An app that lets you buy short-term drone insurance

Founder & CEO at Verifly Jay Bregman
John Phillips | Getty Images

With so much of the modern economy shifting to an on-demand mode, this was probably inevitable: On-demand insurance for your drone.

Mobile app Verifly does just that. For a price starting at $10, a user can get up to $1 million in liability coverage, and $10,000 for invasion of privacy coverage, for up to an hour.

The services lets you fly your drone without having to buy a long-term insurance plan, said founder and CEO Jay Bregman. Coverage prices depend on what risk factors are in the coverage area, including schools, stadiums, neighborhoods and other populated spaces.

"In our first version, we've enabled default options, but in the not-so-distant future you'll be able to see other options like larger coverage areas or you can buy a few hours at a time," he said.

Bregman also said that limiting the insurance to drones weighing 15 pounds or less keeps the coverage consistent, as drones over that weight are in a different risk category. He said the company is looking to cover heavier drones in the future.

Verifly does not cover damage to a drone, its accessories or its cargo. Nor does it cover operators who fly their equipment indoors, during organized races or above 400 feet.

The company currently operates in 42 states, but Bregman said it will have nationwide coverage by the end of the year.

The Federal Aviation Administration approved regulations for the use of drones in June and those rules will go into effect by the end of August. According to the FAA, the regulations are expected to bring more than $82 billion for the U.S. economy — which is great news for drones users and Verifly.

"I think it's going to be the best thing that ever happened to us," Bregman said of the FAA regulations.

He said his interest in drones came after he left his previous company and wanted to get back into old hobbies.

"One of the things that I recognized just by flying these things around was how much more powerful they were than anything that had come before them," Bregman said. "One of the things that really bugged me was the question of risk. We started to look at that problem and discovered that really what the market needed was a brand-new type of insurance fabric."

Verifly is available in the App Store and on Google Play.