Charter School Insurance Policy Information
Charter School Insurance. Charter schools offer so many wonderful benefits for their students. Children have the opportunity to gain a comprehensive education in a safe and inviting environment while developing lasting relationships with their educators and fellow students.
If you are thinking about starting a charter school, there is no denying that there are a lot of considerations and decisions to be made. One thing that you don't want to overlook is getting the right insurance coverage.
Charter schools are required to carry insurance coverage, though their needs are much different than the insurance needs of other types of industries.
It is for that reason the departments of education have established very particular insurance requirements for charters schools, and these establishments must comply with these requirements.
To find out more about the types of charter school insurance coverage you will need to operate a charter school and protect your staff, your students, and your establishment, keep on reading.
Charter school insurance protects your public school of choice from lawsuits with rates as low as $167/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked charter school insurance questions:
- What Is Charter School Insurance?
- How Much Does Charter School Insurance Cost?
- Why Do Charter Schools Need Insurance?
- What Type Of Insurance Do Charter Schools Need?
- What Does Charter School Insurance Cover & Pay For?
What Is Charter School Insurance?
Charter school insurance is a type of insurance coverage specifically designed for charter schools. It provides protection for a variety of potential risks and liabilities, such as property damage, liability for student accidents, and professional liability for teachers and staff.
This insurance covers the school for losses related to physical and monetary damage, legal fees, and other associated costs. The coverage is intended to help protect the school's assets, staff, and students, as well as provide peace of mind for those involved in running the school.
How Much Does Charter School Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small charter schools ranges from $167 to $209 per month based on location, enrollment, payroll, sales and experience.
Why Do Charter Schools Need Insurance?
The reasons why Charter schools need insurance are:
Protection against Liability Claims: Charter schools are open to potential lawsuits in the same manner as any other public or private school. Liability insurance can help to protect the school against claims that may arise from accidents or injuries on campus, discrimination claims, and other legal issues.
Coverage for Property Damage: Charter schools often own and operate their own buildings and equipment. Property insurance provides coverage for damage or destruction to the school's facilities, equipment, and other assets due to fire, theft, or other covered events.
Protection for Student Accidents: Charter schools have a responsibility to provide a safe environment for their students. Accident insurance can help to cover the costs of medical expenses that may arise as a result of a student's injury or illness on campus.
Coverage for Loss of Funds: Schools are often entrusted with funds from various sources, including state and federal grants, student tuition and fees, and local contributions. A loss of funds insurance policy can help to protect the school against losses due to fraud, embezzlement, or other types of financial crime.
In conclusion, Charter schools need insurance to protect themselves against a wide range of risks and to ensure that they have the financial resources they need to provide quality education to their students.
What Type Of Insurance Do Charter Schools Need?
Below is a look at the most common types of charter school insurance coverage that the department of education requires:
Abuse & Molestation - This type of insurance policy provides coverage for charter schools in the event that claims related to sexual molestation or abuse should arise.
It is important to understand that this type of insurance coverage is usually excluded under other types of policies, which is why a separate policy that offers this type of coverage is required. Claims of child abuse frequently allege negligence in 3 areas:
- Failure to exercise sufficient care in the selection of staff
- Failure to properly supervise the abuser
- The charter school allowed the abuser to continue working with children after abuse was suspected
Directors & Officers Liability - With this type of policy, directors and officers of a charter school will be provided with financial protection should they be sued for anything that relates to the performance of their specific duties in their role in a charter school. Most policies include:
- Side A Coverage: Insures individual directors & officers to protect their personal assets.
- Side B Coverage: Reimburses the organization for costs incurred when the organization indemnifies directors and officers in a claim.
- Side C Coverage: Protects the organization itself when it is named as a defendant in a claim.
Professional Liability (E&O) - This type of policy will protect a charter school from any legal claims that may arise that state there was a failure to perform professional duties, and that failure to perform resulted in damages to someone else. Some common allegations that E&O insurance covers are:
- failure to educate
- failure to supervise a classroom
- failure to respond to or prevent bullying activities of students
Employment Practices Liability - This type of liability insurance provides coverage against any wrongful acts that are associated with the employment practices of a charter school. Examples of wrongful acts including discrimination, sexual harassment, failure to hire despite meeting qualifications, and wrongful termination.
