NYC Drone Permit Insurance Requirements: $2M / $4M (2026)

Insurance is the most technically demanding part of an NYC drone permit application and a leading cause of denials. The standards are codified in 38 RCNY § 24-06 and are non-negotiable. This guide explains exactly what coverage you need and why an ordinary policy will not work. MmowW does not endorse any specific insurer — verify terms with your insurer and legal counsel.

The Core Numbers: $2M / $4M

The permit requires aviation liability coverage of at least $2,000,000 per occurrence and $4,000,000 aggregate, written on an occurrence basis (not claims-made). The limits must apply exclusively to operations conducted under your Chapter 24 permit, and the $2M/$4M limits may be reached through a combination of primary and excess policies.

Two Policies, Not One

You must maintain two coverage types continuously throughout the permit term:

This pairing is why a single general policy is insufficient — the dedicated UAS coverage must name each aircraft on your permit.

The City of New York as Additional Insured

The City of New York, together with its officials and employees, must be named as an Additional Insured on a primary and non-contributory basis for claims arising from operations under the permit. The endorsement must be at least as broad as the most recent editions of ISO Forms CG 20 26 (ongoing operations) and CG 20 37 (completed operations). Per NYPD guidance, the Additional Insured address is City of New York, 1 Police Plaza, New York, New York, 10038.

Scope and Insurer Rating

The coverage must extend to owned and non-owned unmanned aircraft across every phase — pre-take-off, take-off, in-flight, landing, and post-landing — and must include Bodily Injury, Property Damage, Personal Injury, Invasion of Privacy, and Trespass. The issuing insurer must hold at least one of: A.M. Best A- / VII, Standard & Poor's A, Moody's A3, or Fitch A-.

What You Must Submit

• A Certificate of Insurance listing the CGL and Drone/UAS policies, the minimum limits, and the specific endorsement language naming the City of New York as Additional Insured
• The NYPD-prescribed "Certification by Insurance Broker or Agent" form, OR certified copies of all policies (the NYPD or NYC Law Department may request certified copies at any time)
• Workers' Compensation and Disability/Paid Family Leave proof where required by law, or an attestation of exemption on an approved form

Why Standard Policies Fail

Homeowners, renters, and ordinary general liability policies do not satisfy these requirements — they lack the dedicated UAS coverage, the City-as-Additional-Insured endorsements, and often the occurrence basis or limits. Common denial triggers include a certificate that omits "City of New York," limits below $2M/$4M, a claims-made rather than occurrence policy, a missing CGL component, or an insurer below the rating threshold. Obtain a dedicated UAS/drone aviation policy and have your broker confirm every element before you apply.