What is failure and omission insurance
What liability does an aviation inspector have for errors and omissions?
There's a good article here on the same question for the US (you mentioned Texas). The relevant FAR is 14 CFR 43.12:
§43.12 Maintenance records: falsification, duplication or modification
a) Nobody is allowed to do or cause:
(1) any fraudulent or intentionally incorrect entry in records or reports that must be drawn up, retained or used to demonstrate compliance with a requirement under this Part;
In other words, no pencil whipping. And if you do and get caught, the FAA can suspend or even revoke your A&P certificate.
But that's just one part of the story. The FARs say nothing about civil liability and state law. Even if a mechanic gets everything right under the FARs, someone can sue them if they believe they have a civil lawsuit for negligence (just like suing a doctor or other professional).
And this is where this question probably gets unanswerable on this website: Local (state) law determines what liability, if any, the mechanic has. In the end, it all comes down to what is in your contract with A&P, what your state laws on professional liability are, and what the special circumstances are in your case.
I can only speak for Canada, but we use much of the American regulations in Canada as part of our regulations. In Canada, all business-critical systems, e.g. B. flight control systems, etc., are signed off by 2 inspectors for a total of 3 people working on the system. The maintenance technician signs his own work and the inspector signs the inspection. A second inspector will sign off the secondary inspection. So when an error occurs, it is usually not just one person who is responsible. In addition, all licenses for inspectors and maintenance technicians are only valid if you work for an AMO maintenance organization. The organization's insurance usually covers the employees who work for it. When I was going through my license, I was told that if we were willfully negligent, we could still be held liable for criminal prosecution. This has only been explained to us once. If the memory serves me correctly, it was the mechanic in charge of an airplane that crashed in the Florida Everglades.
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