Drone insurance acts like any other insurance policy. If you lose your drone or get into an accident, the company will cover your damage and liability costs to a certain extent. Insurance companies want pilots to have operating manuals, maintenance logs, and a record of parts or add-ons they’ve purchased. These items, along with proof of training or of planning to get trained, indicate that you’re a safe pilot or want to become one.
This lowers the amount of risk you pose to your drone, other people, inanimate objects, and to the insurance company’s costs. The safer and more prepared you are, the more likely you’ll be to obtain insurance and get a desirable rate (similar to car insurance).