I've had an engine failure on takeoff on every checkride I ever remember taking, and had plenty of them in training. If you're not teaching them, you're shortchanging your students
Gomer,
Im interested to know what type you are talking about?
I did teach EFATO's to students in the R22, but only to a hover recovery, cos if they can get it to hover height maintaining airspeed and RRPM that is survivable. Unless you are a Robinson test pilot that does this every day it would get bent very quickly. In an R44, or B206 etc. its a different matter, they have the required inertia to do it safely.