When it comes to education, private schools offer a unique and exclusive experience for students who can afford the tuition fees. However, running a private school comes with risks and exposures that could lead to lawsuits, property damage, and other liabilities. To safeguard against unforeseen events that could jeopardize their operations, private schools need insurance coverage. In this article, we’ll discuss private school insurance, who needs it, the types of insurance needed, the cost of insurance, and the risks and exposures faced by private schools.
Who Needs Private School Insurance?
Private schools are businesses and require insurance coverage to protect themselves against potential financial losses. If your school owns property, employs staff or contractors, provides transportation, or offers extracurricular activities, you need insurance coverage. Without insurance, your school could face lawsuits and other legal claims that could threaten your finances and reputation.
Types of Insurance Needed by Private Schools
There are several types of insurance that private schools need to protect themselves against risks and exposures. These include:
- General Liability Insurance: This insurance covers the school against claims of bodily injury or property damage to third parties.
- Property Insurance: This insurance covers the school’s buildings, equipment, and other assets against damage or loss due to fire, theft, or other covered perils.
- Professional Liability Insurance: This insurance covers the school against claims of negligence, errors, or omissions in providing educational services.
- Workers’ Compensation Insurance: This insurance covers the school’s employees against work-related injuries or illnesses.
- Commercial Auto Insurance: This insurance covers the school’s vehicles against accidents, theft, or other covered perils.
- Umbrella Insurance: This insurance provides additional liability coverage beyond the limits of other policies.
How Much Does Private School Insurance Cost?
The cost of private school insurance depends on several factors, including the size of the school, the type of insurance coverage, the location, and the claims history. On average, private schools can expect to pay between $5,000 and $20,000 per year for insurance coverage. However, the actual cost may vary depending on the specific needs of each school.
Private Schools Risks and Exposures
Private schools face several risks and exposures that could lead to financial losses or reputational damage. These include:
- Sexual abuse or molestation claims by students against staff or faculty members.
- Accidents or injuries to students during school-sponsored activities or events.
- Property damage or loss due to fire, theft, or vandalism.
- Employment-related claims, such as wrongful termination or discrimination.
- Cybersecurity threats, such as data breaches or hacking attacks.
- Natural disasters, such as hurricanes, floods, or earthquakes.
- Transportation-related accidents involving school buses or other vehicles.
Commercial Insurance and Business Industry Classification
- SIC CODE: 8211 Elementary And Secondary Schools, 8221 Colleges, Universities, And Professional Schools, 8222 Junior Colleges And Technical Institutes, 8249: Vocational Schools, Not Elsewhere Classified
- NAICS CODE: 611110 Elementary and Secondary Schools, 611210 Junior Colleges, 611310 College, Universities and Professional Schools, 624310 Vocational Rehabilitation Services
- Suggested Workers Compensation Code(s): 8868 School – Professional Employees & Clerical, 9101 School – All Other Employees, 7380 Drivers, Chauffeurs, Messengers, and Their Helpers NOC – Commercial
Private School Insurance – The Bottom Line
Private schools need insurance coverage to protect themselves against potential financial losses and reputational damage. By understanding the risks and exposures faced by private schools and choosing the right insurance coverage, schools can mitigate their liability and operate with peace of mind. It’s essential to work with an experienced insurance broker who understands the unique needs of private schools and can help you find the right insurance coverage at a reasonable cost. So, if you’re running a private school, make sure you have adequate insurance coverage to protect your school and your students.