Why do you need non-owned coverage?
If you are flying an aircraft that you don’t own and have an accident or cause damage to a non-owned aircraft you are using, you can be held financially responsible for the loss.
In the event of an accident the aircraft owner’s insurance policy will protect the owner to repair, or replace the aircraft, as well as defend the owner against potential liability. The aircraft owner’s insurance company may not extend coverage to you, and in fact may subrogate the cost of the loss for both the aircraft and any liability back to the renter pilot. The aircraft owner may also pursue the renter for the owner’s cost of the insurance deductible and possibly payment for any loss of use of the aircraft.
Flight instructors assume a greater extent of liability due to the work they perform. They must let the student practice the lessons and instructions without jeopardizing the flight to the point of an accident. To protect the flight instructor from potential financial loss they should purchase a non-owned aircraft insurance policy to include their use of flight instruction.
A non-owned insurance policy will provide aircraft liability and passenger liability up to the agreed upon limit. It can also provide physical damage liability which will often include payments for the insured deductible or aircraft loss of use. Non-owned insurance policies are available for both private pilots and flight instructors through several markets.