CFI Insurance for CFI renewal
 

I had an individual approach me who wants to get his CFI reinstated after he let it lapse. He flys heavy aircraft internationally but his kids want to get their PPLs and he wants to be the instructor. He got his original CFI back in the 70s and let it lapse I assume when he went to the airlines. Needless to say, he will need considerable amount of ground discussion and probably some flight training. He owns his own 172.

What, if any, insurance do I need? Since it is his aircraft who would the liability fall on if something were to happen?

Also, any one have a good going rate for such instruction? This is outside of my current salaried CFI job so I don't know good hourly rates. Considering this requires a higher level of CFI experience, I was thinking $40/hour.

Thanks!

I think you just need to be a named pilot on his insurance policy that way if something happens they cannot come after you. Should be a simple process for the owner to do this. The ins company will probably require an experience form from you which will break down your time in types. I think am acceptable rate for instruction would be $30-40 an hour. I guess it would depend on how often he wants to fly. Fly more often = lower hourly rate. My two cents.

As a new CFI, here is what I have learned while researching aircraft insurance for CFIs.

Most insurance policies are written to only cover the "named insured", in this case your student (owner of the airplane). As a CFI, you can request to be added onto the policy as a named and approved pilot. This would mean that the insurance coverage is extended to you (liability for bodily/property and aircraft damage). A trap I have heard is some policies will not allow a named and approved pilot if they are conducting a commercial operation (flight instruction included). I believe the best thing to do in this situation is call the company and have a written record that you are added to the policy and that the coverage extends to flight instruction.

The second thing I have run across is a "waiver of subrogation". Depending on the aircraft owner's policy, the insurance company usually reserves the right to reclaim any losses. In short, this means they may come after you if you cause any damage/claims, even if you are a named and approved pilot. (Google "subrogation"). Some companies will issue a "waiver of subrogation" meaning they forfeit their right to try and recover from you.

This article from NAFI is pretty helpful. Some CFIs also opt for their own independent non-owned liability coverage for bodily/property and aircraft damage.

What You Don't Know Can Hurt You!

And I am by no means an insurance expert, just a CFI who has done some reading! I would say consult with an insurance expert before deciding what you do.

TOGA9's post is exactly on point.

There are policies that will cover the CFI for flight instruction in an owner's aircraft, but without a special endorsement doing so, the typical policy does not cover an instructor giving instruction for hire.

"Named" is one of the more confusing pieces. A lot of people =think= it means the CFI is covered when giving instruction. It doesn't.

If you do get "on" the owner's policy in some way, you need to sit down and have someone who understands aviation policies ensure that you got what you think you did. Unlike auto insurance, aviation insurance is neither mandatory nor standardized.

A CFI's best bet is always his own policy.

"Who will the liability fall upon?" It depends. The aircraft didn't do it by itself, either you or the "student" did it. In most cases involving a certificated pilot and an instructor, the best answer is probably "both."

Going rate in our area seems to be $50. So here is a thought, instead of getting a re-instated CFI, he could instead earn is CFII to reinstate is CFI. That might be almost as much work and have the added benefit of something shiny and additional.

I would want to be named on his A/C insurance and also carry my own CFI insurance through Avemco (agree with above, watch for exclusions). There is a NAFI discount on Avemco.

Not sure where you are located, but an add on to what others said-- watch for location carve-outs in your insurance. Not sure where you are instructing but I saw an Alaska exclusion was added to my policy this year.