Navigating the world of commercial drone operations requires understanding the FAA’s Part 107 regulations. Whether you’re a new drone operator or an experienced pilot looking to stay compliant, this guide covers all aspects of Part 107 operations. From initial certification to operational rules, waivers, and airspace authorizations, we’ll break down the essentials. Our goal is to help you gain the knowledge needed to operate safely, legally, and efficiently—empowering you to fly with confidence under Part 107 rules.
For businesses operating under FAR Part 107—those using drones or Unmanned Aircraft Systems (UAS) for commercial purposes—insurance coverage is a must. Whether you’re capturing aerial photos, conducting inspections, or providing drone services, certain insurance policies will protect your business from liability, equipment loss, and unexpected costs. Here’s a breakdown of the essential insurance coverages every FAR Part 107 business should consider:
Drone hull insurance covers the physical damage or loss of your UAS, which can be costly to repair or replace. This policy protects your investment from accidents, theft, and damage during storage, transport, or flight. Since even minor damage can lead to significant repair costs, this coverage is crucial for any commercial drone operator.
Liability insurance is essential for commercial drone operations, covering any claims of property damage or bodily injury to third parties. If your drone causes an accident, like damaging a building or injuring someone, this policy helps cover the cost of repairs, medical expenses, and legal fees. Given the potential for liability in crowded areas or urban environments, this coverage provides peace of mind for operators.
For businesses that rent or borrow drones, non-owned drone liability coverage is a smart choice. This coverage protects you from liability if an incident occurs while using rented or borrowed equipment. It’s especially useful for businesses that occasionally expand their drone fleet or try new models without purchasing them outright.
This coverage protects your business in case of claims related to privacy violations, defamation, or trespassing, which can occur if your drone captures footage that individuals consider an invasion of privacy. This is particularly important for operators working in populated areas or in industries such as real estate and media, where privacy-related incidents may be more likely.
Drones are highly digital, often relying on GPS, cameras, and data transmission. Cyber liability insurance protects your business from risks related to hacking, data breaches, or control loss due to cyber interference. It’s particularly crucial for industries that handle sensitive data or are at higher risk of cyber threats, such as security and infrastructure inspection.
While typically associated with transportation and logistics, inland marine insurance is valuable for drone operators because it covers equipment in transit or while stored off-site. This can include damage or loss from accidents during transportation, theft, or unexpected events in remote locations. This coverage is ideal for businesses that travel frequently to operate drones in different locations.
For companies that rely heavily on drone operations, business interruption insurance helps cover lost income if a covered incident, such as theft or a major accident, leaves your equipment unusable. This coverage can bridge financial gaps while repairs or replacements are being arranged, ensuring that an unexpected event doesn’t impact your revenue stream.
Medical payments coverage provides support for minor injuries resulting from drone operations, even if no party is at fault. This can help cover immediate medical expenses if someone is accidentally injured by your drone, helping you manage risks related to public safety and legal claims.
Before any commercial flight, make sure you fully understand the limitations and allowances under Part 107. The FAA provides resources to help with this, including a user identification tool to confirm if Part 107 fits your intended use. Some situations may require a waiver or additional permissions.
Operations over human beings
Flying at night beyond specified limits
Operating in restricted airspace
It’s your responsibility to know if your mission requires any special permissions.
To legally operate a commercial drone under Part 107, you need an FAA Remote Pilot Certificate. Here’s how to get certified:
Age and Language: You must be at least 16 years old and proficient in English.
Physical and Mental Fitness: You must be in a condition that ensures safe drone operation.
Knowledge Test: Pass a knowledge test covering FAA regulations, airspace, weather, drone performance, emergency procedures, and other essentials.
Study for the Test: Use FAA’s recommended study materials to prepare for the test. It covers critical areas for safe and legal operation.
Obtain an FAA Tracking Number (FTN): Create an account in the FAA’s Integrated Airman Certification and Rating Application (IACRA) to get your FTN.
Schedule and Take the Test: Register for your test at an FAA-approved Knowledge Testing Center.
Complete FAA Form 8710-13: After passing, complete this form through the IACRA system to apply for your Remote Pilot Certificate.
Pro Tip: Prepare thoroughly for the knowledge test, as a good understanding of the rules will make your operations safer and more compliant.
All commercial drones weighing over 0.55 pounds must be registered with the FAA. Here’s how:
Fee and Validity: Registration costs $5 and is valid for three years.
FAADroneZone: Create an account, select “Fly sUAS under Part 107,” and register your drone.
Mark Your Drone: After registering, label your drone with its unique registration number, ensuring easy identification if it’s lost or stolen.
Starting September 2023, drones needing FAA registration must also have Remote ID capability, transmitting key information such as location and operator ID to comply with the FAA’s safety and security standards.
As the Pilot in Command (PIC), you are legally responsible for the operation of the small unmanned aircraft. The Pilot in Command ensures that the mission adheres to all Part 107 guidelines, including:
Confirming that the airspace is safe for operations
Monitoring weather conditions
Ensure that all operations are safe and within regulatory boundaries, as the Pilot in Command is accountable for any deviations or incidents.
