124,
I explored this issue a while ago: I am talking UK here. It is a particular problem for self-employed pilots. They are more likely to be sued than employees. It is almost always easier to sue the employer for vicarious liability than the employee and the employer's wallet is likely to be larger(?), people think . The same is not true for freelancers' acts: vicarious liability does not apply to what they do, apparently.
I discussed it with the BHA. They are aware and consider it a major issue.
As far as I have been able to find out general pilots' liability insurance is difficult to find and would be very costly, because of the potential size of the liability. The only exception is for instructors. At my last instructor seminar there was some blurb about a policy which had what seemed like reasonable rates. However, the limitations on cover were also fairly low.
One Pint is right that the best route is to get you added to the aircraft policy. However, it DOES NOT happen automatically. This is particularly true if you get your work short term, which is typical of freelancers. It is also often difficult to insist on checking such things, prior to being taken on.
It is your estate and family that are more likely to be affected in a serious incident, as you say.
There have been one or two high-profile cases where widow's houses have been threatened: the details of the outcomes are difficult to establish. Lots of our pax are rich and their families are likely to have good (expensive) lawyers. After the event everyone tends to get vindictive sadly.
Apparently setting up a limited company and working through that has very limited benefit re: this problem. The aggrieved always has the option of going around the limited company and suing the individual for his negligence, so I was told.
I am afraid that I have stuck my head in the sand, together with most other freelancers, I suspect. It might be sensible to play games like putting any big assets into trusts or similar, but that:
a) assumes you have anything worth suing for, and
b) Probably ought to be the subject of legal advice (more money!)
Last edited by Helinut; 15th Feb 2011 at 11:26.
Reason: To add comment about Ltd Companies