Legal Question
 

Let's say I am an "independent" (a.k.a. "unemployed") CFI--which I am. Let's say I'm not incorporated--which I am not. Let's say someone uses me for instruction/BFR/whatever--they haven't, but they could. Is there any limit to my potential personal liability, if I've indorsed them or I'm flying with them, and they prang their aircraft or hurt someone?

Could I/should I have the customer/trainee sign something to the effect of releasing me from later liability? Is this reasonable, or am I paranoid?

Any info/experience appreciated.

Zach

You absolutely risk personal liability, and are certainly not paranoid to be concerned about it.

You really should consider some sort of professional liability insurance. NAFI offers a policy. Even if you can only afford the lowest liability limits, you will still receive legal defense, which is a major consideration. Even if you ultimately have no liability the legal costs of defending yourself can be enormous. And of course if you're an independent CFI the premium would be tax-deductible.

Be careful about CFI Non-owned policies, which provide coverage for aircraft damage but not professional liability.

It's really difficult in most states to disclaim or have someone waive professional liability. If you are thinking about doing this in lieu of having insurance coverage, I would consult an attorney in your state.

Bummer--I never thought about being afraid to go fly with someone for legal reasons (my *total* career is eight months as a CFI at an FBO and 20 years military.) The liability thing just dawned on me today...

Check out the NAFI video blog discussion that was done on this topic at Gold Seal Live

It may be helpful.

--Jason Blair
NAFI Executive Director

You definitely risk liability. You crash an airplane with a student on board you should expect that you will be held responsible. And being incorporated would not help.

But you might be a little paranoid if you worry about it too much and it keeps you from instructing. Understand the risk, evaluate your personal likely exposure, determine your insurance needs, figure out your personal risk tolerance (each of ours is different), and act accordingly. "Acting accordingly" includes not only insurance, but engaging in best practices to minimize your exposure.

For example: I gave a talk on instructors and insurance a few years ago. There were 20-30 instructors in the room, some of which had been teaching for years, most of whom I knew personally. I asked, "How many of you personally know someone who had a liability claim made against them." No hands went up.

I'm a bit of a veteran when it comes to CFI liability discussions online. My personal, anecdotal, and completely unscientific analysis (which means I rely on it but you can't) is that our liability as instructors are, in order of highest to lowest):
I've been running an on-line challenge for about 10 years now: Tell me about a real situation when a CFI was successfully sued because of something that happened when the CFI was not in the airplane. No urban legends allowed. No, "Well, I heard about this guy who was the third cousin of a nephew of my ex sister in law who..."

I've managed to collect a total of two solid references.

First is a case from 1958. A flight school was successfully sued when a student pilot took off with the control lock on.

The other: In response to my "challenge" someone mentioned (and I was able to verify) an NTSB determination of "impropy instruction" as a probable cause of an accident in which there was a fatality. I count it because it's highly likely that the CFI was sued or that his insurance settled (unless he was totally uncollectible).

So that's about it. Two real examples over the last 36 years.

I'm still collecting. Anyone here have one?

That does not mean it doesn't exist - just that the risk is probably smaller than most of us think is is.

Good points above. Some of the cheapest protections you can have for the "just in case" would be the AOPA legal services plan and CFI Insurance.

For the folks that rent out there, they have rental insurance(basically will help you cover the deductible[they are usually $5000+]) if you ever bent up a rental plane up.

Currently I carry the legal services and the AD&D insurance, and I have used the legal services plan during on one occasion. It's definately worth the price for any CFI or commercial pilot!

Understand, though, that AOPA Legal Services will not provide a defense in the case of a civil liability suit, just the FAA enforcement part.

Didn't even think about it that way, and that sucks. Civil suits are all about the lawyers in the end anyways!(99% of the time)

That's what liability insurance is for.

Not a bad thing to keep in mind: acting as an independent CFI is running a "real" business. And one where there are some risks to assess for both us and our students. We're not talking a paper route or a lemonade stand, but a business where we will be held to an adult standard of responsibility.

I do appreciate the inputs and comments. It is "overcome by events" in my own case--I'm headed to a Part 141 school.

I do have the AOPA coverage, but it's on my ATP license; perhaps I should get that adjusted.

Cheers