Drone Show Insurance: Why It’s a Must & What to Consider

To understand why insurance is essential and what to consider, we spoke with Simon Ritterband, Managing Director and Founder of Moonrock Insurance. He set-up the company almost a decade ago after spotting that the growing drone sector needed a lot more insurance support. Moonrock Insurance is now well-established as a global leader in the drone and eVTOL insurance market and backed by A-rated insurers.

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Why is insurance essential for drone shows?

First and foremost, it's mandatory. Additionally, drone shows often occur in areas with crowds, making public safety paramount. The primary requirement is to ensure robust protection for the general public in case of any incidents.

These shows can take place in any location, as long as you have the relevant authorization. You need to consider the large number of drones in the air, third-party damage to property, and the potential for drones to fall out of the swarm and cause damage or injury. People might assume they don’t need to be concerned since swarm drones are light. However, if a large number fall and hit a roof or go through windows, it could cause considerable damage.

Additionally, these drone shows often operate for third-party entertainment companies, such as Disney. For these companies, it is essential that any drone show operator has high-quality, reliable insurance, providing them with additional confidence to employ the drone show experts.

What are the biggest risks that drone show operators should be aware of?

There are many risks that might not be immediately apparent. For example, drones are usually planned to land safely if a problem occurs. In the past, operators often chose a body of water as the safest option. However, we’ve identified concerns with this approach, such as battery leakage contaminating the water, increased salvage costs, and environmental impact.

We now request that the return to home or safe landing zone be on land. So even if the drone falls and crashes, it’s actually cheaper to clean up and results in better environmental outcomes. This example highlights how unintended consequences can be a key risk.

Exposure to large crowds is also a risk that needs to be closely monitored. We ask operators to ensure there is a minimum of 50m separation between the crowd and where the show takes place. This is usually built into any operator’s safety case when preparing the reports.

What types of coverage are recommended for drone show providers?

First of all, its liability coverage: a minimum of £1 million is essential. However, for larger events such as festivals, event organizers may require between £5 million to £10 million in coverage. At Moonrock, we offer flexible coverage that allows operators to purchase £1 million in liability and increase to higher limits—up to £15 million—on a job-by-job basis when needed. For businesses flying more than five times a year at higher liability levels, it may be more economical to secure an annual policy with a set higher limit. However, for new businesses looking to keep initial costs down, starting with £1 million liability and increasing coverage as required provides a practical and flexible option.

Ensuring the individual drones is also valid for operators. Sometimes, operators only want to insure for liability because they believe they can cover the cost of damaged drones. However, they might have 500 drones costing £1500 each, and these drones are not just at risk when in the air. We've seen instances where operators have only insured for liability, and then, a month later, their warehouse has been broken into, and they lost £750,000 pounds worth of equipment.

Clients must be aware that the risk in air is one thing and must also consider the ground risk for fire theft and accidental damage, because they would not be covered under their general business insurance. 

We also recommend coverage across different regions. Our policies allow for global operations, provided the relevant authorisation from local aviation authorities is obtained.

How do legal requirements for drone insurance vary across different regions?

There's not a country in the world where you're not required to get insurance for drone shows but operators do need to consider how the risks differ. For example, in the USA we tend to see more litigation if a drone causes injury to a person, that can mean a liability rate increase for that region.

Different countries have varying minimum liability requirements. In regions like Africa, South America, or China, the minimum liability levels are often lower than in the US, UK, or Australia. At Moonrock, we encourage higher liability limits to promote safety and responsibility, as the value of human life is the same everywhere.

Are there any specific insurance restrictions regarding drone types?

The industry has about half a dozen specialist manufacturers, but there is no formal certification process for these drones. At Moonrock, we believe it’s important to consider the operating system used to manage drone shows rather than just the drones themselves. The software managing the drones is the biggest determining factor for safe operation.

That’s why we partner with SPH Engineering; we believe they offer the most comprehensive and best drone show software on the market. After evaluating multiple options, we found that SPH Engineering provides the best risk mitigation and operational functions. Our partnership allows us to offer exclusive discounts to clients who use their software.

Have you seen any recent trends or case studies that highlight the importance of proper insurance?

While drones are generally very safe, incidents can still occur. For example, there have been a couple of instances where a large number of drones have fallen out of the sky. These were put down to adverse weather conditions where a gust of wind might have picked up and taken the drones off course. We’d always advise firms not to operate if weather conditions aren’t favorable or take a turn for the worst.

What advice would you give to companies choosing an insurance provider for drone operations?

The rule of thumb is ‘don’t go for the cheapest option’—you want to work with a company with a deep understanding and knowledge of the industry. We’ve seen a number of companies enter the market over the years, only to exit after a year or 18 months. So choose a well-established insurer who will be around to support you now and in the future. 

We’d also suggest operators look for an insurer with A-rated and Lloyd’s capacity which are both marks of quality and reliability. If you've got Lloyd’s insurance capacity behind you, you don't get better than that.  And you want your provider to be playing an active role in improving the education around drones, at Moonrock we have developed a Knowledge Hub which is aimed at widening the knowledge of those operating in the sector and advocating for safety. 

Drone show insurance is not just a legal necessity—it is fundamental to responsible operations. By ensuring proper coverage, drone show operators can protect their business, comply with legal requirements, and deliver spectacular shows safely. Choosing an experienced and reliable insurance provider like Moonrock ensures the best protection for both operators and their clients.

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