use?

Under EC Regulation 785/2004, drones used commercially are classified as aircraft, and their operators as aircraft operators.
To obtain a CAA permit for commercial operations, you must

• Demonstrate evidence of third-party liability insurance that meets the regulatory minimum of 750,000 SDRs (Special Drawing Rights)
• Hold the appropriate qualifications and permissions for your operational category

Cox Mahon’s policies start from £1 million public liability, exceeding the minimum legal requirement, with higher limits available up to £50 million.

How do I show compliance to the CAA?

Your policy documentation will confirm that cover is compliant with CAA and EU EC 785/2004 standards.
The correct level of liability depends on your drone’s weight and category, so it’s important to check this before applying for your permit.

Are there any exclusions I should be aware of?

• Flights must be conducted under the authority of your CAA commercial permit
• Some hazardous or restricted locations may require extended permissions
• Although worldwide cover is available, operations in areas under FCDO travelrestrictions must be declared in advance
• Drone racing is excluded
• Wear and tear, mechanical or electrical breakdown, and use exceeding 500 flight hours per year without referral are not covered

Full details are provided in your policy wording and Insurance Product Information Document (IPID).

Do I need drone-related qualifications to buy this cover?

Yes – all operators must hold valid Operator IDs for each drone and Flyer IDs for all pilots.
Additional training may be required depending on your category of operation (A1, A2 or A3).

What should I consider when choosing drone insurance?

Your level of cover will depend on how your drone is used and its value.

You may choose:

• Liability-only cover – ideal for smaller or lower-cost drones
• Comprehensive cover – including hull, payload, and spares protection

Commercial drone insurance must always include liability cover to meet CAA requirements.

Cox Mahon can provide insurance for individual operators, multiple drones, or larger fleets, offering a flexible solution tailored to your business.