Microschool Insurance Policy Information
Microschool Insurance. The growing popularity of micro schools in the US and other parts of the world now means that, like any other institution, they also need insurance. Schools generally require business insurance, and while the type of school will govern what kind of insurance policy or policies they should get - and microschools are a bit different.
To understand microschool insurance and its importance, it is worth starting with understanding what micro schools are and the possible risks they face.
Like any other business, microschools are bound to be faced with a couple of risks. Insurance needs to step in to foot the bill when something like an accident happens.
That's why it is important to start with understanding the potential risks involved with the day-to-date operation of a microschool.
Microschool insurance protects your small educational program from lawsuits with rates as low as $57/mo. Get a fast quote and your proof of insurance (certificate) now.
What Is A Microschool?
Microschools happen to be a reimagined take on traditional education to help prepare children for future challenges. As the term "micro" suggests, the schools are small, privately owned institutions where students can personalize their education and are accountable for their progress.
Many in the education industry describe this as outsourced homeschooling, mainly because it is free from standardized tests, red tape, and having to sit through a mandatory curriculum that defines the current schooling system.
Microschools have to be run efficiently, but the upside is that student engagement is comparatively high compared to the public schooling system. Then there is also the fact that anyone motivated enough to teach and make money can open a school.
While everyone has varying motives for entering the education industry, most people get into it because it helps them escape the inefficient public school system.
People also want to offer youngsters better opportunities. They want to ensure that children have meaningful careers, which is why micro schooling is seen as a revolution, if not an evolutionary step forward.
Below are some answers to commonly asked micro school insurance questions:
- What Is Microschool Insurance?
- How Much Does Microschool Insurance Cost?
- Why Do Micro Schools Need Insurance?
- What Type Of Insurance Do Microschools Need?
- What Does Microschool Insurance Cover & Pay For?
What Is Microschool Insurance?
Microschool insurance is a type of insurance designed specifically for microschools, which are small, private schools with a focus on personalized education and close-knit communities. This insurance covers a wide range of risks and liabilities, including property damage, personal injury, liability for staff and students, and more. It is designed to protect microschools from financial loss due to unexpected events or incidents, and may also provide protection for legal fees, medical expenses, and other costs associated with a claim.
How Much Does Microschool Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for micro schools ranges from $57 to $79 per month based on location, capacity, services offered, payroll, claims history and experience.
Why Do Micro Schools Need Insurance?
Anyone planning to start a microschool or something similar like a learning pod, either during the pandemic or after it (now), will have a few legal considerations to ponder.
Since we aren't entirely done with COVID-19, one of the primary considerations will be exposure to the virus while operating the school, conventional injuries and child abuse/molestation coverages.
If you are currently in the process of planning to start a micro school, below are the most critical microschool insurance considerations.
What Type Of Insurance Do Microschools Need?
Because of the litigious nature of our society, micro schools are at risk of being sued by parents for accidents, injuries, or allegations of abuse or neglect.
Even if the legal action taken is fruitless and the suing party ends losing in court, the legal fees to defend itself from the claim(s) can be astronomical for micro schools.
Following is a list of the most common types of micro school insurance coverages that should be considered:
- General Liability. This type of coverage is an essential for any microschool that allows members of the public access to its premises. This coverage takes care of costs from injuries that third parties sustain on the premises, and it is a vital part of being insured as a day care provider. Even the smallest injuries, falls, or accidents can leave an uninsured provider digging in her own pocket to cover medical expenses.
- Premises Liability. Parking lots and play areas are notorious for accidents, and premises liability covers any such accidents for the education provider, paying medical costs and related claims that occur outside the actual facility, whether it's a broken arm from a fall from a swing or some other accident or injury.
- Commercial Auto. For microschools that use company vehicles to transport children, commercial auto insurance is essential. This insurance pays costs associated with property damage and injuries when day care employees are involved in accidents.
- Corporal Punishment Liability. Your school can be held liable if a worker strikes a child or administers corporal punishment. This type of coverage protects your business in the event of such a claim.
- Molestation And Abuse Liability. No small education provider wants to think that an employee is capable of such acts, but it does happen, and it leaves microschool owners open to abuse if they do not have liability coverage.
COVID-19 Exposure Liability Insurance
It is essential to start with the understanding that COVID-19 is a relatively new medical issue or virus. It is also one of the fastest evolving viruses killing people, and the courts have not entirely caught up with the legal liability it poses for businesses like microschools.
However, we like to be cautious and, in doing so, assume that there is no liability waiver for COVID-19 even if your students are fully vaccinated.
However, you can include a waiver with just about any contract, regardless of whether you hire a teacher or anyone else. But whether that can be enforced is an entirely different question. The same applies to any agreements with students or parents.
Most kids under the age of 18 in many states can't enter into a contract legally. Then there are some states which have outright said that COVID-19 waivers can't be enforced. If you are still hellbent on including a liability waiver, it may require hiring an attorney to handle it.
Personal Injury And Other Types of Liabilities
If the microschool or a learning pod happens to be meeting at home or your home, more importantly, or maybe even rotating houses, think if your insurance will cover a child injured on the property. What if the child gets injured on another person's property?
