Thanks for all the great information. I will certainly ask a few more questions about this once I start my course and (fingers very tightly crossed) find employment afterwards.
With regards to the age of the passengers, it came up in a conversation with one of my friends (who is a restricted instructor at the moment) and he said that he isn't allowed to fly children below 5, this may just be a club rule though.
Roughly how much do you reckon Instructor liability cover for the year cost as a new and restricted FI?