You land a solid commercial job. The client sends over their standard services agreement, and somewhere in the insurance section, you hit terms like "primary and non-contributory," "waiver of subrogation," and "additional insured." If you're not sure what those mean or whether your policy already covers them, you are not alone. This comes up constantly among commercial drone operators, and getting it wrong can cost you the contract or leave you personally exposed if something goes wrong on the job.
Here is what these terms mean and what you need to know before you sign.
Additional insured
When a client asks to be listed as an additional insured on your policy, they want their name added to your coverage. If a claim arises from your drone operation and they get sued alongside you, your policy would respond to cover them up to your policy limits.
Most commercial drone insurance policies allow you to add additional insureds, but it typically requires a specific endorsement. With annual policies, this is often included. With on-demand coverage, you may need to request it before the job and confirm it is in place before you fly. Always ask your insurer to issue a certificate of insurance (COI) showing the client by name as an additional insured. That COI is what most clients and venues will actually ask for before you get on site.
Waiver of subrogation
Subrogation is when your insurance company pays a claim on your behalf and then goes after a third party to recover that money. A waiver of subrogation means your insurer agrees not to pursue the client to recover costs, even if the client was partially at fault.
Enterprise clients and property managers ask for this regularly, and for good reason from their perspective. If your drone damages something on a job and the client's own negligence contributed to the situation, they do not want your insurer coming after them. Check whether your policy supports this endorsement. Many do, but you need to confirm before the job, not after a claim is filed.
Primary and non-contributory
This language means your policy pays first before the client's own insurance has to contribute anything. Without it, if a claim involves both you and the client, the two insurers might argue over who pays what share. Clients, especially corporate and government ones, want to know your policy steps up as the primary layer, with no contribution required from their side.
Some standard drone policies do not include this language automatically. It may need to be added via endorsement, and some insurers charge extra for it. Ask before you quote the job, so you are not caught short when the contract lands in your inbox.
Per-occurrence vs. aggregate limits
Most contracts specify a minimum per-occurrence limit, meaning the amount available for any single incident. A $2M aggregate with a $1M per-occurrence limit means each individual claim is capped at $1M, even if your total annual coverage is higher. Read the contract carefully on this. Some clients, particularly in construction and infrastructure, specify both figures and will not accept a policy that does not meet each one separately.
Before you sign
Review the insurance section of every client contract before you agree to the work. If the language requires endorsements you do not currently have, contact your insurer to get them added before you start. Many operators delay this step until the job is scheduled and then scramble, which sometimes means losing the contract entirely. At SkyWatch, you can pull a COI, add additional insureds, and request endorsements without calling a broker. Knowing what a contract requires before you fly is one of the clearest ways to run a professional drone operation.
Frequently asked questions
Does my drone insurance policy automatically include additional insured coverage?
Not always. Many policies support it, but you typically need to request the endorsement and specify the client's name and address. Check with your insurer before accepting a job that requires it.
What happens if I fly a job without meeting the client's insurance contract terms?
If a claim arises and your policy does not match what the contract required, the client may have grounds to hold you personally liable for gaps in coverage. You may also face contract penalties for non-compliance.
How do I know if my policy is primary and non-contributory?
Look at your policy declarations page or ask your insurer directly. If that language is not listed, request an endorsement before the job. Not all insurers offer it, so it may factor into which policy you choose for a specific contract.
Can I add a waiver of subrogation to an on-demand drone policy?
This depends on the insurer. Some on-demand policies support endorsements like waiver of subrogation, but you need to request it in advance and confirm it appears on your COI before flying.
Do all commercial drone clients require these endorsements?
No. Smaller clients and private individuals often have minimal insurance requirements. Corporate clients, government agencies, utilities, and construction companies are the most likely to request additional insured status, waiver of subrogation, and primary and non-contributory language in their vendor agreements.
