Driving School Insurance Policy Information
Driving School Insurance. Driving schools play an absolutely crucial part in equipping learners with the knowledge and skills they will need to become competent and safe drivers.
Driving education consists of two portions. The theoretical part of learning to drive may take place in a classroom at the driving school, or even online.
The practical portion will most excite students who are learning to drive, however - and here, driving schools typically employ vehicles that are equipped with dual controls to ensure everyone's safety as students take their first steps into the world of driving on the same roads experienced drivers use.
Automobile driving schools teach students how to safely operate a motor vehicle and meet their state's licensing requirements. Students must complete a certain number of hours of classroom instruction, which may include computer simulation and testing, plus a certain number of hours actually operating an automobile under the supervision of the instructor.
Some schools offer the classroom instruction online at the student's convenience, followed by instructor-supervised on-the-road training.
Automobile driving schools work with teenagers and adults attempting to obtain an operator's license for the first time, licensed individuals who wish to improve their driving skills, and individuals who have lost their driving privileges and must pass a state-approved course in order to regain them.
Owning and operating a driving school can be highly rewarding, as well successful and profitable. As new generations will continue to rely on cars and the skills to drive them, this sector is also fairly stable.
Like all other branches of commerce, however, driving schools face risks. What types of driving school insurance are need to protect themselves in the event that they encounter unforeseen, catastrophic, circumstances? To find out more, read on.
Driving school insurance protects your driving instruction business from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked driving instruction insurance questions:
- What Is Driving School Insurance?
- How Much Does Driving School Insurance Cost?
- Why Do Driving Schools Need Insurance?
- What Type Of Insurance Do Driving Schools Need?
- What Does Driving School Insurance Cover & Pay For?
What Is Driving School Insurance?
Driving school insurance is a specialized form of insurance designed for driving schools and their instructors. It provides coverage for physical damage to vehicles, liability for any harm caused to students or other drivers during lessons, and protection against other potential liabilities such as property damage or personal injury claims.
It also covers instructors for any legal or medical expenses incurred in the event of an accident. The coverage can vary depending on the type of driving school and the level of insurance purchased, but it typically provides peace of mind for both the school and its instructors.
How Much Does Driving School Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small driving schools ranges from $37 to $59 per month based on location, size, revenue, claims history and more.
Why Do Driving Schools Need Insurance?
While you will, as the owner of a driving school, do everything in your power to ensure that the driver's ed you provide is comprehensive and responsible while simultaneously minimizing your risks, the harsh reality is that you never know when you will be struck by a major peril.
Driving schools operate in the shadow of the same hazards all businesses face, as well as needing to consider some industry-specific risks.
A road traffic accident could take place while an instructor is giving a driving lesson, for example, a scenario that can end with devastating human as well as financial losses regardless of who was at fault. Even when nobody is hurt, small accidents will cause a driving school to incur significant repair costs.
In terms of liability, driving schools also need to have the possibility that a driving instructor will be accused of negligent or harmful conduct in mind. This can happen even if the instructor did nothing wrong.
Alongside these risks that are unique to driving schools, these businesses may be impacted by acts of nature (hurricanes, wildfires, hailstorms, and so on), theft, vandalism, or accidents, such as fires, that impact their commercial premises.
Each of these perils has the potential to severely damage your financial health - and that is why insurance is so crucial. By investing in a comprehensive driving school insurance plan, you will know that even truly ruinous events do not need to spell the end for your driving school.
What Type Of Insurance Do Driving Schools Need?
Your personal path to full coverage may be just as challenging to navigate as the road is to learning drivers. Numerous factors, from your location to the size and value of your fleet and your number of employees, will ultimately determine what amounts to a comprehensive insurance plan for your driving school.
To make the process easier and to make sure you miss nothing, it is vital to consult a commercial insurance broker who is familiar with your industry. With that in mind, among the key forms of driving school insurance needed are:
- Commercial Property - The heart of your business may lie on the road, but your commercial building may still be impacted by perils ranging from burglary to natural disasters - which can cause truly massive damage that leads to enormous repair and replacement costs. Commercial property insurance covers your building and the assets within when disaster strikes.
- Commercial General Liability - Nearly all businesses need commercial general liability insurance, which offers protection in the event that someone is injured on your premises or your company's activities damage third party property. In case of lawsuits, this driving school insurance covers your attorney fees and settlement expenses.
- Commercial Auto - This kind of insurance covers a variety of liability risks relating to your commercial vehicles; personal injury protection, uninsured motorist coverage, and medical payments, for example. It is among the most vital forms of coverage for driving schools.
- Workers' Compensation - Should an employee sustain a work-related injury, workers comp pays their medical bills as well as covering any wages they lose if they require time off to recuperate.
Driving instructors looking for the best insurance to safeguard their business from the impact of major perils should be aware that they may also need other kinds of driving school insurance coverage. For further information, talk to a commercial insurance broker.
Driving School's Risks & Exposures
Premises liability exposures are moderate due to access by students and other visitors. To reduce the potential for slips and falls, floor coverings must be in good condition. Steps and uneven floor surfaces should be prominently marked. Because evening classes are offered, there should be sufficient exits with backup lighting systems in case of power failure.
Parking lots and sidewalks should be kept free of ice and snow. All instructors should meet all state regulations. If the state requires certifications and/continuing education, a monitoring procedure should be in place. If contract instructors are used, a written contract should clearly detail their responsibilities and expectations.
