How do I review the insurance when buying a drone business?

Insurance is easy to overlook in a drone purchase, yet one incident can be costly for a small operator. You are not trying to judge the policy yourself. You are gathering facts so that your insurance broker, and your lawyer where needed, can tell you what the business has and what you would need on closing day.

The policies themselves

Ask for copies of every current policy, not just the certificate. That usually means liability cover for operations and cover for the aircraft and payloads, often called hull cover. Read what each policy says about the type of flying done, the sectors served and the places flown. Ask whether the business has any gaps the owner has been carrying personally.

Claims, incidents and who is named

Ask for the claims history and for any incident records, including near misses and lost aircraft, even if no claim followed. Then check which aircraft and which pilots are named on the policy. A pilot who left last year, or a new aircraft that was never added, can leave a gap you will not notice until you need the cover.

Client requirements and a change of owner

Many commercial clients require proof of insurance before they hire a drone firm. Read the contracts for what they ask, and see whether your cover would meet it. Then ask the insurer whether the policy can continue after a sale, or whether you must apply for new cover. Do this before you sign, not after.