This policy protects charter schools against employee suits alleging violations of their rights under various federal acts.
Employee Benefits Liability - With this type of insurance policy, any wrongful acts that may be committed by a charter school's administration in regard to an employee benefit program will be covered.
Commercial Property Insurance - It is also a requirement for charter schools to have property insurance coverage.
In the event that anything happens to the physical property of the charter school, such as a flood, a fire, or theft, property insurance will provide the coverage that is needed to make any necessary repairs or replace the structure. Property insurance polices for charter schools may also cover:
- Bleachers, ticket booths and refreshment stands
- Broadened water
- Communication equipment, computers and media
- Extra expense
- Loss of income - planned events
- Money, securities and stamps
- Outdoor fences, signs, trees, shrubs and plants
- Personal property of teachers and others
- Portable classrooms
- Property off-premises
- Refrigerated property
- Equipment breakdown
- Tuition and fees
- Violent event extra expense
Workers Compensation - Since charter schools employ a staff of educators, food service workers, custodians, and other professionals, these institutions are also required to carry workers' compensation insurance. This type of policy provides coverage for medical care, as well as compensation for any employee who may become injured while on the job - for example:
- medical care from the injury or illness
- replacement income
- costs for retraining
- compensation for any permanent injuries
- benefits to survivors of workers who are killed on the job
In exchange for offering this type of insurance coverage, employees relinquish their right to sue the charter school.
General Liability - It is also a requirement for charter schools to cover general liability insurance. This type of insurance coverage protects employees, students, and any visitors to the property who may be injured on the property with compensation and medical care. Commercial general liability polices may also offer:
- Blanket additional insured coverage
- Coverage for school nurses and athletic trainers
- PTAs and booster clubs included as additional insured
- Volunteers and temporary workers included as insured
Commercial Auto - If you are transporting students, employees or others, commercial auto offers protection in the event of an accident with a school-owned vehicle. Business auto options may include:
- Additional transportation expense
- Coverage for employees using non-owned, hired or borrowed autos
- Hired car physical damage
- Physical damage to vehicle of employees or volunteers
Additional Insurance Coverage Options
In addition to the above-mentioned charter school insurance coverage options, there are other types of policies that charter schools may want to consider carrying. These policies offer additional protection and are highly recommended:
- Internet Liability. Should any personal or business-related information be compromised over the Internet, this type of policy will provide the necessary coverage.
- Identity Theft. Should the identity of an employee or a student be compromised, this type of coverage will offer the help that is needed to guide them through restoring their identity and protecting it in the future.
- Tuition Fees. If a school looses tuition fees as a result of being forced to suspend school as the result of a peril, this insurance will offer coverage.
And there are even more charter school insurance coverage options available:
- Commercial umbrella
- Corporal punishment
- Flood and earthquake
- Inland marine (sports equipment, musical instruments, audio/visual equipment etc.)
- Law enforcement professional liability
- School board legal liability
What Does Charter School Insurance Cover & Pay For?
Charter schools can face lawsuits for a variety of reasons, including:
Discrimination claims: Charter schools can be sued for discrimination based on race, gender, religion, or disability. Employment practices liability insurance (EPLI) can provide coverage for claims related to discrimination, harassment, and wrongful termination. EPLI can help pay for legal fees, settlements, and judgments resulting from these types of lawsuits.
Employment disputes: Employees may sue charter schools for issues such as wrongful termination, discrimination, or harassment. EPLI can also provide coverage for employment-related claims brought by employees. For example, if a teacher sues a charter school for wrongful termination, EPLI can help pay for legal fees, settlements, and judgments.
Student injuries: If a student is injured on school property or during a school-sponsored activity, the school may be sued for negligence. General liability insurance can provide coverage for claims related to student injuries. If a student is injured on school property or during a school-sponsored activity, general liability insurance can help pay for medical expenses, legal fees, settlements, and judgments resulting from a lawsuit.
Contract disputes: Charter schools may be sued for breach of contract by vendors or service providers. Charter schools can purchase errors and omissions (E&O) insurance to protect against claims of professional negligence or errors. If a vendor sues a charter school for breach of contract, E&O insurance can help pay for legal fees, settlements, and judgments.
