Personal liability for independant instructors

[RandomGuy1]

Question for the independent instructors out there. I'm currently a DM and working on AI and eventually instructor. I will not be affiliated with a shop. I have professional liability insurance through DAN, but should I be looking at adding an additional insurance policy such as an umbrella policy? I have to make sure my personal assets are protected should there be an incident, as scuba isn't my day job.

 

[Capt Jim Wyatt]

Your homeowners insurance may pick that up -- check with them.

 

[kierentec]

Unfortunately, because of the way the dive industry is set up, we have loads of liability as instructors (independent or employed by a shop, doesn't matter). Your pro liability insurance will cover legal costs, but if you really screwed up and lose big and the damages that are awarded are greater than your liability insurance, they're coming after your assets.

Forming an LLC might help protect personal assests, but probably not.

 

[tbone1004]

you will need to set up an LLC for any real hope of isolation

 

[Scuba Lawyer]

Most homeowner policies do not cover claims arising out of business pursuits. I'd try to find an umbrella liability policy that will piggy-back onto your dive professional liability coverage for additional coverage. The amount is up to you but the more $ coverage the better. Wrongful death and quadriplegic claims ain't cheep. If you are personally doing the teaching (as opposed to having a company that employs others to teach) not sure an LLC or any other entity is going to be any protection. If the president of a large corporation personally commits a tort leading to injury I am unaware of any legal fiction that would insulate that president from liability. My 2 psi. M

 

[Capt Jim Wyatt]

Most homeowner policies do not cover claims arising out of business pursuits.

Mine did. I was sued for wrongful death and the professional liability insurance I used back then was Witherspoon. My homeowners pitched in co-counsel for the five years that the suit took to be over.

 

[Scuba Lawyer]

That was great coverage. Different states and different policies have different coverage rules and exclusions. At least here in California the safest thing to to is buy as much professional dive liability coverage as you can.

 

[lowflyer]

Good luck! The basic liability coverage is expensive enough. If you have significant personal worth, the cost of adding additional coverage blows one's mind. If instructing will be a part time job for you, is it worth it?

 

[Capt Jim Wyatt]

the safest thing to to is buy as much professional dive liability coverage as you can

Maybe Not.

If you buy $2 million worth of coverage that is the amount the plaintiffs will sue you for.

 

[kierentec]

Maybe Not.

If you buy $2 million worth of coverage that is the amount the plaintiffs will sue you for.

It’s also a bigger pot from which the lawyer can pull from….