You are a luck man Fred. No liability claims or settlements since
1962! Wow, OK, my experience is a bit different. We had a settlement
in just the 18 months I worked at the now defunct school in Northern
California. The instructor wasn't personally sued because he (like me
at that time) didn't have a dime to his name. The action wasn't
brought by the seriously injured student but by a property owner who's
show horses and structures were injured/damaged in the crash.
Unfortunately, legal actions can and do happen.

The personal liability faced by an instructor varies based on where
they are instructing. If you are hired as a CFIG as an employee of the
flight school, you should be covered by the flight school's liability
policy. However, you are subject to the limits and terms of that
policy. Typical flight school's liability is capped to $1 or $2
million per occurrence. Legal defense coverage can be just a few
thousand dollars per occurrence. Frankly, for a number of experienced
soaring pilots, these limits won't begin to cover their personal net
worth.

Some schools "hire" their instructors not as employees but as
independent contractors. Unless they are specifically named as
"additional insureds" by the school, the instructor will not be
covered by the school's liability policy. Even if the instructor is
named as additional insureds on the school's policy, unless you are
specifically covered by a waiver of subrogation, the school's
insurance company could come after you in the event of a loss.

If you are instructing for a club then your liability exposure and
insurance coverage could be all over the map. You should read the
club's policy in detail or speak with their agent to find out exactly
what insurance coverage you will and won't have.

Falcon Insurance and others offer Instructors Professional Liability
and Non-Owners coverage that instructors can purchase independently to
cover some of the gaps in liability coverage that may exist in a
school's policy or if the school "hires" it's instructors as
independent contractors. This coverage typically ranges from $400 to
$600 per year. This type of coverage is not a magic bullet but it may
help.

And yes, I admit that I limit my a very few of my activities based on
potential liability risk. Unfortunately, legal actions can and do
happen.

glider4