Indoor Drone Operations Insurance (Warehouses & Stadiums)

Quick TL;DR

• Indoor drone work is a different risk class. You are not fighting weather, you are fighting people, valuables, fragile infrastructure, and tight legal liabilities.

• Core cover you need: commercial liability, hull with scheduled payloads, inland marine for transit, and cyber if you handle stored data. For stadiums add higher limits and event liability; for warehouses add employer and property coordination.

• Underwriters care about procedures not promises. Give them SOPs for confined-space ops, a spotter program, maintenance logs, and proof of pilot proficiency. That is how you get reasonable premiums and survive a claim.

Note: this article focuses on operations inside the United States and regulatory interactions with the Federal Aviation Administration.

Indoor Drone Operations Insurance (Warehouses & Stadiums)

Why indoor is not "easier" insurance-wise

Many pilots assume indoor flights are safer because there is no wind or airspace. That is false. Indoor hazards include:

• People density (crowds, staff) that raises bodily injury exposure.

• Fragile or expensive assets (scoreboards, lighting rigs, displays, inventory racks).

• Limited escape routes for aircraft after failures.

• Complex contractor ecosystems where contractual obligations and indemnities multiply risk.

• Data sensitivity: stadium or warehouse imagery may reveal security details or inventory counts.

Insurers see indoor operations as high-consequence, low-frequency events. One headline accident at a stadium can cost millions. Underwriters price for that.

The insurance stack you must assemble

1. Commercial general liability (CGL) - foundation

   • Minimum typical limits for stadium events: $2,000,000 per occurrence, often more. For warehouse ops with business customers, $1,000,000 may be accepted but verify client COI requirements. Ask for additional insured wording for venue or client.

2. Hull insurance plus payload scheduling

   • Schedule every camera, gimbal, LiDAR unit, and SSD with serial numbers and invoices. For high-value sensors buy agreed-value. Indoor crashes often destroy payloads and airframes together.

3. Inland marine / theft-in-transit

   • Gear moves frequently between sites. This protects against theft or damage while in transit or storage.

4. Event liability and non-owned participant coverage (stadiums)

   • If flying over attendees or during an event, you may need event-specific liability, participant liability, and contingent coverage for vendors.

5. Professional liability (E&O) - optional but recommended for surveying or stocktaking services

   • If your indoor work produces reports, counts, or deliverables that clients rely on, E&O protects deployment-related errors.

6. Cyber / data liability

   • If imagery or inventory data is stored or transferred, cyber covers breach response, notification, and remediation costs.

7. Workers compensation

• If you employ pilots or crew on site, state laws require workers comp.

Read: Drone Insurance for Mapping & Surveying Companies

Underwriting questions you must answer up front

When you approach a broker, have these items ready. They shorten quoting time and reduce surprises.

• Mission type: inspection, inventory counts, entertainment, or testing.

• Venue type: warehouse (racking, forklifts) or stadium (crowds, rigging).

• Crowd presence: number of people, ticketed event or closed access.

• Typical flight altitudes and distances from people.

• Pilot roster and documented recurrent training.

• SOPs for confined-space operations, emergency recovery, and payload securement.

• Maintenance logs and firmware update records.

• Data handling and encryption policies for SSDs and cloud transfers.

If you cannot supply these, expect higher premiums and restrictive endorsements.

Operational controls underwriters love

If you implement these and show the evidence, insurers will reward you.

• Safety management system (SMS) with incident reporting and corrective actions.

• Mandatory spotter(s) and a defined exclusion zone for people during flight segments. For stadiums, enforce a "no-crowd" rehearsal and run look-back checks.

• Preflight and postflight checklists signed and time-stamped. Store them per job.

• Payload tethering or secondary retention for flights near people when practical.

• Redundant power and redundant controls for critical ops.

• Chain-of-custody for SSDs and secure transfer protocols. Hash raw files and retain originals.

• Insurance-aware contracts: limit indemnities, require client releases for controlled environments, and avoid unlimited waivers.

Document these and include them in your broker submission.

Special rules and traps for stadiums

1. Crowds and participants

   • Many venues will never permit flights over seated crowds without top-tier waivers and insurance. If you must fly during an event, expect stringent limits, safety rigging, and higher required limits.

