I feel a paid instructor should provide the plane. If it's the student's plane, he would have liability insurance to cover it. Mechanical/radio failures would be covered by the compensated instructor as part of the "package". Out of his own pocket.

Ideally, I believe that paid flight instruction should be undertaken away from the "club field", on the instructors own field. If it was on the club's field, a portion of the proceeds should be paid to the club for use of their facilities. Liability insurance would be the responsibility of the compensated instructor. AMA membership would be the responsibility of the paid trainer in order to access the club field.

Sorry, folks, the compensated training aspect would become a business, and not a hobby, and would, or should, be run as such.

Sounds sad, I know. but I really believe there are benefits for everyone.

An option, yes?