Your replies have been very helpful. Whopity... I was referring to the instructors liability insurance, in the event that someone would claim against me eg: I send a student off for a first solo, the student has an incident and the student (or family) claims against me as the FI that I was negligent in my training where I had ommitted to cover something, wx was inappropriate, etc.
The questions I've raised seem to elicit a myriad of different responses in my place of work so I always think it's helpful to get the facts. Thanks to all.