2. Rigging and set pieces

   • Drones can hit lighting rigs or pyrotechnics; insurers treat these as high-loss exposures. Produce a risk assessment and integration plan with the production's rigging supervisor.

3. Vendor and venue COI requirements

   • Stadiums and promoters have precise COI language. Get the exact wording early and confirm your broker can produce it before you sign any contract.

4. Emergency response coordination

   • Venues want written recovery plans and clear roles for medics and security. Show proof of coordination to get better terms.

Special rules and traps for warehouses

1. Forklifts and moving equipment

   • Operations near moving machinery increase collision risk. Standard approach: coordinate with facility ops, mark "no-fly" corridors, and run flights during low-activity windows.

2. Inventory value exposure

   • High-value inventory (electronics, pharmaceuticals) creates third-party property exposure. Insurers may require you to limit flight time near high-value racks or increase limits.

3. Data sensitivity - inventory counts

   • Providing inventory data creates E&O and cyber exposure. Encrypt and control access to transfer folders; buy cyber coverage if you store or transmit client data.

4. Insurance endorsements for logistics clients

   • Many logistics companies require specific hold-harmless and additional insured clauses. Have your broker pre-clear these.

Sample broker email (copy-paste) for indoor ops

Subject: Quote request - Indoor Operations (Warehouse/Stadium) - [Company Name]

Hi [Broker],

Please provide quotes and required endorsements for indoor UAS operations. Summary:

- Ops: [warehouse inventory inspection / stadium rehearsals / live event support]  

- Locations: [city, state], mostly indoor; occasional loading-dock exterior transit.  

- Crowd exposure: [none / controlled rehearsal only / limited spectators X number]  

- Fleet: [make/model, serials, payloads with invoices attached]  

- Pilots: [number], Part 107 certificated, attached training logs  

- Coverage requested: $1,000,000 to $5,000,000 liability options; hull scheduled with agreed-value on key payloads; inland marine; cyber $1,000,000 optional.  

- Attachments: SOP, preflight checklist template, sample COI wording required by venue.

Target bind date: [mm/dd/yyyy]

Thanks, [Name / contact]

Sample COI wording for venues

Certificate Holder: [Venue Name and address]

Insured: [Operator company]

Coverage: Commercial General Liability including Unmanned Aircraft Liability

Limit: $[limit] per occurrence / $[aggregate]

Additional Insured: [Venue/Promoter] as required by contract

Endorsement: Coverage applies to scheduled payloads listed on the attached schedule and to UAS operations conducted within the venue on dates [mm/dd/yyyy].

Note: This certificate does not amend or extend policy terms. Request binder language if specific waiver of subrogation or primary/noncontributory wording is required.

Always attach the payload schedule and SOP when you present the COI.

Real claim examples and how to prevent them

1. Drone tips from 20 feet and breaks display cases in a warehouse

   • Prevention: no-fly zones around high-value displays, rehearsals during non-business hours, spotter enforcement.

2. Drone loses power and lands on spectator during warm-up

   • Prevention: no flights over people without waiver, tethered test passes, multiple redundancy checks.

3. SSD with proprietary inventory data lost during transit

   • Prevention: encrypt SSDs, keep chain-of-custody, and use secure cloud uploads immediately after collection.

In claims, the difference between paid and denied is often documentation. Preserve logs, signed job sheets, and custody records.

Pricing themes and expectations

• Solo operator, closed-door warehouse inspection: $800 - $2,000 per year for basic liability and hull.

• Stadium rehearsal and low-spectator ops: $2,500 - $10,000+ depending on limits, payload value, and crowd exposure. Event-day coverage with high limits can be substantially more.

• Add cyber and inland marine for a few hundred to a few thousand extra depending on limits and data handling.

These are directional ranges; always get firm quotes with your manifest and SOPs.

Final advice

Indoor operations are a business decision, not a stunt. If you fly inside warehouses or stadiums, treat insurance and safety as deliverables. 

Buy the right limits, schedule your payloads, document your SOPs, and get written COI confirmations before you accept work.

If a venue asks for more than you have, do not negotiate verbally. Get the binder language in writing. That is how you avoid the single claim that can kill your business.

Read: Media & Film Drone Insurance - Stunts, Crowds & Permits

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.