Instructor Question?

[CJ Waid]

I am working on becoming an instructor (just a matter of paying for the courses over the next couple months), what I am wondering is about the insurance.

I plan on venturing out on my own after I get up enough money for the 'rental program' so I can have the gear I need, but until then I will probably try to work through dive shops.

My question is about insurance, liability insurance... If I am working through a dive shop, would I fall under their insurance?, do I need to purchase my own insurance?, can you just use waivers (I know waivers aren't very strong, but... it is a known risk to scuba dive)...???

Any help in this area is appreciated.

Also, anything about hidden cost of being an instructor... I am going for PADI, so any organizational fees, etc...

Thanks in advance.

 

[String]

In summary,

(i) it ain't cheap
(ii) you'd need to be an idiot to not have your own personal insurance.

Personal liability is a must.

Waivers, forget it. In most countries a waiver cant waive any rights for negligence and so on.

Really no way around it, you need professional personal liability insurance.

As for costs, padi isnt cheap, insurance isnt cheap and in lots of countries the annual medical isnt cheap.
PADI + Medical + Insurance fees per year for where i am come to roughly $550

Probably cheap in the US but still bank on a few hundred.

 

[daniel f aleman]

Talk to an instructor in your area, you'll get all the info needed. Insurance is manditory for each instructor, you will find out why when you become a Divemaster... and yes you will use waivers, for each student.

 

[Thalassamania]

I am working on becoming an instructor (just a matter of paying for the courses over the next couple months), what I am wondering is about the insurance.

Good luck and welcome to the club (in advance).

My question is about insurance, liability insurance... If I am working through a dive shop, would I fall under their insurance?, do I need to purchase my own insurance?, can you just use waivers (I know waivers aren't very strong, but... it is a known risk to scuba dive)...???

You have to buy your own insurance, it's just one of the many scams (well ... things) that you'll get used to as an instuctor. You see, a small amount of your payment goes to actually cover your premium, but the agent who places the policy gets a cut (sorry ... commission), the training agency gets a cut (sorry ... administration fee) and sometimes, I'm told, private individuals associated with a training agency get a cut (sorry ... bribe). If the industry had any sense it would folllow the example of the Sky Divers and go to "defense only" insurance, but then ... where's the money in that?

 

[pir8]

Yes you need insurance, some shops will pay it most don't. Some shops get group policies that are cheaper but if you are going to do any independant work you need your own.

 

[cudachaser]

Thru NASE, my insurance is about $540/yr. That covers $1M, $2M aggregate thru "Lloyds of London". I would go on your own and not with a LDS

 

[String]

Oh, if thinking of going abroad at all, in some countries insurance is a legal requirement (UK for example) meaning you cant legally teach without insurance (or a medical here).

 

[TheHobster]

In the US PADI requires that you have insurance - it helps you to have it - most shops hire instructors as independent contractors, so you are on your own for coverage -

Once you go thru the IDC, Instructor Institute or whatever, you will get the nuts and bolts of waivers - essentially they, and a medical form, are required of every student for every class they take

 

[ScubaRandy]

As an instructor that teaches thru a shop 50% of the time and independently the other 50%, I looked at doing the insurance thru the shop or purchasing my own.

In the end, I purchased my own. My reasoning was that if I had an incident when teaching independently, it really wasn't right to have my insurance thru the dive shop.

Another thing that I did recently was incorporate my scuba diving instruction business. Cost me about $100.00 here in TN, and it separates my personal assets from the business assets. Just another layer of protection. I had a friend of mine working in another line of work that had a lawsuit against his part time business. He was filing everything tax related as a sole proprietorship. While he won the lawsuit, the scary part was that the people suing him was looking at EVERYTHING he owned in determining what to sue for. His attorney told him to rush out, get his business incorporated, and if this would happen again, all they could win would be the assets of the business.

I realize that this was just about the insurance aspect, but I also think that as independent instructors, or part time instructors, we really need to look at the risk management aspect of what we do, and how do we protect the students, ourselves, and our families...

Don't let my post discourage you from becoming an instructor, but rather think about how to structure your business. By taking the time now to do this, you will be able to concentrate on becoming the best instructor that you can...

Congratulations in advance!

Randy

 

[Ocean One]

All the part-time instructors are employees of the store (for instruction purposes only) we teach for.The store purchases a group plan and we split the costs between DMs on up proportionally. I look at this way, it's the "deep pockets" theory, who are they going to sue and get the most out of me or the dive shop???? I definitely agree with ScubaRandy form an LLC or Incorp. to protect your personal assets. Costs are minimal and can often be done online in some states. Beside there are lots of additional tax benefits!!!!!