866-806-6156 (9 am - 5pm ET)
NAFI Insurance Check-Outs – September 2005

Teach Them Well - How Much Do You Know About Non-Owners Insuranceè

By Bob Mackey, Vice President, Falcon Insurance Agency, Inc.

As a flight instructor, students depend on your guidance in all areas of their flight training experience. In some cases, students who develop a close friendship with their instructor may even begin to idolize their teacher. I can remember one instructor in particular who taught me so much more about flying that we became life-long friends. We ended up sharing a house and took part in each other’s weddings. Jerry was one of best friends and we took many trips together in his Citabria and later in a beautiful Piper Cub that he kept at a grass strip on his farm.

One thing I never thought about and none of my flight instructors ever brought up was aircraft insurance. Looking back now after 30 years, I realize it was not that my instructors didn’t care about insurance; it was more likely that they, like many pilots, don’t know the subject matter.

So as a flight instructor what, if any, role should you be playing in the educational aspects of your students when it comes to aviation insuranceè Further, where can you learn more about aviation insuranceè

Insurance Options

First off, there are essentially two main types of aviation insurance your students may need: aircraft insurance for the student who owns his or her aircraft and non-owners (renters) aircraft insurance for the student who is using a borrowed or rented aircraft. The former applies to the owner’s potential legal liability arising out of his or her ownership and operations of the aircraft and the latter applies to the non-owner or renters’ use of an aircraft he or she is using but does not own.

The owner’s insurance provides insurance coverage should someone be injured or should someone’s property be damaged as a result of their ownership or use of their aircraft. In addition, the owner’s insurance will pay for damages to the owner’s aircraft should an accident occur. On the other hand, the non-owner (renter’s) aircraft insurance will provide protection for the student who is renting an aircraft or borrowing an aircraft to take lessons. This non-owner’s (renter’s) aircraft insurance, like the owner’s aircraft insurance, will protect the student should someone be injured or should someone’s property be damaged as a result of his or her operation of a non-owned aircraft. Further, under the non-owner’s (renter’s) insurance, the student will be protected should the aircraft he or she is using gets damaged as a result of use; however, for this part of the non-owner’s (renter’s) insurance to apply, the student must be at fault in some way.

I know you’re probably saying, “Great, I’m supposed to understand aircraft insurance after reading this articleè” No, you aren’t, but the basis of these two types of aircraft insurance is important. The next step, depending on your time, is to check out some of the articles that have been written for EAA eHotline on the various topics related to aviation insurance. In addition, you should also keep one phone number handy: 866/647-4EAA. This toll-free phone number will put you or your student directly in touch with one of the Falcon Insurance Agency Insurance Specialists that handles the EAA Aircraft Insurance Plan and the EAA Non-Owner’s (Renter’s) Aircraft Insurance Plan. You can get straight answers to aircraft insurance questions.

Also, as an instructor, you should remember the NAFI Professional Liability and Non-Owners Aircraft Liability Insurance Plan. This exclusive NAFI Member Insurance Plan provides both professional liability insurance, during and after you provide flight instruction, flight review, or other evaluation flight checks. In addition, the NAFI Plan also provides non-owner’s aircraft liability insurance during your use of a qualified aircraft you do not own but use for flight instruction or personal use. The NAFI Plan has already saved many NAFI Members from being caught high and dry without insurance protection. If you are a NAFI Master CFI you will receive an addition discount of up to 35 percent on your insurance. The NAFI Plan is designed by professionals for professionals.

If you want to enroll in the NAFI Instructors Professional Liability and Non-Owned Aircraft Liability Insurance Plan, go online to http://www.falconinsurance.com/eaa_non_owner_brochure.pd and download the NAFI Plan Application. Fill-out the application and send it in along with your premium payment. You’ll receive confirmation of your insurance along with a copy of your personal insurance policy. Your insurance protection in the NAFI Plan can cost as little as $200 a year. For less than $2 a day, a NAFI Member can secure a complete package of insurance, including all of the coverage mentioned above. For complete details you can get a quote over the phone by contacting the NAFI Insurance Plan Specialist at 866/243-NAFI. Remember, premiums paid by NAFI members for insurance in the NAFI Instructors Professional Liability and Non-Owned Aircraft Liability Insurance plan may qualify as a tax-deductible expense. The NAFI Instructors Professional Liability and Non-Owned Aircraft Liability Insurance Plan is an exclusive NAFI Member Benefit available only through Falcon Insurance Agency, the exclusive agency for the NAFI Insurance Plan.