Surprised the airlines don't use indemnification clauses in their non-rev policies. Easy enough to put into policy the concept that the employee and / or the buddy pass rider are jointly and individually responsible to reimburse the airline for any expense associated with the defense of the Company for any action brought by, or as a direct result, of the pass rider.

With this policy, if the pass rider sues, the airline tenders the lawsuit right back to the pass rider and his friend demanding they hire Counsel, defend the airline and pay the costs including that of any judgement the pass rider might be successful in obtaining. This would could be broadly worded to include the cost of any advertising injury, slander or libel.

Put the responsibility right back where it belongs.