Certain operations under Part 107 may require waivers, such as:
Operating over densely populated areas
Night operations beyond the specified conditions
Multiple drone operations
Consult the FAA’s waiver portal to apply for any necessary permissions and ensure your waiver requests are detailed and accurate to avoid processing delays.
As the Pilot in Command (PIC), it’s your responsibility to ensure compliance and safety during operations:
Airspace and Visibility: Pilot in Command should keep flights within your visual line of sight or use a visual observer.
Daylight and Twilight Operations: Fly during daylight or twilight (30 minutes before sunrise to 30 minutes after sunset) with anti-collision lighting.
Altitude and Speed Limits: Maximum 400 feet altitude and 100 mph speed.
Avoid Airports: To avoid interference with manned aircraft, fly well away from airports unless you have specific authorization.
Payloads: External loads must be securely attached and under the maximum weight limit of 55 pounds, including drone and load.
Avoid Airport Vicinity: Drones should steer clear of airports unless you have specific authorization, as manned aircraft have limited ability to detect drones in flight.
Continuous Learning: Stay informed on the latest FAA updates, especially if regulations change or your operational needs expand.
Practice Responsible Flying: Always yield to manned aircraft, keep your drone in sight, and avoid flying near people unless specifically allowed.
Drone Safety Check: Perform pre-flight checks, including a visual inspection of the drone and control systems.
Privacy: Although the FAA doesn’t regulate data collection, always respect privacy laws when capturing images or data.
For a quick reference:
Part 107 Operations: The regulatory framework for commercial drones.
Pilot in Command: The responsible person overseeing each flight.
Remote Pilot Certificate: Certification needed to legally fly a drone for work.
FAA-Certified Drone Pilot: A pilot who has met FAA testing and certification requirements.
Unmanned Aircraft: Drones or unmanned aircraft without a pilot on board, regulated under Part 107.
Ready to Get Started? If you’re prepared to get certified or need help with the certification process, reach out to us for guidance on operating drones safely and successfully within FAA guidelines.
Get an FAA Tracking Number (FTN): Register on the IACRA website and obtain your FTN.
Pass the Knowledge Test: Schedule and complete the test through PSI. With a high pass rate, this test ensures drone operators meet FAA standards which you can also find in the FAA website.
Apply for Certification: Once passed, submit your application via IACRA. Expect around 7-10 days for a temporary certificate, as TSA completes a background check.
Permanent Certificate: Issued by mail within 2 months, allowing commercial drone operations once received.
Get an FAA Tracking Number (FTN): Register on the IACRA website and obtain your FTN.
Pass the Knowledge Test: Schedule and complete the test through PSI. With a high pass rate, this test ensures drone operators meet FAA standards which you can also find in the FAA website.
Apply for Certification: Once passed, submit your application via IACRA. Expect around 7-10 days for a temporary certificate, as TSA completes a background check.
Permanent Certificate: Issued by mail within 2 months, allowing commercial drone operations once received.
The FAA issues a temporary remote pilot certificate to reduce the wait for a new remote pilot to legally operate after passing the initial aeronautic knowledge test. The additional time ensures thorough background checks and processing before the issuance of the permanent certificate.
Temporary Remote Pilot Certificate:
Granted within 7-10 days after you pass the initial aeronautical knowledge test and submit your application.
Valid for 120 days.
Allows immediate drone operation as a certified remote pilot for commercial use while awaiting the permanent certificate.
Full Remote Pilot Certificate (FAA Airman Certificate):
Mailed to you typically within 1-2 months after receiving the temporary certificate.
No expiration but requires recurrent training every 24 months to maintain validity.
FAA Part 107 is a set of regulations that allows commercial drone operations, defining the safety rules and certification requirements for flying small unmanned aircraft under 55 pounds.
This is the certificate you need to operate a commercial drone legally. It shows that you’ve passed the FAA’s aeronautical knowledge test and meet the requirements to fly a drone for business purposes.
The PIC is the person responsible for all safety and regulatory compliance during a drone operation. They ensure that the drone is flown safely and within the boundaries of Part 107.
Waivers are required for operations beyond typical Part 107 limits, such as flying over people, at night, or beyond visual line of sight. The FAA reviews waiver applications and grants them if they meet safety standards.
While insurance is not required by the FAA, it’s often a smart choice to protect against potential liabilities. Many commercial clients may also require proof of insurance.
All registered drones must have Remote ID, broadcasting the drone’s location and other information during flight. This helps maintain airspace security and safety.
The FAA’s website offers detailed guidance, as well as their B4UFLY app for mobile devices, which provides location-based airspace restrictions.
Usually 7-10 days; it might be quicker but varies with demand.
Contact the FAA to track or extend your temporary certificate’s validity. This process has become faster, but wait times can still vary based on demand, especially during peak seasons.
Ensuring your business has the right insurance is essential for a successful FAR Part 107 operation. From liability protection to equipment coverage, these policies safeguard your company from unexpected setbacks and give you confidence to focus on expanding your drone services. Partnering with an experienced insurance provider can help you tailor coverage to match your specific business needs and regulatory requirements, keeping your operations safe and profitable.
