There is currently no general Australian aviation rule requiring every drone operator to hold Public Liability Insurance.

However, liability insurance can still be important for commercial drone operations.

Why can Drone Liability Insurance be important? #

A drone accident could potentially cause:

• Personal injury.
• Damage to buildings.
• Damage to vehicles.
• Damage to other property.
• Damage to another aircraft.

The financial consequences can be significant.

Can clients require insurance? #

Yes.

A customer, principal contractor, government agency or property owner can require a drone operator to hold specified liability insurance as a condition of performing the work.

The required limit can be stated in a:

• Contract.
• Permit.
• Tender.
• Site-access agreement.

Can landowners require insurance? #

Yes.

CASA notes that landowners and administrators can require operators to provide evidence of insurance before allowing drone operations on their property.

Does ordinary Public Liability Insurance cover drones? #

Do not assume that it does.

General Public Liability policies can contain aviation or aircraft exclusions.

A specialist Drone Liability policy may therefore be required.

What liability limit should I choose? #

There is no single limit suitable for every operator.

Consider:

• Contract requirements.
• Drone size.
• Operating locations.
• Work near people or property.
• Client requirements.
• Potential severity of an accident.