Cost of liability insurance

[fisherdvm]

I have absolutely no desire to get liability insurance or to work as a DM. I was told that some diveshop will add you to their liability insurance as an employee, but it is still iffy if it is adequate coverage. From what I understand, you should get liability limit roughly equals to your networth.

In your experience, as either a DM, AI, or instructor - how much does it cost for you to maintain liability insurance for yourself? I am guessing $500 to $1000 a year USD? Are most of these policies "event occurance", and not "event occurance with a tail coverage"?

What I mean is, lets say you issued a diver his C-card, and ignoring that he had shortness of breath during his swim, and complained of dizziness. 2 years later, he had an asthma attack while diving his second dive after receiving the C-card. His family filed a lawsuit against you, and you canceled your insurance. Do most of the pros carry insurance with tail coverage, so that such an event occuring after the policy is up will still be covered??

What if your insurance company is out of business during this "tail" period. In the medical community, I believe that the state of Michigan has a fund to continue coverage for physicians even if their malpractice insurance carrier is out of business.

 

[ppo2_diver]

The price of insurance varies each year. I haven't seen this years numbers yet, but last year I paid $588 as an independent instructor. I also carry liability insurance for my gear as I use it as rental as well.

To answer your questions about "tail" insurance. Yes, you have to keep insurance after you quit teaching. You don't have to pay the full amount, but you need to carry insurance for 7 years after the last c-card issued (for adults, for kids it is # of years to 18 plus 7 years after). It is called something like inactive teaching insurance. It just covers your a$$ after you stop teaching. I don't think DMs need this insurance.

 

[Don Wray]

The cost for a DM to conduct DSDs on their own or act independently of an instructor, runs roughly $325 annually. The cost of insurance to act as a certified assistant only is around (roughly) $215 from V and B. I can get you the exact cost for 2008 if you wish. The 2009 rates are not published yet. Witherspoon is roughly the same within a few buck.

 

[Dive-aholic]

Witherspoon charges about the same for DM, but it significantly less for instructors. Click the link for this years rates.

And yes, we do have to carry insurance after we've stopped teaching. The insurance is a claims filed insurance, so if you're not carrying it when a claim is filed, you're SOL.

 

[fisherdvm]

Next question, I don't imagine PADI will require proof of insurance prior to issuing a DM or OWSI certificate, right? They just want the check and the yearly renewal fee, right?

 

[Dive-aholic]

Wrong. They may issue the card prior to cert proof, but you will not be an active member without the insurance. Every year we get little stickers to put on our cards that state we are active teaching members. You don't get this without sending in proof of insurance.

 

[ClayJar]

I'm not PADI, but it's basically the same everywhere. I just got my NAUI DM, but my insurance forms were not sent in together with my membership application. I got my number and card, but I was placed in "administrative sustaining" status until they had received and reviewed my insurance forms. Once they had that documentation, my status was changed to "active".

NAUI calls carrying insurance showing "financial responsibility" and absolutely requires it of anyone certified in the US or teaching/assisting US citizens elsewhere. (Also Canada, the Caribbean, et cetera, but I'm not going to bother pulling a direct quote this time. :biggrin

The thing about the insurance is that the agency certifying a divemaster or instructor is included as an insured party covered by your insurance. If you get someone injured (or worse), your insurance will cover you, but it will also cover the agency to which you belong. (That's why they require it of you.)

 

[Divin'Papaw]

Question for those with PADI ... can you finish up DM, get your certification, pay your dues and become a PADI member, but not purchase insurance and therefore not become an active DM? Do they have such a thing as a current (PADI member) but inactive (no insurance) DM?

 

[Dive-aholic]

Yes, but what's the point? You can learn the information without taking the course. The course is more about the PADI way and how to do things per PADI standards. If you're just looking for the physics/physiology/etc. knowledge, then read the Encyclopedia of Recreational Diving. Showing a DM card if you're not insured or active is just asking for liability that you don't need.

 

[Divin'Papaw]

Yes, but what's the point? You can learn the information without taking the course. The course is more about the PADI way and how to do things per PADI standards. If you're just looking for the physics/physiology/etc. knowledge, then read the Encyclopedia of Recreational Diving. Showing a DM card if you're not insured or active is just asking for liability that you don't need.

The point would be if you don't have the time to DM at the moment or funds to purchase insurance, you can still stay current so that all you have to do is pickup insurance when you have the time or money to DM again.