Instructors under contract should be monitored in the same way as employee instructors. Personal injury exposures include alleged assault and battery, discrimination, and invasion of privacy.
Abuse and molestation exposures are high when instructors work with minors. No coverage is available to the abuser. While there is some coverage available in the standard market for the school where the abuse or molestation takes place, it is very restricted.
The school should purchase broader coverage from specialized markets. The school must take all care possible to protect students from predatory adults, using background checks, monitoring and supervision, and reporting all allegations of abuse to the proper authorities.
Workers compensation exposures can be high from the use of automobiles by students and altercations with abusive clients. There should be dual controls in student-driven vehicles so instructors can quickly intervene in an unsafe driving situation.
The school should develop and implement measures to maintain contact with its instructors while they are providing instruction in vehicles on the road. There should be written procedures to follow in the event of an accident. Employees should be trained to handle unruly clients.
Property exposures are light. Ignition sources are generally limited to electrical wiring, heating and air conditioning systems. All wiring must be well maintained and up to code. If automobiles are garaged and/or serviced on premises, the exposure increases due to flammable gasoline and oil which should be stored away from combustibles.
The building may be damaged by vehicle collision as students may be inexperienced in controlling an automobile. Business income may be needed after a loss if backup facilities are not readily available.
Crime exposures are from employee dishonesty and theft of money and securities. Background checks should be conducted on any employee handling money. If cash is received for tuition, receipts should be provided.
Bank deposits should be made on a timely basis to prevent the buildup of cash on premises. Duties must be separated and books must be audited both internally and externally on at least an annual basis.
Inland marine exposures are from accounts receivable for payments from students, computers, mobile equipment, and valuable papers and records for students' information. All records should be duplicated and stored off-site. Mobile property may be carried in instructors' vehicles or taken to exhibition locations.
Commercial auto exposures are extensive as vehicles are used by inexperienced drivers. All vehicles used for instruction should have dual controls and be clearly marked as drivers' education vehicles to alert other drivers on the road. All instructors must have the appropriate license and acceptable MVRs. All vehicles must be well maintained with records kept at a central location.
What Does Driving School Insurance Cover & Pay For?
Schools may face various types of lawsuits, and insurance can help protect them from the financial consequences of such legal actions. Here are some examples of reasons schools may be sued and how insurance can help:
Personal injury claims: Schools may face lawsuits from students or visitors who have been injured on their premises. This could be due to slip-and-fall accidents, playground injuries, or other incidents. Liability insurance can help pay for legal defense costs and any damages awarded to the injured party.
Bullying or harassment claims: Schools may be held responsible for instances of bullying, harassment, or discrimination that occur on their premises or during school-related activities. Professional liability insurance can help cover the costs of legal defense and settlements or judgments.
Employment disputes: Schools may face lawsuits from employees, such as teachers or staff members, for issues such as wrongful termination, discrimination, or harassment. Employment practices liability insurance (EPLI) can help cover the costs of legal defense and any damages awarded.
Copyright infringement: Schools may be sued for copyright infringement if they use copyrighted material without permission or proper attribution. Copyright liability insurance can help cover legal costs and any damages awarded.
Student misconduct: Schools may be sued for incidents involving student misconduct, such as assault, theft, or vandalism. General liability insurance can help cover legal defense costs and any damages awarded.
In summary, insurance can help protect schools from the financial impact of lawsuits by covering legal defense costs and any damages awarded. It's essential for schools to work with insurance professionals to identify the types of coverage they need to adequately protect themselves against potential legal claims.
Commercial Insurance And Business Industry Classification
- SIC CODE: 8299 School And Educational Services, Not Elsewhere Classified
- NAICS CODE: 611692 Automobile Driving Schools
- Suggested Workers Compensation Code(s): 9101 School - All Other Employees
Description for 8299: School And Educational Services, Not Elsewhere Classified
Division I: Services | Major Group 82: Educational Services | Industry Group 829: Schools And Educational Services, Not Elsewhere
8299 School And Educational Services, Not Elsewhere Classified: Establishments primarily engaged in offering educational courses and services, not elsewhere classified. Included in this industry are music schools, drama schools, language schools, short-term examination preparatory schools, student exchange programs, curriculum development, and vocational counseling, except rehabilitation counseling. Establishments primarily engaged in operating dance schools are classified in Industry 7911, and those providing rehabilitation counseling are classified in Industry 8331.
- Art schools, except commercial
- Automobile driving instruction
- Baton instruction
- Bible schools, not operated by churches
- Ceramics schools
- Charm schools
- Civil service schools
- Continuing education programs
- Cooking schools
- Curriculum development, educational
- Diction schools
- Drama schools
- Finishing schools, charm and modeling
- Flying instruction
- Hypnosis schools
- Language schools
- Modeling schools, clothes
- Music schools
- Personal development schools
- Public speaking schools
- Reading schools
- Speed reading courses
- Student exchange programs
- Survival schools
- Tutoring
- Vocational counseling, except rehabilitation counseling
Driving School Insurance - The Bottom Line
To learn more about the specific types of driving school insurance policies you'll need, and how much coverage you should have and the premiums, consult with a reputable broker that is experienced in commercial insurance.
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
- Microschools
- Music Schools
- Private Schools
- Real Estate School
- Tutoring
- 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.
