Covers third-party bodily injury and property damage from an in-flight drone (UAV) accident. Under the Aviation Safety Act, commercial drones and drones over 25 kg must carry liability insurance, making it essential for every drone operator — industrial, filming, crop-spraying, logistics and inspection.
N2N Insurance Brokerage does not represent any single insurer — it independently represents the client as an FSS-registered broker (Reg. No. 2026-012201). We compare the wordings, rates and service of AIG · Chubb · DB · Hyundai · KB · Meritz to propose the cover and price best suited to your risk. Each insurer's full wording is provided at application and binding.
A compulsory liability cover for third-party bodily injury and property damage from a crash, collision or loss of control while a drone (UAV) is in operation. Corporate and individual cover are written under the same wording, with rates differentiated by purpose, number of units and weight.
Inspecting power stations, bridges and transmission towers
Broadcast, advertising and film shoots
Pesticide spraying and drone delivery
Hobby use under 12 kg
Aviation Safety Act Article 129 (commercial use), Aviation Business Act, UAV safety-management guidelines
| Night / BVLOS flight | Drones with special-operation approval |
|---|---|
| Flight over crowds | Flight over events and spectators |
| Multiple simultaneous units | Operating several drones at once |
| Flight-recorder loss | Drone's own damage (separate) |
| Policy period | 1 year (mandatory renewal) |
|---|---|
| Insurers | KB |
| Limits | Statutory minimum or recommended practical limit |
| Turnaround | 1–2 weeks |
KRW 50,000–500,000 per drone per year (by weight and use). Commercial drones over 25 kg are rated separately.
If the insured event has already occurred at the time the contract is made, the contract is void. However, where the contract is void due to the company's intent or negligence, or where the company knew or could have known of the nullity before acceptance yet did not refund the premium, the company refunds the premium with interest at the policy-loan rate published by the Korea Insurance Development Institute, compounded annually, for the period from the day after payment to the day of refund.
The specific losses not covered (exclusions) are set out in each insurer's policy wording and product description; on this page, see the “Cover” tab(or the “Losses not covered” section) for the main exclusions. For other cover-specific grounds on which claims are not paid, please refer to the policy wording.
The company provides cover, in accordance with the policy, from the time it accepts the application and receives the first premium. Where the company accepts the application after receiving the first premium with it, cover also begins from the time the first premium was received.
The application must be completed by the policyholder, and the policyholder and the insured must sign it by hand. Failure to sign by hand may result in disadvantages regarding the validity of the contract. On an internet cyber-mall, an electronic signature may be used instead.
The policyholder has the right to be given and have explained the information needed about the product they wish to buy.
The insurer and N2N Insurance Brokerage must explain the important matters of the product to ordinary financial consumers.
When applying, the policyholder, the insured or their agent must disclose truthfully the facts they know regarding the questions in the application (including the questionnaire). Otherwise the claim may be declined or the contract cancelled. Where insurance is taken out by telephone or other means of communication, the duty is performed by answering the seller's questions, which are recorded, without a separate written questionnaire, so answers must be given with particular care.
If, after the contract is made, any of the following arises in respect of the subject-matter insured, the policyholder or the insured must notify the company in writing without delay and obtain endorsement on the policy.
The surrender value is the amount paid if the contract is cancelled early. Unlike bank savings, insurance combines risk protection and savings: part of the premium is paid out as claims to other policyholders who suffer accidents, and part covers the insurer's operating expenses, so the surrender value on early cancellation may be less than the premiums paid, or nil.
Under Article 59-4(1) of the Income Tax Act (special tax credit), for protection-type insurance taken out by an employee only, a tax credit of 12% of the premium paid (capped at KRW 1 million per year) is available. Tax matters may change with amendment or repeal of the relevant tax law.
Except as provided by law, the insurer and N2N Insurance Brokerage do not collect, use, inspect or provide personal data related to this contract — for its conclusion, maintenance and claim payment — without the consent of the policyholder, the insured or the beneficiary. However, for those purposes the insurer may, with the consent of the policyholder and the insured and in accordance with law, provide personal data to other insurers and insurance-related bodies.
The above is a summary and excerpt of the policy wording; for grounds on which claims are not paid and other details, please refer to the policy wording and product description.
Common risk patterns in drone operations — a five-scenario self-check
Liability insurance is mandatory under the Aviation Business Act when drones are used in light-aircraft-use, aircraft-rental or air-leisure-sport businesses, or operated by the state, local government or public institutions.
Field flights such as aerial photography, surveying/inspection and agricultural spraying risk damaging people, facilities and vehicles on the ground through a crash or collision.
Flight over events and spectators or in crowded areas can cause larger losses in an accident, so it should be reviewed with a separate endorsement.
Night flight or flight beyond the pilot's line of sight requires special-operation approval, and both the accident risk and the cover design differ from ordinary flight.
Running several drones at once accumulates risk per aircraft and per flight. Cover should be structured to the scale of simultaneous operation.
Even with drone liability insurance, cover can be excluded if, at the time of the accident, the drone was not registered or reported under the Aviation Safety Act and Aviation Business Act, or was flown without authorisation in a zone or at a time requiring approval. Loss outside the definition of “in operation” — from the moment the drone starts moving for flight until the moment flight ends and the motor stops — and physical damage to the drone itself are also outside the liability cover. More than holding a policy, flying while meeting the legal operating requirements such as registration, reporting and flight approval is the premise of cover.
Source: (General industry example)
The wording and structure points decision-makers most often overlook
If a drone has an accident while flying without registration or reporting under the Aviation Safety Act and Aviation Business Act, cover can be excluded. Separately from holding a policy, keep the aircraft registered and reported.
Liability insurance covers others' bodily injury and property damage. Damage to a crashed or broken drone itself must be designed as separate drone-aircraft (property) cover.
Flight that counts as a special operation can leave gaps under base cover alone. Check whether the endorsements matching your actual flight type (night, BVLOS, over crowds, etc.) are included.
The questions decision-makers ask most when considering drone liability insurance
The Aviation Business Act makes liability insurance mandatory when a light aircraft is used in a light-aircraft-use, aircraft-rental or air-leisure-sport business, or operated by the state, local government or a public institution. A fine may be imposed for non-compliance, so first check whether your purpose is commercial or public.
Generally, “in operation” runs from the moment the drone starts moving for flight until the moment flight ends and the motor stops. Loss caused to others during this period is what the liability cover responds to, and the exact scope should be checked in the wording.
No. Liability insurance covers bodily injury and property damage suffered by “others” because of the drone. Damage to the crashed or broken drone itself is not within liability cover, and drone-aircraft (property) damage must be designed separately.
Loss arising while a drone flies without registration or reporting under the Aviation Safety Act and Aviation Business Act can be excluded. The same applies to unauthorised flight in a zone or at a time requiring approval, so flying while meeting the legal operating requirements is the premise of cover.
Night flight, flight beyond the pilot's line of sight and flight over crowds are special operations, usually handled by separate endorsements. Check at application that the endorsements needed for your actual flight type are included.
The insurer calculates it based on the drone's weight and model, purpose, operating area and time, number of simultaneous units, the limit and endorsement structure, and past incident history. The exact premium and terms are confirmed after underwriting by insurers such as AIG, Chubb, DB, Hyundai, KB and Meritz.
