CFI Insurance

[Don Jones]

I have spent the last couple of hours on the phone trying to figure out what I need to be covered while instructing in a customer owned aircraft. Just being a named pilot on the policy only protects the owner and I could be subrogated against if something should happen. Since I am employeed at a flight school regular CFI insurance will NOT cover me! According to several sources, in order to be covered in a customer aircraft, the owner has to list the flight school as an additional insured with a waiver of subrogation(at an additional charge of course). If I was a freelancer it wouldn't be an issue, I would just purchase the insurance and be done with it. What do you guys do? Not teach in customer owned aircraft? Roll the dice?(not really an option for me) or simply make the owner add the school to the policy?

 

[KennyFlys]

You might try calling National Association of Flight Instructors.

www.nafinet.org

(920) 426-6801

 

[Dave Krall CFII]

It depends if you're gonna do enough CFIing to make it pay to buy the policy for yourself, which isn't that expensive. If it's that important to the owner to get instruction from you, then adding additional parties and paying is just part of the total cost. If instructing in owner planes is only a rare opportunity, then refer them to someone else that is ramped up for that niche of CFIing.

 

[bbchien]

I have a NAFI policy, it's through Falcon in Kerrville, Tx. (Global Aerospace). It's not a great policy, but it'll do. Be SURE to see the owner's binder naming you as an insured so that you don't get subrogated.

 

[Don Jones]

I have a NAFI policy, it's through Falcon in Kerrville, Tx. (Global Aerospace). It's not a great policy, but it'll do. Be SURE to see the owner's binder naming you as an insured so that you don't get subrogated.

Well, so far the only one which will cover me even though I am an employee is the one from NAFI.(Falcon) If I purchase one through AOPAIA which is AIG it specifically will not cover me since I am an employee. I will probably get the NAFI policy and keep moving since I have had several of these requests come up so far.

 

[Let'sgoflying!]

Next Don, ask what it takes to cover you for claims while flying the KingAir.
There are some things you just can get affordable coverage for.

 

[Don Jones]

Next Don, ask what it takes to cover you for claims while flying the KingAir.
There are some things you just can get affordable coverage for.

Ouch, hadn't thought about that. Well at least I won't be CFI'ing. Runs off wondering what 2 mil property damage liability and 2 mil bodily injury would cost
answer: with my level of experience, calculators don't go that high!!

 

[poadeleted20]

If you are an employee of the flight school, the flight school's policy should cover you (it's all about "vicarious liability" and absent a deliberate act, it's awfully hard for an employer to subrogate against an employee). Get a copy from your employer and have your attorney review it with you. If your employer refuses to provide a copy, contact the local department of labor for assistance. If your employer does not have such coverage, find somewhere else to work, because the potential for financial disaster for you in that case far exceeds the aircraft insurance issue.

OTOH, if the flight school says you are an independent contractor, you probably need your own (although you should still take a look at their policy as it may still cover you), but as an independent contractor, all the standard flight instructor policies will cover you (since you are not an "employee"). However, if they do claim you are an independent contractor, get legal advice from your attorney or the local department of labor to find out if that claim really does pass the "Right to Control and Direct Test" for employees versus independent contractors, as it is definitely to your advantage to be an employee, and many flight schools try to bend the rules on that point in order to save money by calling you an independent contractor.

 

[gibbons]

 

[colomtnflyer]

When I was teaching as an employee of a pilot center, if the student was making the arrangements thru the pilot center, then the company insurance covered me, even in a students aircraft (BFR, 90 day currency, regular training, etc). If I had made private arrangements, then I would have been on my own...

 

[Don Jones]

If you are an employee of the flight school, the flight school's policy should cover you (it's all about "vicarious liability" and absent a deliberate act, it's awfully hard for an employer to subrogate against an employee). Get a copy from your employer and have your attorney review it with you. If your employer refuses to provide a copy, contact the local department of labor for assistance. If your employer does not have such coverage, find somewhere else to work, because the potential for financial disaster for you in that case far exceeds the aircraft insurance issue.

OTOH, if the flight school says you are an independent contractor, you probably need your own (although you should still take a look at their policy as it may still cover you), but as an independent contractor, all the standard flight instructor policies will cover you (since you are not an "employee"). However, if they do claim you are an independent contractor, get legal advice from your attorney or the local department of labor to find out if that claim really does pass the "Right to Control and Direct Test" for employees versus independent contractors, as it is definitely to your advantage to be an employee, and many flight schools try to bend the rules on that point in order to save money by calling you an independent contractor.

The whole delima stems from the fact that the flight school does not have coverage for us to fly in customer owned aircraft. I am covered fine as long as it is in the schools aircraft. In order to add coverage to the schools policy for non-owned aircraft(customer owned) it was quoted at $1500 per insured instructor, which would not be economically viable at this point. Purchasing my own seems like the only alternative in order to be able give myself some protection and still be able to provide training to folks who own their own aircraft. The word is getting around and more and more people have been contacting me to provide training in their aircraft. At some point the school will add the coverage, it is just a matter of timing and economics.

 

[poadeleted20]

The whole delima stems from the fact that the flight school does not have coverage for us to fly in customer owned aircraft.

Then the school management is out of its business mind to allow its employees to fly in customer-owned aircraft, regardless of whether the individual instructor has coverage or not -- see "vicarious liability" in any legal dictionary.

BTW, this refusal of flight school insurers to cover such flying is becoming more prevalent, probably because of the school's lack of control over or knowledge about the material condition and documentary legality of non-school aircraft. In every case I know, the result is that the school simply refuses to allow its employees to instruct in non-school aircraft under the school's aegis. School instructors who want to do such instructing must do it on the side as an independent contractor to the owner, and not via the school. In that case, since you're not acting as a school employee, any regular CFI policy will cover you. However, if there's an accident, the owner's attorneys will, in search of deep pockets, sue everyone including the school, and let the courts sort it out. Therefore, to protect themselves from involvement in lawsuits over such flying (the defense of which can be expensive for the school even if they have their involvement dismissed during the process), some schools prohibit their employees from instructing outside the school, in which case it may not be possible for you to do that.

In order to add coverage to the schools policy for non-owned aircraft(customer owned) it was quoted at $1500 per insured instructor, which would not be economically viable at this point.

...which is why schools make the decision not to permit their employees in non-school aircraft.

Purchasing my own seems like the only alternative in order to be able give myself some protection and still be able to provide training to folks who own their own aircraft. The word is getting around and more and more people have been contacting me to provide training in their aircraft.

Then get your own insurance, instruct on the side (as an independent contractor, not through the school), and charge them enough to cover the cost of that insurance (amortized over the number of hours of such instructing you expect to do each year) plus a fair price for your time. Note that this insurance is a tax-deductible business expense, so you do get some break on the cost.

At some point the school will add the coverage, it is just a matter of timing and economics.

If so, you may just have to wait until the number of potential customers increases enough to push the school into making that happen.

 

[Crispin]

We do both. Basically, we have CFI/non-owned insurance and also get named on the owners' policies as additional insureds for the full limits of the owners' coverage and the insurance company also executes a waiver of subrogation. And, of course, you want the liability coverage as well.

If the client/insurance company doesn't like it, they can find someone else to teach them. Most of them not only don't mind, they expect it. And they know that their insureds are keeping proficient by getting instruction.