Complete 2025 comparison guide to help you understand the differences, costs, and requirements for each type of drone insurance in New Zealand
If you receive ANY payment or benefit from drone activities (even once), you need commercial insurance. This includes gifts, bartering, or future payment promises.
| Feature | Recreational | Commercial |
|---|---|---|
| Primary Use | Personal enjoyment, hobby flying, unpaid photography | Any income-generating activity or business operation |
| Legal Requirements | Follow Part 101 rules only | CAA Part 102 certification mandatory |
| Liability Coverage Range | $1M - $5M | $5M - $50M+ |
| Professional Indemnity | ❌ Not included | ✅ Available & recommended |
| Equipment Coverage | Basic accidental damage, theft | Comprehensive with business use coverage |
| Business Interruption | ❌ Not available | ✅ Available |
| Annual Cost Range | $120 - $600 | $1,500 - $15,000+ |
| Application Process | Simple online form, instant approval | Detailed underwriting, documentation required |
| Geographic Coverage | Worldwide available | Worldwide with enhanced options |
| Claims Processing | Standard 5-10 business days | Priority handling, 3-7 business days |
| Policy Flexibility | Standard packages, limited customization | Highly customizable, industry-specific |
| Payment Options | Monthly or annual | Monthly, quarterly, or annual |
Property photos/videos for listings or marketing
Paid photography/filming services
Progress documentation, site surveys
Crop monitoring, spraying operations
Power lines, bridges, cell towers
If monetized through ads or sponsorships
Selling photos/videos to stock agencies
Teaching drone flying for payment
Trading services instead of cash payment
Free work to build portfolio for future business
Even a single commercial flight on a recreational policy will void your coverage entirely. Insurers investigate claims carefully and will discover commercial use through:
$2,000 annual premium ÷ $150 per shoot = 14 jobs to break even
$3,000 annual premium ÷ $800 per wedding = 4 weddings to break even
$5,000 annual premium ÷ $1,200 per project = 5 projects to break even
Real estate, basic inspections - predictable income
Events, agriculture - seasonal variations
Emergency services, crowds - specialized premium work
Basic personal details, drone information, usage type
Automated pricing based on drone value and coverage
Pay online, immediate coverage activation
Email delivery within minutes
Total Time: 15-30 minutes from start to coverage
Comprehensive business and operations questionnaire
CAA certificates, operating procedures, risk assessments
Professional risk assessment, possible follow-up questions
Custom quote issued, payment, coverage activation
Total Time: 5-14 business days for complete process
Consider not just what you do now, but what you might do in the future. Commercial policies are harder to get and more expensive to change later.
Using recreational insurance for even one commercial flight will void your entire policy. This means no coverage for liability claims or equipment loss. The financial risk can be devastating.
Situation: Flying for fun, posting photos on social media (not monetized), no business intentions
Recommendation: Recreational insurance with $2M liability and comprehensive equipment coverage
Situation: Serious about drone photography, might sell prints occasionally or do favors for friends
Recommendation: Commercial insurance - the line between hobby and business is easily crossed
Situation: Starting a drone service business, need to build client base and reputation
Recommendation: Commercial insurance with $10M liability, professional indemnity, and business interruption
Situation: Construction company, farm, or other business adding drone capabilities
Recommendation: Commercial insurance integrated with existing business insurance policies
Situation: Currently recreational but might do paid work in future
Recommendation: Start with recreational, upgrade to commercial BEFORE any paid work
2-6 weeks total (CAA certification takes longest)
Expect 3-10x increase in annual premiums
May be difficult to get commercial coverage again later. Consider keeping commercial policy.
Potential 70-90% reduction in premiums
No, you need one policy type that covers all your activities. If you do any commercial work, you need commercial insurance for all drone activities, recreational included.
Even one commercial flight per year requires commercial insurance. The frequency doesn't matter - it's the nature of the activity that determines the required coverage type.
Yes, because your personal assets are at risk without proper coverage. A single liability claim could cost more than decades of insurance premiums. It's essential business protection.
They investigate thoroughly during claims: social media, bank records, business registrations, witness statements, CAA logs, and more. Commercial use on recreational policies always results in denied claims.
Some insurers allow this, but you'll need CAA certification first. Most require canceling the recreational policy and starting fresh with commercial coverage. Never fly commercially without proper coverage.
Professional indemnity and higher liability limits. Commercial policies also offer business-specific features like business interruption and enhanced equipment coverage for professional use.
No, the same drone can be used for both, but your insurance must match your highest level of use. If you do any commercial work, you need commercial insurance for all activities.
Get personalized quotes for both recreational and commercial drone insurance to compare your options