Educational Institutions Insurance FAQ

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Frequently Asked Questions About Small Business Insurance


How much does general liability insurance cost?

In 2019, commercial general liability costs can vary widely based on industry. Businesses in higher risk industries pay more. Premiums are also determined by zip code and often payroll and/or gross sales. You can request a free quote to get an exact premium for your business. Read more...

What types of business insurance do I need?

Almost every business needs general liability and commercial property insurance at the very least. If you have any non-owner employees, you'll most likely need workers compensation insurance too as most state require it. It all depends on the risks your business faces. Read more...

How does general liability insurance work?

Having general liability is the basis of any business insurance program. If you can afford only one commercial insurance policy for your small business - then you should get a commercial general liability policy, because it offers protection against a wide range of common but unexpected risks. Read more...

What is a Certificate of Insurance?

A Certificate of Insurance (COI) is proof of coverage. It verifies that you have insurance coverage for your small business, & contains information on types and limits of coverage, insurance company, policy number, named insured, and the effective date of the policy. Read more...
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Educational Institutions Insurance FAQ Information

Educational Institutions Insurance FAQ

Educational Institutions Insurance FAQ. The exposures of one individual educational institution may be totally different from those of another. Because of this, comprehensive surveys of each facility are needed to accurately determine the proper insurance program needed by each.

While the exposures may be significantly different, they have the common component of educating a student and providing faculty that is competent and facilities that are safe for learning. Many of these institutions have a number of buildings, extensive grounds, and expensive equipment.

Comprehensive property and liability insurance is crucial, as is protection and coverage for tuition income, athletic events, teachers' liability and many other exposures.

We wanted to provide a deeper dive into small business insurance to help our readers get a better understand of the commercial insurance policies they want and need with the Educational Institutions Insurance FAQ.

Read the Educational Institutions Insurance FAQ to learn what type of commercial insurance coverages are right for your school - including liability, property, workers compensation and other specialty policies.

What Is An Educational Institution?

According to Wikipedia, "An educational institution is a place where people of different ages gain an education. Examples of some institutions are preschools, primary schools, secondary schools, and further and higher education.."

Educational Institutions include - but are not limited to - the following types of schools:

  • Art Schools
  • Automobile Driving Schools
  • Beauty Schools
  • Blind Institutions
  • Business Colleges
  • Chiropractic Schools
  • Colleges
  • Dancing Schools
  • Deaf and Mute Institutions
  • Dental Schools
  • Dressmaking Schools
  • Junior Colleges
  • Kindergartens
  • Law Schools
  • Medical Schools
  • Military Schools
  • Music Schools
  • Preschools
  • Preparatory Schools
  • Private Schools
  • Public Schools
  • Real Estate Schools
  • Schools of Mortuary Science
  • Universities

You can reference the Insurance Definitions, Dictionary And Glossary to better understand the commercial insurance policy terms and language used in our Small Business Insurance FAQs.

Types Of Educational Institutions Insurance Policies

Following are some suggested commercial policies and coverages applicable for schools:

PACKAGE POLICIES

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)
PROPERTY COVERAGES

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 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 COVERAGES

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
SURETY COVERAGES

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
COMMERCIAL LIABILITY COVERAGES

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
PROFESSIONAL LIABILITY COVERAGES

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
COMMERCIAL AUTO COVERAGES

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
WORKERS COMPENSATION COVERAGES

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
EXCESS AND UMBRELLA COVERAGES

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
SPECIALTY COVERAGES

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

Educational Institutions Insurance FAQ - The Bottom Line

There are many commercial insurance policies available for Educational Institutions. To find out what types of coverage your business needs, speak to a professional insurance broker with experience in insuring education related businesses.

Frequently Asked Questions By Industry

Learn about the coverages available for specific industires with the Insurance FAQs below:

Educational Institutions Insurance FAQ
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