I was concerned about it as a CFI. I didn't have much back then either. After building up savings now I would not consider instructing any more at this point in my life. Even if you document everything the cost of a good lawyer is going to be tremendous.
Here is what I found as far as AOPA CFI insurance goes. IMO, the
coverage is a joke.
Benefits Summary for CFI Non Owner Insurance
As a CFI, you're covered for loss or occurrences arising from your professional liability during completed flight instruction services, flight reviews, or a check ride conducted by you in a non-owned aircraft.
- $3,000 Medical Payments coverage for each passenger including the insured
- $1,000 Personal Effects coverage
- $10,000 Search and Rescue expense coverage
- $10,000 Runway Foaming and Emergency expense coverage
- Legal defense costs are in addition to the limit of liability purchased.
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The NAFI insurance is quite a bit better (although I'm sure costs quite a bit more)...
Additional policy features and benefits for the NAFI CFI Insurance Program include*:
- Up to $5,000 in legal defense costs if the FAA or civil authority takes pilot certificate enforcement or civil penalty action against you
- Bodily injury coverage options up to $200,000 each person
- Options of up to $150,000 ADL limits
- Coverage for personal use of a non-owned aircraft
- Coverage for aircraft owner's loss of use claim
- Up to $1,000 No-Fault deductible coverage if ADL purchased
- Lower premiums offered for NAFI members holding a current NAFI Master CFI accreditation
- Coverage available in Alaska (additional charges apply)
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Read the fine print on them.
It appears as though neither protects against your own personal liability as far as getting sued through civil court goes though. That is where the high dollar awards are.
As a pilot at an airline I am mildly concerned about getting sued as well. Perhaps my fears are unfounded. But think of this scenario. We hit turbulence at altitude, passenger hurts ankle. Gets a lawyer:
As a lawyer, I would ask these questions:
Did you obtain information on known turbulence reports?
Did you obtain information on predicted turbulence?
Did the airline DX plan around these reports (in our FOM it states DX will, truth is they NEVER do)? As PIC why did you not ask for an alternate route? Never mind pretty much every where we got there exists only one way to get from A to B (preferred routes).
Personally, at my commuter, I don't know anyone who views the NOAA/FAA weather charts prior to starting the day. I'm sure a select few do, but most do not. I'm sure it's probably more prevalent at the major level, and I'd bet they also plan around known areas of turbulence.