CFI innsurance

[Bernoulli]

I am working on my CFI and I will be working independantly. I was wondering if any of you CFI's who have assets worth protecting ( like a house) have ever bought CFI insurance. If so, how much did it cost you and what does it cover? Is it like renter's insurance? Do you have to get both CFI and renter's insurance to be protected?
Thanks in advance for the replies.

 

[midlifeflyer]

CFI insurance is essentially non-owned aircraft insurance (sometimes called renter's insurance although it covers much more) with a rider that covers your CFI liability exposure

The cost runs about $100 more than the equivalent non-owner policy.

An excellent version is the program offered through NAFI, although I think one is also available through AOPA and I hear that AVEMCO is returning to the field.

 

[nosehair]

Don't do it! The more CFI's who have insurance, the more that CFI insurance will become a feeding ground for lawyer sharks. A house isn't worth coming after. Yes, if you're really rich, then I can't relate, but DOCUMENTATION is the key to keeping the lawyers at bay. As long as you have DOCUMENTED all the training required by regulation, then the lawyers have nothing to come after. Train well, and document well. Log all the ground and flight training as it is written in the certification regulations. You are safe.

 

[JRSLim]

Not sure

Don't do it! The more CFI's who have insurance, the more that CFI insurance will become a feeding ground for lawyer sharks. A house isn't worth coming after. Yes, if you're really rich, then I can't relate, but DOCUMENTATION is the key to keeping the lawyers at bay. As long as you have DOCUMENTED all the training required by regulation, then the lawyers have nothing to come after. Train well, and document well. Log all the ground and flight training as it is written in the certification regulations. You are safe.

I've been trying to get as much info on this as possible since i am in the same boat as Bernoulli. What you say makes sense, but I am still leary of running without it. Even if everything is documented correctly, I still worry about how things could be twisted around you. If an extra $100 a year is going to help, then its worth it.


While were here, let me ask this:
all insurance applications ask about any previous incidents/accidents. If a person wa sinvolved in a training incident (i.e. bent wing on second solo), is this worth mentioning (since it was training and not a post certificate mistake)?

 

[midlifeflyer]

Re: Not sure

I've been trying to get as much info on this as possible since i am in the same boat as Bernoulli. What you say makes sense,

FWIW, no it doesn't. If nothing else, some of these policies include certificate action insurance also - something you =will= face (at least an inquiry) if there is an accident that involves a student. Nice to have somone on your side.

While were here, let me ask this:
all insurance applications ask about any previous incidents/accidents. If a person was not involved in a training incident (i.e. bent wing on second solo), is this worth mentioning (since it was training and not a post certificate mistake)?

I would report it. Couple of reasons.

First, they generally won't deny coverage based on something that happened some years ago. Some applications will even limit the question to the past 5 years. Second, even if in the relevant time frame, the existence of an accident involving damage to the aircraft like the one you mention usually won't result in the denial of coverage. Third, intentionally failing to disclose something legitimately asked for can result in an attempt to deny coverage =after= you need it based on misrepresentations in the policy. The last thing you want is an accident that results in a lawsuit or certificate action and having to fight with your insurance company at the same time.

 

[bobbysamd]

CFI Insurance

I think what you're driving at is whether to obtain professional liability insurance. I don't know of any vendors or producers of such policies except for NAFI, but I'm sure others here know.

Among other things, a professional liability policy should include a legal defense in case you're ever sued. Compare it to automobile insurance, which protects you against bodily injury claims and provides a legal defense against those claims. Loss of license protection would also be nice.

Finally, I cannot agree with the comments above about not getting insurance. The purpose of insurance is twofold: (1) to protect your assets against claims and (2) to interpose an entity between a claimant and you. You can have documentation up the ying-yang but you very well may need the expertise of a lawyer (shark) to present it properly. I know what I'm talking about; I work for a plaintiffs' attorney. Dealing with insurance defense lawyers is part and parcel of our practice, and I see their work. Most of the defense lawyers we work with are very competent attorneys. Not having professional liability insurance is exposing yourself to risk.

 

[Toy Soldier]

Quote from NAFI webpage
The NAFI Instructors' and Master CFI Insurance Plan.

One of the many benefits arising out of our affiliation with EAA is the NAFI Instructors' and master CFI Insurance Plan. Underwritten through Global Aviation Underwriters, Inc., and the plan offers liability protection for bodily injury and property damage not only while you are giving dual flight instruction, but also after instruction has been given. In addition, the NAFI plan provides coverage for check-rides by designated examiners (NAFI members only). This exclusive coverage for NAFI members applies as long as your insurance policy is in force.

In addition, the policy provides automatic coverage up to $5,000 for the cost of legal defense for a pilot certificate enforcement or civil penalty action taken by the FAA against a NAFI member. This coverage applies even if there has not been a recorded accident or incident.

As a NAFI member, you can also purchase physical damage liability coverage for the aircraft in which you are instructing.

As a Master CFI, you receive deeply discounted premiums in recognition of your professional status.

Call Falcon Insurance Agency today at 866.243.NAFI (866.243.6234) or visit www.falconinsurance.com.

As the ad mentions, you get DEEPLY DISCOUNTED rates for being a Nafi Master CFI. I save hundreds of dollars through this program.