DAN offers free insurance to students. It’s not a lot of coverage, but that proves that there is market potential to provide student only insurance coverage. I’m sure if DAN knew instructors wouldn’t have insurance, than the student insurance would need to cost a bit and coverage would need to be increased some. But the idea is to remove the million dollar policy so lawsuits decrease. Of course anyone will try to sue for any reason, but any lawyer will tell you that unless the person you are suing has a ton of money or a good insurance policy, its not worth it.
The certification agencies would be the next target, so the wording in the initial student paperwork would have to free them from liability. And certification agencies would need to stop advertising for dive shops or instructors so it isn’t perceived as though they are recommending someone.