A lot of commercial drone operators have the flying part figured out. The Part 107 is done, the drone is registered, they have some liability coverage in place. Then a bigger client comes along, sends over a contract, and suddenly there is a paragraph about insurance requirements that does not match what they currently hold. The job falls through, not because of flying ability, but because of a paper problem.
This happens more often than most operators talk about. The gap between "I have drone insurance" and "my insurance meets enterprise contract requirements" is real, and it catches pilots off guard at the worst possible time. Here is what clients are actually checking for, and how to make sure your policy holds up.
The baseline is not $1 million anymore
For most small commercial work, a $1M liability limit is fine. Real estate, small events, local businesses. But when you start pursuing utility companies, large construction contractors, government contracts, or insurance carriers, the floor shifts. Contracts regularly specify $2M, and some require $5M or $10M. The dollar amount on your policy is the first thing procurement teams look at when reviewing a COI.
If you are trying to grow your operation, check what your current policy actually allows before bidding on jobs with higher limits. Knowing that before you submit a proposal saves you an uncomfortable conversation afterward.
Why a CGL rider is usually not enough
Some operators add drone coverage as a rider onto a general commercial liability policy. It is cheaper and feels simpler. The problem is that standard CGL policies almost always include an aviation exclusion. When you add a drone rider, that exclusion may still apply depending on how the policy is written.
Enterprise clients with risk management teams know how to read a certificate. If your coverage is not a standalone aviation liability policy, the COI often gets rejected at review. You find out after you have already planned the job. A purpose-built drone insurance policy, written specifically for UAV operations, is what these contracts are looking for.
Endorsements that show up in nearly every enterprise contract
The policy limits get the first look, but endorsements are where most operators run into trouble. Three come up consistently.
Additional insured. The client wants to be named on your policy so that if something goes wrong on their job site, their exposure is covered through your insurance. Most aviation drone policies handle this without issue. App-based on-demand policies sometimes do not. Confirm before you promise it to a client.
Waiver of subrogation. This means your insurer agrees not to pursue the client to recover money paid out on a claim. General contractors and property owners often require it as standard contract language. Not every policy includes this automatically.
Operation-specific endorsements. Night operations, flights near infrastructure, BVLOS work. If your contract covers any of these, your policy needs to explicitly cover them too. Standard daytime visual-line-of-sight coverage does not extend automatically. If the policy document does not mention the operation type, assume it is excluded.
Where operators actually lose contracts
It is almost never during the proposal stage. Operators lose jobs at COI review. The client sends a certificate request, you submit what you have, and their risk team flags a gap. By that point the timeline is tight, and finding coverage that meets specific requirements in 24 hours is not always possible.
The fix is straightforward: read the insurance section of any client contract before submitting a proposal. Being able to generate a COI on demand and add additional insured instantly puts you ahead. SkyWatch lets you do this through the app in minutes, which matters when a client asks for a certificate before they will even schedule a site visit.
Frequently asked questions
Do I need more than $1M in liability coverage for commercial drone work?
For smaller commercial jobs, $1M is often fine. But utility, large construction, government, and infrastructure contracts often require $2M, $5M, or $10M. Always check the insurance section of a contract before bidding.
What is the difference between a CGL rider and a standalone drone insurance policy?
A commercial general liability policy typically includes an aviation exclusion. A drone rider added to a CGL may still fall under that exclusion. A standalone aviation drone insurance policy is written specifically for UAV operations and is what most enterprise contracts require.
What does additional insured mean on a drone policy?
It means your client is listed on your policy, extending some of your coverage to them for incidents related to your work. Most enterprise clients require this before allowing a drone contractor on site. You should be able to add it quickly and get a certificate that reflects it.
What is waiver of subrogation and do I need it?
Waiver of subrogation means your insurer agrees not to pursue the client for money it pays out on a claim. Many general contractors and property owners include this as a standard contract requirement. Check whether your policy supports it before signing contracts that require it.
When do clients ask for a certificate of insurance?
Usually before the job starts, and sometimes at the start of each project phase. Some clients ask for one before they will even schedule a site visit. Being able to generate a COI quickly and add additional insured on demand makes you easier to work with and can be the difference between landing a job and losing it to someone who is set up better administratively.
