Educational Institutions Insurance FAQ

• At the minimum, educational institutions need professional liability insurance (educators legal liability).
• Almost every educational institution needs general liability insurance.
• If they have employees they will need workers compensation in most states.
• If they have vehicles registered to the business, or use vehicles for the business purposes, they will also need commercial auto.
• There are also other specialty coverages and endorsements that might be needed based on their operations.

The package policy is the most convenient way to group multiple coverage forms together. Most classifications in this category are eligible for only a commercial package policy (CPP), but those eligible for the businessowners policy should consider it because of the discounts available and the coverages provided.

Types Of Educational Institutions Package Policies:

• Businessowners Policy (BOP)
• Commercial Package Policy (CPP)

Owned and leased building values can be extensive. The buildings may be at a single location or spread out over a number of locations. Because many of these buildings may be older, the need for ordinance or law coverage should be evaluated.

Business personal property can include a wide range of items and, although some of them should be covered by property forms, others may require an inland marine coverage form or policy. An output policy should be considered as an option for institutions with higher values.

The business income changes-educational institutions coverage form should be included when business income coverage is provided.

Types Of Property Coverages:

• Building
• Business Personal Property
• Personal Property of Others
• Improvements and Betterments

INLAND MARINE COVERAGES Inland marine coverage forms provide educational institutions with the maximum amount of flexibility. A commercial articles coverage form insures musical instruments and cameras both on and off premises.

A thorough and complete property inventory should be prepared and property covered by inland marine forms removed from the property coverage forms in order to avoid duplicate premium charges because there will be no extra coverage.

Types Of Inland Marine Coverages:

• Accounts Receivable Coverage
• Bailee Customers Coverage
• Broadcasting Tower/Equipment Coverage
• Builders Risk Coverage
• Commercial Articles Floaters
• Contractors' Equipment Coverage
• Difference in Conditions (DIC) Coverage
• Electronic Data Processing Equipment Coverage
• Film Coverage
• Fine Arts Coverage
• Physicians' and Surgeons' Equipment Coverage
• Scheduled Property Coverage
• Signs Coverage
• Theatrical Property Coverage
• Transportation Coverage
• Valuable Papers and Records Coverage

Crime exposures vary widely within this category, but the one constant is the need for coverage against employee theft. Governmental entity owned schools have exposures similar to public or private institutions but the coverage forms used are slightly different.

If the school has a credit union on campus, Financial Institution Bond #23 is required to properly and adequately cover the need for crime insurance. Educational facilities that operate hotels or motels on premises should purchase guests' property coverage.

Types Of Crime Coverages:

• Computer and Funds Transfer Fraud Coverage
• Employee Theft Coverage
• Forgery or Alteration Coverage
• Inside The Premises-Theft of Money and Securities Coverage
• Inside The Premises-Robbery or Safe Burglary of Other Property Coverage
• Money Orders and Counterfeit Money Coverage
• Outside The Premises Coverage

Many educational institutions need surety bonds in order to function properly. Some enter into government contracts with arrangements that require providing supply bonds. Others must provide bonds in order to receive a variety of licenses and permits. Endowments may create the need for a number of different court and fiduciary bonds.

If employees of the institution are also public officials or even notaries public, the appropriate bond forms for those positions are also required.

Types Of Surety Coverages:

• Contract-Performance of Service or Supply Bonds
• Court Bonds
• Fiduciary Bonds
• License and Permit Bonds
• Miscellaneous Surety Bonds
• Notary Public Bonds
• Public Officials Bonds

The operations and exposures of educational facilities are not limited to their owned premises. Field trips and other off-site events and activities may expose the facility to lawsuits from students and the general public.

A listing and evaluation of all known exposures is important and necessary to select the most appropriate coverage forms to cover those operations and exposures.

