The rubber doesn't meet the road until something happens, and most seriously is the case involving injuries or death. First step the attorneys take is find out what kind of target you are for a suit. If you don't own much, or have much to lose, they probably won't even bother. On the other hand, if you have a high net worth, they will come at you even if only for a quick settlement out of court.
I have a very good friend that is an expert witness in aviation cases, and I am familiar with many suits. I am familiar with lots of accidents and what never really makes it to the public after the accident is long over. There is a big game going on out there all the time.
Odds are, if you do everything right and are good at what you do, and very careful, everything will be OK. On the other hand, the risk is not zero. And if you fly enough (I used to instruct almost 100 hours per month), and jump in and out of enough different planes, with enough different students, the risk starts not being so small. A sad example is a Mooney that went down recently.
Unfortunately, I make a very desirable target. I still fly, but I don't instruct. Mostly for concern and fairness to my family.