Interesting question about flight school. My instructor is speaking to his company about exactly that...in the event that he is teaching me, but I am in the left hand seat, if something happened, who was actually flying? If it was me, then does the insurance cover it?
From my point of view, life and house insurances covered, and wont be much left of me to worry about anyway!
The interesting thing he pointed out was that most car insurances, even comprehensive, don't necessarily cover injury to the driver. Ever thought about that?