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freelance instructing

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My thoughts on insurance - When I was just starting out, I decided not to buy liability insurance. Attorneys generally will not sue someone who does not have assets - What do they hope to gain? My 1988 Grand AM?

If you are concerned about getting sued, incorporate yourself as a business. That way if somebody does decide to take action against what you have done as a CFI, it will not affect your personal assets - only those of your corporation.
 
You generally won't be sued if you don't have any assets, however, it still could happen. Laywers will sometimes sue to go after future earnings.
 
Even though I was covered by a non-owned policy and checked out in all of their planes, they still wouldnt let me do it. I call it greed.

I'd say you're being a little harsh. Profit margins at most flight schools (and everywhere else in aviation) are very slim. Unless a school has more students than its instructors can handle, don't they kind of owe it to their own people not to provide the means by which freelancers can come in and underprice them? The flight school I worked for allowed freelance instructors, but we were ripe with students for our own instructors. Since 9-11, the pickings have been much slimmer, so they have disallowed freelancers. I don't think it has to do with greed so much as good business sense.
 
Insurance and corporations

The incorporation idea does not work unfortunately. I am not an attorney, but can tell you ANYONE can be sued for ANYTHING. Even if you are not at fault, the cost to defend yourself can send you to bankruptcy.

You may form a corporation, however that does not insulate you from personal liability in every case. If the corporation formed includes you as the only officer and the purpose is flight instruction, I would be surprised if any marginally competent attorney could not "pierce the corporate veil". Just not a good idea.

Insurance, though outrageously expensive, is still the best course of action. In my case, I will be working with an FBO which requires it of their instructors. I also own a home I would like to hang on to for awhile....

PA
 
CFI, Inc. or LLC

Good post about incorporating or even turning yourself into an LLC. I don't think instructors can become PCs or PAs. I'm no attorney, either, but there are too many opportunities for an independent CFI to comingle business and non-business matters and allow the veil to be pierced.

Just bite the bullet and purchase the insurance. It's much less trouble in the long run and more conventional to boot.
 
Wiggums has the right idea. I taught for the Continuing Ed Dept at Texas Tech University in Lubbock. They did all the advertising and provided the place to teach and all materials. I put a PA28-160(not a good trainer) on lease-back and did pretty well. They paid $40/hr and I paid myself $30hr flying. I can't tell you about insurance. The hassles and libility aren't worth it. That is why I don't instruct anymore.
 
I was a freelance instructor for a long time. I have since stopped instructing for the most part. The only instruction I give is for someone with whom I've been flying for years and I am named on his insurance policy. He has been flying for a long time and keeps up his proficiency, so the risk is minimal. Otherwise I do not instruct due to liability concerns. Right now I have no assets to speak of, but I am indeed concerned about future earnings since I am applying for an electrical apprenticeship program, and college educated people with a skilled trade usually do exceptionally well financially. So that pretty much eliminates me from the ranks of active instructors. I will however continue to attend the FIRC seminars to keep my CFI current since I gain valuable new aviation knowledge each time I attend a seminar. I do encourage those who no longer instruct to keep up with the FIRC's. After all, I worked hard to get that CFI/CFII/MEI and I won't let it expire.

Fly Safe!
 
thanks to all of you that answered

thanks guys for all he info and advice
wish me luck
fulcrum
 
Fulcrum,

I don't get to instruct much any more, but when I get the chance, I revel in it. You'll enjoy teaching. How could anyone not enjoy sharing flight?

Greg Brown put out a book called The Savvy Flight Instructor. I don't know if they still do, but NAFI would send that book to new members as part of the membership. That's probably the best book you will find on the subject. It covers getting and retaining students, and a plethora of other information. (How many hats would you say there are, in a plethora...sorry).

Liability insurance is great, but nearly impossible to get and it's a lot like a really small parachute; it will only break the fall. It won't stop the fall. You're going to incur liability by providing instruction, and that liability doesn't go away for a long time. You teach a student and three years later that student hurts somebody, all he or she need say is that Fulcrum-my-instructor taught me to do it this way. Fight's on.

All you can do to truly defend yourself is to provide the best service you can possibly give. Train to proficiency. Recognize that you're NOT building hours, but providing one of the most valueable and noble services known to mankind; you're teaching. Treat your endevour with the respect it deserves; take it seriously. This is the best defense against lawsuits. You can't prevent them, but you can avoid them.

As for finding work, it's out there. Business cards help. Get involved in every way you can. Recognize now that free time is a thing of the past. Give up your weekends, your evenings, your mornings, and your lunch hours. Whenever you have five minutes, pursue your vocation like a holy quest. Most instructors sit at the office and wait for business; it doesn't have to be that way. Go get it.

Get involved with Civil Air Patrol. You can't charge for instruction in the airplane, but you can make contacts, get instructing experience, and it will bring you business. Count on it. Same for EAA, and other groups at the airport. Make yourself known. Get in and help out.

Teach boy scout aviation merit badges, and offer to take every scout who passes for an intro flight. This will make you known. I've done this for many years, and I believe in it.

When I was doing a lot more instructing, I found endless ways to get attention for flying, and flight instructing. I towed banners advertising the fact, I took an airplane apart once and put it together in a mall to sell aviation and instructing. I taught classes, ground schools, public awareness classes, etc. I towed an airplane through a parade. Lots of late nights with students, early mornings, and everything in between.

Follow up with your students. How many people start flight training, but never finish? A lot. How many get a pilot certificate, and then drop out? There are many inactive pilots you can go get and bring back to activity. If you don't hear from someone after a week, call them. Send cards. Visit. Show them you're interested, and motivate them. Motivation in flying is contageous, and you must be the disease carrier. Take it to your public, to your students, and infect them, then keep it active and burning inside them. It's entirely up to you.

Good luck!!
 
CAP

Avbug gave you an excellent suggestion by urging you to get involved with CAP. No, you cannot charge for your time, but you can build up instructing experience. You can become a check pilot and give annual Form 5 Rides. If your wing permits, you can give flight instruction towards ratings in CAP aircraft. I did. My first two signoffs were CAP members.I became an Assistant Chief Check Pilot in my wing and attended and helped put on two check pilot clinics. We learned directly from an FAA man who trains examiners how to conduct a flight examination. That was invaluable training. Perhaps more importantly, CAP will open the door to make great contacts. Through CAP, I met and became friends with some extremely fine people who helped me get my career off the ground.

Good luck with your enterprising.
 
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