Independent schools are committed to delivering an exceptional educational experience, but what happens when the unexpected hits? From building damage to legal claims, having the right property and casualty insurance in place can make all the difference.
This blog outlines the essential areas of coverage and important considerations for school leaders to keep in mind.
Property Coverage: More Than Just the Buildings
Your school’s property coverage extends beyond the walls of your buildings to the contents within, including desks, electronics, and furniture, as well as loss of business income. It’s easy to overlook your property insurance once established, but revisiting your policy regularly can prevent underinsurance.
Things to consider:
- Review your policies every six months to ensure that new investments or upgrades are fully protected.
- Proactive campus maintenance can mitigate risks like leaks or electrical issues that could lead to costly repairs down the road.
General Liability: Protection Against Accidents on Campus
General Liability insurance is often part of a package policy that includes property coverage. This coverage protects schools from lawsuits related to on-campus injuries. However, it typically excludes high-risk areas such as employment practices, educators liability, cyber liability, and sexual misconduct.
Practical Tips:
- Campus Inspections: Regularly check for potential hazards, especially before events like open houses.
- Vendor Insurance: Require third-party contractors to provide certificates of insurance, and, ideally, to list your school as an additional insured.
- Employee Training: Regular training on critical topics such as sexual misconduct can reinforce safety measures.
Cyber Liability: Addressing Growing Digital Threats
With cyber risks increasing, dedicated cyber liability insurance is a wise investment for schools. It covers the costs associated with data breaches, ransomware attacks, and other cyber incidents. Many general liability policies include minimal cyber coverage, which may not be enough in a severe cyberattack.
Important Steps:
- Have a dedicated cyber insurance policy, which provides coverage to help investigate a cyber attack or data breach, manage legal fees, recover equipment, manage public relations, support individuals post-attack, and more.
- Create a cyber incident response plan that involves all key staff, not just the IT team.
- Conduct regular cybersecurity training to minimize risks associated with human error.
Directors and Officers (D&O) Liability: Safeguarding Leadership
Directors and Officers insurance protects school leaders — past and present — from personal liability claims. This coverage helps cover legal expenses for issues like negligent hiring, alleged civil rights violations, wrongful termination, or misuse of funds.
Considerations:
- Build strong relationships with your insurance provider and legal team to streamline communication during critical times.
- Develop clear policies for high-risk areas like admissions, grading, and disciplinary procedures.
- Ensure school leaders know their duties as the insured party, especially when they must report a claim or incident.
Employment Practices Liability: Protecting Against Workplace Claims
Employment Practices Liability covers issues like harassment, discrimination, or wrongful termination. Unlike general liability insurance, this specific coverage addresses employment-related claims, which can be financially significant for schools.
Best Practices:
- Annual Handbook Review: Keep employee policies up-to-date, ideally with the input of employment law experts.
- Detailed Record-Keeping: Accurate personnel records can provide a strong defense if a claim arises.
- Educate yourself, your management team, and your staff about the types of claims that fall under employment practices liability.
Educators Legal Liability
Educators Legal Liability (ELL) insurance is designed to cover a broad range of claims made against school administrators, employees, and staff members such as errors or omissions made in the teaching of a student, grading of a student’s performance, admission or placement of a student, and more.
Considerations:
- If you have this insurance policy, ensure it includes a broad definition of wrongful acts to cover issues.
- Review Common Exclusions: Understand what the policy does not cover, such as bodily injury, property damage, or certain employment practices if not explicitly included.
- Educate your staff about exposures and be consistent with policies.
Preparedness Is Key
A comprehensive Property and Casualty insurance plan ensures that schools can bounce back from unexpected events. Proactive steps like regular policy reviews, preventive maintenance, and staff training play a big role in protecting your school community and assets.
