Getting your FAA Part 107 certification proves you are qualified to fly commercially. But it says nothing about your insurance. Most Part 107 pilots buy a cheap app-based policy, assume they are covered, and find out they are not when a client rejects their certificate of insurance on their first real contract job. This article breaks down the five most common insurance mistakes Part 107 pilots make and what to do instead.
By Cory Fischer, UAS Drone Insurance
Passing your FAA Part 107 knowledge test is a significant milestone. It means you understand airspace classifications, weather, regulations, and operational requirements well enough to fly commercially. Itis the credential that separates professional drone operators from recreational hobbyists.
But it does not cover your insurance.
This is the gap that catches more Part 107 pilots off guardthan any other single issue in commercial drone operations. The certificatesays you are qualified to fly. It says nothing about whether your insurancewill hold up when a client, general contractor, or venue reviews yourcertificate of insurance before letting you on site.
Here are the most common insurance mistakes Part 107 pilotsmake, and what to do instead.
This is the single most common mistake new commercial pilots make. They get their Part 107, they want to start flying paid jobs, and they download an app that offers drone insurance by the hour or month. The price is low, the process is fast, and the app says it covers commercial operations. So they assume they are covered.
The problem surfaces on their first real contract job. The client, general contractor, or property owner asks for a certificate of insurance. The pilot sends over whatever the app generated. The client reviewsit and sends it back. The limits are too low, the additional insured endorsement is missing, the policy language does not match what the contract requires, or all three.
App-based products are designed for speed and simplicity. They are not designed for the endorsement language, documentation requirements, and underwriting depth that contract-driven commercial work demands. Passing your Part 107 earns you access to real aviation insurance markets. That access is worth using.
Here is something most pilots do not realize until they try to get proper coverage: your Part 107 certification is not just a regulatory requirement. It is an underwriting requirement. Aviation insurance carriers, the ones who write the kind of policies that hold up on commercial contracts, will not issue a policy to an operator without a valid Part 107 certificate.
This means your Part 107 is the entry ticket to preferred aviation markets. Without it you are limited to consumer-grade products. With it you gain access to carriers who understand commercial UAS operations, write policies with proper liability limits, and issue certificates of insurance that satisfy real contract requirements.
The certificate gets you in the door. What you do with that access is the next step.
New commercial pilots often purchase million in liability coverage because they have seen that number mentioned as a standard minimum. For some jobs, million is sufficient. For many commercial contracts, it is not.
General contractors on commercial construction projects frequently require million or million per occurrence. Municipalities, utilities, and government agencies often have their own thresholds. Event venues and entertainment productions can require higher limits still. An operator who accepts a contract without reviewing the insurance requirements first may find themselves unable to meet the certificate of insurance requirements after the fact.
The right practice is to ask for the insurance requirements section of any contract before you quote the job, not after you accept it. Your policy should be structured around what your actual clients require, not around whatever the default option was when you first purchased coverage.
Part 107 authorizes you to fly commercially. It does notautomatically authorize every type of commercial flight under your insurancepolicy. Most aviation liability policies include specific exclusions that canvoid coverage for operations that Part 107 pilots encounter regularly.
Common exclusions include flying over crowds or populated areas without a specific endorsement, night operations without properauthorization noted in the policy, beyond visual line of sight operations, and flights outside the approved territory listed in your policy. These exclusionsdo not show up on your certificate of insurance. They are in the policy language, and most pilots never read them until a claim is denied.
Before accepting any job with conditions that fall outside astandard daylight visual line of sight operation, verify that your specificpolicy covers those conditions. This is one of the clearest practicaldifferences between working with a specialist who asks about your operationsbefore placing your coverage and purchasing a policy from a platform that neverasks those questions at all.
Liability coverage protects other people and property ifsomething goes wrong. It does not protect your own equipment. For Part 107pilots flying consumer-grade drones, this may not be a major concern. Forpilots who have invested in professional equipment, it is a significantexposure.
Hull coverage protects the aircraft itself. Payload coverageprotects cameras, sensors, LiDAR systems, and other equipment mounted to theaircraft, which is not automatically included under hull coverage. Think of itlike insuring your truck but not the equipment in the back. If the drone goesdown on a job, the hull claim covers the aircraft. The payload is an uninsuredloss unless it is specifically scheduled on the policy.
Part 107 pilots moving into professional commercial workoften make this transition incrementally, upgrading their equipment as theirbusiness grows. Reviewing and updating your policy every time you addsignificant equipment is not optional. It is part of operating professionally.
Getting your Part 107 is the right first step. The next steps in building an insurance program that matches the commercial work you areactually doing or planning to do.
That means working with a specialist who has access toaviation insurance markets, understands commercial drone operationsspecifically, and will ask about your equipment, your clients, your contractrequirements, and your operational conditions before placing your coverage. Nota general insurance agent who added drones to their product list. Not an appthat skips all of those questions entirely.
Your Part 107 certificate proves you are qualified to flycommercially. Your insurance program should prove you are qualified to workcommercially. The two go together.
Part 107 pilots looking to understand what a properlystructured commercial drone insurance program looks like can find moreinformation at uasdroneinsurance.com.
If you are a commercial drone operator and want to make sure your current coverage actually holds up on contract jobs, request a consultation at uasdroneinsurance.com. Coverage reviews are free and take about 15 minutes.
Q: Does a Part 107 certificate include drone insurance?
A: No. A Part 107 certificate covers the regulatory requirement to fly commercially. Insurance is a separate requirement and must be purchased independently.
Q: Do I need a Part 107 to get commercial drone insurance?
A: Yes, in most cases. Aviation insurance carriers that write commercial-grade policies require a valid Part 107 certificate to issue coverage. Without it you are limited to consumer-grade app products.
Q: What insurance do commercial drone pilots need for contract work?
A: Commercial drone pilots need a dedicated aviation liability policy with sufficient limits to meet client requirements, additional insured endorsement capabilities, and hull and payload coverage for their equipment.
Q: Why do commercial drone pilots get their COI rejected on job sites?
A: The most common reasons are insufficient liability limits, missing additional insured endorsements, and policy language from app-based products that does not meet the specific requirements in commercial contracts.
Q: Does drone insurance cover night flights and operations over people?
A: Not automatically. These operations are commonly excluded from standard policies. Operators need specific endorsements to cover night flights, operations over people, and other non-standard conditions.
About the Author
Cory Fischer is a licensed P&C producer and commercial drone insurance risk manager at UAS Drone Insurance(uasdroneinsurance.com). He specializes in aviation-standard coverage for FAA Part 107 and Part 137 operators nationwide, with direct access to preferredaviation insurance markets. Colorado License 779802.
