Some CFIs who are also aircraft owners make a little money on the side by instructing in their own airplanes, although insurance policies don't cover them for the risks. Avemco's Jim Lauerman told AVweb in this podcast that the company will soon introduce a specific policy product to address this tiny niche of the market. Premiums will be a fraction of the expensive commercial policies FBOs and flight schools have to buy, but Lauerman believes it won't affect those businesses measurably.
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