How Crash Investigations Are Handled - From Claim to Repair

Quick TL;DR

• After a crash the claim process is evidence-driven: preserve telemetry and media, notify insurer, and do not admit fault.

• The adjuster builds a timeline, inspects damage, and decides repair versus total loss based on repair cost, agreed value, and salvage.

• You win claims when you document everything: raw logs, SD cards, preflight checklists, maintenance history, and signed job paperwork.

How Crash Investigations Are Handled - From Claim to Repair

Executive summary

A drone crash triggers two parallel processes: an operational investigation and an insurance claim. The investigation determines what happened and why. 

The claim process decides what gets paid, who pays, and whether the drone is repairable or a total loss.

This article gives a field-ready playbook: immediate actions at the scene, what evidence to collect, how adjusters evaluate repair versus total loss, the repair workflow, salvage options, appeal steps if the carrier denies, and simple practices to speed payment and keep your business flying.

The first 30 minutes - what you must do immediately

These actions preserve your right to a claim and stop avoidable denials.

1. Secure the scene

   • Keep people away. If public safety is an issue, call emergency services first.

2. Preserve data media

   • Remove the SD card and any removable storage. Do not play or edit files. Put originals in a safe, labeled envelope. Make one forensic copy only after creating a hash if you can.

3. Export raw telemetry now

   • Export flight logs in the drone’s native format, not screenshots. Save to two separate storage locations.

4. Photograph everything

   • Wide shot of the scene, close-ups of damage, serial numbers, prop strikes, engine or motor damage, gimbal and payload condition, and any ground damage. Time-stamp photos if your camera allows.

5. Collect witness details

   • Names, phone numbers, and short signed statements if possible. Get client contact if on a job.

6. Do not alter the aircraft

   • Do not repair or disassemble except to prevent further loss to property or persons. Document any temporary moves with photos.

7. Notify insurer and broker

   • Call your broker and insurer per policy notice rules. Follow up in writing with an initial claim email and attach basic info: date/time, location, make/model, serial, pilot, policy number.

Do not post details or apologize on social media. Silence beats speculation.

24 to 72 hours - build the claim file

Adjusters expect a compact, indexed evidence package. Assemble this fast.

Required documents to collect

• Raw telemetry exports and a simple timeline summary.

• Original SD card files and a file inventory list.

• Preflight checklist and signed client job sheet.

• Pilot certificate and named pilot roster.

• Maintenance and repair logs for the past 12 months.

• Purchase receipts and serial numbers.

• Weather snapshot and NOTAMs for the time of flight.

• Photos of launch and landing points and damage.

• Witness statements and contact details.

• Any permits, waivers, or venue COIs.

Create a single folder labeled with the claim number and keep an unmodified copy of every original file.

How the adjuster investigates

The adjuster’s goal is to determine coverage and liability. Expect these steps:

1. Initial triage

   • Confirm policy applicability, named insured, and listed pilots. Check for obvious exclusion triggers like operations in violation of law or unlisted pilots.

2. Document review

   • The adjuster checks telemetry, maintenance history, and job paperwork to reconstruct the flight profile and find causal factors.

3. Physical inspection

   • Adjuster or a contracted drone technician inspects the airframe, motors, ESCs, gimbal, and payload. They may request serial numbers or run bench tests.

4. Third-party reports

   • Noise, witness statements, and any police, emergency, or NOTAM records are gathered.

5. Estimate and repair vs total loss decision

   • Adjuster gets repair estimates from approved repair shops. They compare repair costs to agreed value, market value, and salvage potential.

6. Decision and payment pathway

   • If covered and repairable, insurer authorizes repair at approved shops or reimbursements. If total loss, insurer pays agreed value or ACV minus deductible, or offers salvage.

Be responsive. Slow answers delay payments.

Repair versus total loss - how they decide

This is the core financial decision.

Repair is chosen when:

• Repair estimate is materially lower than the drone’s agreed value or replacement cost.

• Parts are available and repair time is reasonable for business continuity.

• Structural integrity can be restored to OEM standards.

Total loss is chosen when:

• Repair cost plus salvage handling exceeds a threshold. Common industry rules:

  • If repair cost is greater than 60 to 75 percent of agreed value or replacement cost, carriers often declare total loss. Exact threshold varies by insurer and policy terms.

• Key structural components, flight control modules, or proprietary flight computers are destroyed and either unavailable or cost-prohibitive to replace.

