What liability does an aviation inspector have for errors & omissions?
I only can speak for Canada but we use much of the American regulations in Canada as part of our regulations. In Canada, all mission critical systems Ie flight control systems etc ... have to be signed off by 2 inspectors for a total of 3 people working on the system. The maintenance engineer will sign of there own work and the inspector will sign off the inspection. A second inspector will sign off the secondary inspection. So typically if there is an error one person is typically not solely responsible for it. Additionally all inspectors and maintenance engineers licenses are only valid while working for a maintenance organization AMO. The organisation's insurance typically covers the employees working for them. When I went through my licensing I was told that we could still be held liable for criminal prosecution if we were willfully negligent. It was explained to us this only incurred once previously.  If memory serves me correctly it was the mechanic responsible for a plane that went down in the Florida everglades.