Financial mismanagement: Charter schools may be sued by parents, taxpayers, or other stakeholders for financial mismanagement, fraud, or other financial improprieties. Directors and officers (D&O) insurance can provide coverage for claims related to financial mismanagement or fraud. If a charter school is sued by parents or taxpayers for financial improprieties, D&O insurance can help pay for legal fees, settlements, and judgments.
Overall, insurance can be an important tool for charter schools to manage their risk and protect themselves from potential lawsuits. By choosing the right insurance coverage and working with an experienced insurance broker, charter schools can help ensure that they are adequately protected in the event of a lawsuit.
Commercial Insurance And Business Industry Classification
- SIC CODE: 8211 Elementary and Secondary Schools
- NAICS CODE: 611110 Elementary and Secondary Schools
- Suggested Workers Compensation Code(s): 8868 School - Professional Employees & Clerical, 9101 School - All Other Employees, 7380 Drivers, Chauffeurs, Messengers, and Their Helpers NOC - Commercial
Description for 8211: Elementary and Secondary Schools
Division I: Services | Major Group 82: Educational Services | Industry Group 821: Elementary And Secondary Schools
8211 Elementary and Secondary Schools: Elementary and secondary schools furnishing academic courses, ordinarily for kindergarten through grade 12. Included in this industry are parochial schools and military academies furnishing academic courses for kindergarten through grade 12, and secondary schools which furnish both academic and technical courses.
- Academies, elementary and secondary schools
- Boarding schools
- Finishing schools, secondary
- High schools
- Military academies elementary and secondary level
- Parochial schools, elementary and secondary
- Preparatory schools
- Schools for the physically handicapped, elementary and secondary
- Schools for the disabled
- Schools, elementary and secondary
- Seminaries, below university grade
- Vocational high schools
Charter School Insurance - The Bottom Line
The cost for this type of insurance policy varies. Commercial insurance providers take several factors into consideration when calculating costs, including the size of your school and the risks that are associated with operating it. Additionally, the amount of coverage you will need, payroll and employee size can also affect the price.
Additional Resources For Education, Colleges, Universities & Schools Insurance
Learn about small business commercial insurance for educators that helps protecting your professional reputation and other legal liabilities arising from your educational services.
- Art School
- Beauty School
- Charter School
- Chiropractic Schools
- Colleges, Universities & Professional Schools
- Driving Schools
- Educational Services
- Language School
- Music Schools
- Private Schools
- Real Estate School
- Specialty Schools And Education
Education, colleges, universities, and schools are integral parts of our society, responsible for shaping the minds and futures of our youth. These institutions have a significant impact on the community and play a vital role in the growth and development of our society.
However, as with any business, education institutions also face a variety of risks and challenges. These risks can range from accidents and injuries on campus to financial loss due to lawsuits or property damage.
In order to protect against these risks and ensure that they can continue to provide high-quality education to their students, it is essential for education institutions to have business insurance. This insurance can provide coverage for a variety of potential issues, including:
Liability: If a student is injured on campus or a teacher is sued for misconduct, education institutions can be held liable. Liability insurance can provide coverage for legal fees and settlements, helping to protect the institution's financial stability.
Property damage: Natural disasters, fires, and other unexpected events can cause significant damage to education institutions. Commercial property insurance can provide coverage for repairs and replacements, helping to minimize the financial impact of these events.
Loss of income: If an education institution is forced to close due to an unforeseen event, such as a pandemic, it can result in significant financial loss. Business insurance can provide coverage for lost income, helping to mitigate the impact on the institution's financial stability.
In conclusion, education institutions, such as colleges, universities, and schools, need insurance to protect against the various risks and challenges they face. This insurance can help to ensure that these institutions can continue to provide high-quality education and support to their students and communities.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Commercial Articles Floater, Computers, Valuable Papers and Records, General Liability, Directors and Officers, Employee Benefits, Professional, Umbrella, Business Auto Liability and Physical Damage, Hired and Nonownd Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Equipment Breakdown, Flood, Spoilage, Computer Fraud, Extortion, Animal Floater, Contractors' Equipment, Fine Arts, Musical Instruments, Theatrical Floater, Cyber Liability, Employment-related Practices, Stop Gap Liability and Active Shooter.