• Payloads with agreed-value are destroyed and replacement cost plus labor exceeds practical repair value.

Example math

• Drone agreed value: $10,000. Deductible: $500.

• Repair estimate: $6,800. Repair percentage = 68% of agreed value. Some carriers may total this drone. If insurer totals, payout = $10,000 - $500 deductible = $9,500, less salvage value if insurer buys salvage back.

Always check policy wording and salvage terms. Some policies include salvage value deduction in paid amount; others let the insurer keep salvage.

Repair workflow - practical steps

If insurer approves repair, follow this workflow to close the claim quickly.

1. Use approved repair shop

   • Insurers prefer their approved shops. If you use a non-approved shop, preapprove costs with adjuster.

2. Get detailed repair estimate

   • Line-item parts, labor hours, and lead times. Include OEM part numbers and cost of shipping.

3. Approve and repair

   • Once adjuster signs off, schedule repairs. Keep copies of all invoices and part receipts.

4. Post-repair flight test and report

   • The repair shop or pilot must perform a flight test. Document telemetry and video of the test. Submit test report to adjuster.

5. Final closing

   • Adjuster issues payment or direct shop invoice settlement. If dispute arises, request an independent appraisal.

Keep communications in writing and indexed into the claim folder.

Read: BVLOS and Insurance - What Underwriters Ask For

Salvage and recoveries

If insurer totals the drone, several options follow:

• Insurer retains salvage

  • The insurer may keep the wreckage and sell salvage to recover costs. This reduces the payout burden on the insurer.

• You buy back salvage

  • Some operators buy salvage back at a reduced price to try repair later. If you plan this, be realistic about hidden damage.

• Sell salvage for parts

  • If insurer lets you keep wreckage, sell usable parts on marketplaces and offset loss.

If you accept salvage buyback, ensure you obtain a written chain-of-custody and understand that repairing bought-back salvage may preclude future coverage.

When the insurer denies the claim

If denied, do not panic. Follow this path.

1. Request denial in writing

   • Ask insurer to cite exact policy clauses and supporting facts.

2. Request the claim file

   • You are entitled to the file in many jurisdictions. It contains adjuster notes and third-party reports.

3. Build an appeal packet

   • Address the denial reason with new or clearer evidence. Show compliance, telemetry proof, or repair quotes.

4. Use broker advocacy

   • Good brokers can escalate internally. Let them push for review.

5. Regulator and legal steps

   • If denial looks unjust, file a complaint with the state insurance regulator. Consider counsel for large losses.

Always measure the cost of litigation against expected recovery.

Preventing future headaches - operational fixes

• Keep preflight checklists with pilot initials and timestamps for each job.

• Maintain organized maintenance logs and parts replacement history.

• Export and archive telemetry after every flight in a standard folder structure labeled by date and job.

• Photograph launch and landing zone every job.

• Have a client job sheet and signed property release for commercial work.

• Schedule payloads and agree values for expensive cameras or LiDAR.

These simple routines stop 80 percent of procedural denials.

Sample quick claim email you can send to insurer

Subject: Notice of Loss - Claim Notification - Policy #[policy number]

Date: [mm/dd/yyyy]

Insured: [Your name / company]

Policy No: [policy number]

Claim: Drone crash - [make/model], serial [SN]

Date/time of loss: [mm/dd/yyyy hh:mm local]

Location: [address or coordinates]

Pilot: [name, Part 107 if applicable]

Brief facts: [one sentence summary]

Immediate actions taken: removed SD card, exported telemetry, photographed scene, notified broker.

Attached: photos, pilot certificate, purchase invoice, initial telemetry export (file: telemetry_yyyymmdd.raw)

Please confirm receipt and claim number and advise the next steps.

Regards,

[Your name, phone, email]

Final takeaway

Crash investigations are evidence wars. If you build an airtight file fast, insurers will almost always pay fairly and quickly. 

If you delay, destroy evidence, or fail to follow policy notice rules, you risk denial. Put simple processes in place now: export telemetry, preserve media, use checklists, and keep maintenance logs. 

Insurance pays when you make it easy for adjusters to verify a covered loss.

Read: Insurance Considerations for Drone Data Breaches & Cyber Liability

Author

Svetlana - I am a Drone Insurance Writer and Researcher. I write about drone risk management and insurance for US pilots. Not a licensed broker. For policy advices contact a licensed insurance professional.