The complete 2025 guide covering everything from CAA requirements to policy comparisons, costs, claims, and expert recommendations
GPS failure, signal loss, pilot error causing total drone loss
Trees, buildings, power lines, other aircraft, birds
Sudden wind gusts, rain, hail causing crash landings
High resale value makes drones attractive to thieves
Motor failure, gimbal damage, battery malfunction
Drone interference cost $45,000 in flight delays + $12,000 CAA fine
$8,500 in medical bills + $25,000 lawsuit settlement
$150,000 repair cost + power outage compensation
$18,000 settlement for unauthorized filming
Cars, buildings, equipment, aircraft
Medical costs, compensation, lost income
Lawyers, court costs, expert witnesses
Fixed amount agreed at policy start
Current market price for equivalent model
Original cost minus depreciation
Data breach, privacy violations, cyber attacks on drone systems
Lost income while drone is being repaired or replaced
Protection while transporting drone to/from locations
Extended coverage for high-security operations
Pollution or environmental damage caused by drone operations
Coverage when using hired or borrowed drones
| Feature | Recreational | Commercial |
|---|---|---|
| Primary Use | Hobby, personal photography, fun | Income generation, business operations |
| CAA Requirements | Follow Part 101 rules, no certification | Part 102 certification required |
| Liability Coverage | $1M-$5M typically sufficient | $5M-$20M+ often required |
| Professional Indemnity | Usually not required | Essential for most commercial work |
| Annual Cost | $120-500 | $1,500-15,000+ |
| Application Process | Simple online form, instant quotes | Detailed underwriting, 5-14 days |
| Documentation | Basic drone details, pilot info | CAA certificates, operating procedures |
| Coverage Flexibility | Standard packages, limited options | Customizable, industry-specific |
Using a recreational policy for any income-generating activity will void your coverage. Even one paid flight requires commercial insurance. The distinction is about the purpose of the flight, not the drone type.
Payment typically within 5-10 business days after settlement agreement. Options may include cash settlement, repair, or replacement.
Insurer must provide written explanation. You have rights to appeal or seek independent dispute resolution through Insurance & Financial Services Ombudsman.
Don't fly without insurance: Even recreational pilots should have minimum $1M liability coverage. The financial risk is simply too high.
Match coverage to risk: Urban flying, valuable equipment, or commercial use all require enhanced coverage levels.
Read the fine print: Understand exclusions, geographic limits, and claims requirements before you need to use them.
Invest in safety: CAA certification, training courses, and safety equipment can reduce premiums and prevent claims.
Review annually: Your insurance needs will change as you gain experience, buy new equipment, or expand operations.
While not legally mandated for recreational use, insurance is highly recommended and often required by commercial clients. Some high-risk commercial operations may require specific insurance as part of CAA authorization.
For recreational use, $1-2M public liability is the minimum recommended. Commercial operators typically need $5-20M depending on their industry and client requirements. Never fly without at least basic liability coverage.
Recreational policies range from $120-600 annually. Commercial coverage costs $1,500-15,000+ depending on operations, equipment value, and coverage limits. Get quotes from multiple providers as prices vary significantly.
Generally no. Most home insurance policies exclude aircraft and provide no liability coverage for drone operations. Some may offer limited theft coverage when stored at home, but dedicated drone insurance is essential.
Yes, for recreational use. Many insurers offer instant online quotes and same-day coverage. Commercial policies typically take 5-14 days due to underwriting requirements. Never fly uninsured while waiting for coverage.
Your public liability coverage should protect you against third-party property damage claims. However, damage to aircraft you're operating may require specific non-owned aircraft coverage. Check with your insurer before flying borrowed drones.
Not necessarily. Most policies can cover multiple drones, but each must be specifically listed with its serial number and insured value. Adding new drones to existing policies is usually straightforward and cost-effective.
Yes, many policies include worldwide coverage, though some countries may have restrictions. Always notify your insurer before traveling and check if temporary additional coverage is needed for specific destinations.
Get comprehensive drone insurance quotes from New Zealand's leading providers and fly with confidence