Types Of Liability Coverages:

• Commercial General Liability (CGL) Coverage
• Employee Benefits Liability Coverage
• Employment-Related Practices Coverage
• Liquor Liability Coverage
• Owners and Contractors Protective (OCP) Liability Coverage
• Railroad Protective Liability Coverage
• Special Events Liability Coverage

An educational institution may employ a number of professionals as instructors and/or advisors. All measures must be taken to protect the institution against any and all mistakes, errors and omissions made by such employees while performing duties in those capacities.

Types Of Errors And Omissions (E&O) Coverages:

• Accountants Professional Liability Coverage
• Architects or Engineers Professional Liability Coverage
• Beauticians and Barbers Professional Liability Coverage
• Errors and Omissions Insurance-Miscellaneous Coverage
• Forensic Liability Coverage
• Funeral Directors or Morticians Professional Liability Coverage
• Hospital Professional Liability Coverage
• Insurance Agents and Brokers Errors and Omissions Coverage
• Law Enforcement Liability Coverage
• Lawyers Professional Liability Coverage
• Miscellaneous Medical Professional Liability Insurance Coverage
• Mortgage Bankers and Servicing Agents Errors and Omissions Coverage
• Physicians, Surgeons and Dentists Professional Liability Coverage
• Printers Errors and Omissions Coverage
• Registered Representative Errors and Omissions Coverage
• Safety and Environmental Consultants Errors and Omissions Coverage
• Title Abstractors Professional Liability or Errors and Omissions Coverage
• Trust Department Errors and Omissions Coverage

The automobile exposure for many educational institutions is limited but some may own vehicles to transport items around campus and for running errands. Still others may have extensive fleets consisting of a number of different vehicles used for different purposes including the transport of students.

Types Of Business Auto Coverages:

• Auto Medical Payments
• Business Auto Coverage
• Collision Coverage
• Comprehensive Coverage
• Garagekeepers Coverage
• Hired & Non-owned Auto Coverage (HNOA)
• Uninsured/Underinsured Motorists Coverage

Most employers are required by state statute to provide coverage for on-the-job injuries sustained by their employees through a workers compensation policy. Some educational facilities are large enough to self-insure their exposures, but these facilities are often required to provide an excess workers compensation self-insurance bond as a guarantee.

Types Of Workers Comp Coverages:

• Excess Workers Compensation Self-Insurance Bonds
• Longshore and Harbor Workers' Compensation Act Coverage
• Stop-Gap or Employers Liability Coverage
• Workers Compensation and Employers Liability Coverage

Some educational facilities have very limited liability exposures. Others, especially larger ones, have numerous diverse and extensive holdings to protect and activities conducted that present severe exposures. However, because all involve students, one or more of the following policies should be used to provide excess coverage.

The limits purchased will depend on the size of the institution and the extent of its assets and operations.

Types Of Excess Liability Coverages:

• Excess Liability Coverage
• Retroactive Excess Liability Coverage
• Umbrella Coverage

Educational institutions are extremely varied in their makeup and exposures. Many different policies are available to assist them in covering their operations and exposures and to protect their assets.

Types Of Specialty Coverages:

• American Expatriate Coverage
• Business Legal Expense Coverage
• Cable TV Liability Coverage
• Commercial Credit Coverage
• Cyber Liability Coverage
• Data Security Breach Coverage
• Directors and Officers Liability Coverage
• Educators Legal Liability Coverage
• Electronic Data Liability
• Environmental Impairment Liability Coverage
• Fiduciary Liability (Pension, Welfare and Employee Benefit Funds) Coverage
• Identity Theft Insurance Coverage
• International Insurance Coverage
• Lead Paint Contamination Coverage
• Media/Communications Liability Coverage
• Patent Infringement Liability Coverage
• Recreational Trail Liability Coverage
• Risk Retention Group Liability Coverage
• Solar Energy System Coverage
• Tax Liability Coverage
• Tender Offer Defense Expenses Coverage
• Terrorism Insurance Coverage
• Title Insurance Coverage
• Underground Storage Tank (UST) Liability Coverage
• Unmanned Aerial Vehicles (UAV) (Drones)
• Weather Coverage