Other liabilities you need to consider are what type of cover you have if your dog bites a kid or teacher? What if the instructor(s) you hire slip and fall or has a car accident?
Generally, these events aren't covered under any existing policy and will require adding them. You may also want to buy separate microschool insurance policies.
Ideally, you will want to speak with your attorney to sort out which injuries are covered and which are not under the current microschool insurance policy.
An insurance agent can then help you sort out which microschool insurance policies you'll need to add to the existing policy to ensure air-tight coverage.
If you are a parent sending a kid to a micro school, you are still risking liability even if their own home isn't open to children. In many US states, parents will continue to be liable for a couple of acts their children may undertake.
For instance, if a child in your microschool injures a teacher, guardian, another student, or parent, that will cost money out of your pocket if the appropriate insurance coverage isn't in place. That is why you will also want to add personal injury coverage to your current stack of insurance policies. This should be so that it covers everyone.
If a microschool or your learning pod is meeting in a commercial space, maybe a space that's been rented for meetings like a storefront or apartment, you will need additional microschool insurance coverage. Plus, you will have to sign a lease and pay rent.
The person who signs the lease is the person who is liable for any violations of the lease. That means if you sign the lease for a micro-school, you will have to pay rent on the date due and cover any damages. That means you will also need renter's insurance.
Microschool Risks & Exposures
Premises liability exposures are extremely high due to the ongoing presence of young children. To prevent slips, trips, or falls, all areas must be well maintained with floor covering in good condition. The number of exits must be sufficient and well marked, with backup lighting in case of power failure. Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls.
The adult/child ratio should be low enough to permit adequate supervision. Evacuation drills should be conducted regularly. Procedures should be posted that address all emergencies, with instructors and aides trained in their use. References for all employees and volunteers must be verified, including criminal background checks. Access to the building must be limited during operating hours to prevent kidnapping and to keep children from wandering away. The procedures in place for delivery and pickup or release of children to adults must be followed very carefully.
Playground equipment must be well maintained to prevent injuries. Children learn by touching and sharing, which increases the spread of communicable diseases to others. Immunizations for each child should be required, along with emergency medical contact information. Written policies must be established that address when a child is too ill to attend and when the facility will contact parents or medical emergency providers in case of illness or an accident.
Abuse and molestation exposures must be considered when employees supervise children. The abuser is never covered under the center's policy. While there is some coverage for the facility where the abuse takes place, it is very limited. More comprehensive coverage should be purchased from specialized markets. The facility is responsible for taking all possible care to protect students from predatory adults and older students through background checks, monitoring, supervision, and by reporting all allegations of abuse to the proper authorities. The more vulnerable the potential victim, the more vigilant the facility must be.
Workers compensation exposures are high from hernias, back sprains, and strains from lifting, slips and falls, and exposure to communicable diseases. All employees should have up-to-date immunizations to prevent the spread of communicable diseases. Children can become unruly and injure employees by biting, hitting, kicking, and pulling hair or earrings. Employees should be trained in how to deal with these students and have access to emergency numbers in case of problems. Unauthorized visitors can pose a threat to employees as well as children.
Property exposures include an office, kitchen, classrooms, and outdoor play areas. Ignition sources include electrical wiring, stoves for cooking, and heating and air conditioning equipment. All wiring must be well maintained and up to code. Overriding circuit breakers and fuse boxes should not be allowed. The high volume of paper, craft supplies, toys and other items contribute to the spread of fire. Wood and/or plastic furnishings increase the fire load. Most equipment is susceptible to and easily damaged by fire. While food preparation is generally limited to stovetop or microwave cooking, any cooking increases the fire loss potential.
Crime exposures are primarily from employee dishonesty. Hazards increase without proper background checks. All job duties, such as ordering, billing, and disbursing, should be separate and reconciled on a regular basis. Receipts should be issued for cash payments received from parents. Bank deposits should be made on a timely basis to limit the buildup of cash on the premises. Audits should be performed at least annually.
Inland marine exposures are from accounts receivables if the center offers credit, computers, and valuable papers and records for students' records. Duplicates of all data should be made and stored off premises.
Commercial auto exposures are very high if the facility transports children to and from their homes or to off-premises activities. All drivers must have the appropriate license for the type of vehicle used to transport children and have acceptable MVRs. Car seats must be used as required by state law. Appropriate supervision should be provided when multiple children are transported. All vehicles must be properly maintained and maintenance records kept at a central location.
What Does Microschool Insurance Cover & Pay For?
Microschools, which are small, independent educational institutions that typically have fewer than 150 students, can be sued for a variety of reasons. Some common reasons microschools are sued include:
- Personal injury claims: If a student is injured while attending a microschool, the school may be held liable. For example, if a student slips and falls on a wet floor, the school may be sued for negligence.
- Discrimination claims: Microschools can be sued for discrimination if they are accused of treating students or employees unfairly based on their race, gender, religion, or other protected characteristic.
- Contract disputes: Microschools may be sued for breach of contract if they fail to fulfill their obligations under a contract with a student or parent, such as failing to provide promised educational services.
- Employment disputes: Microschools may be sued by current or former employees for a variety of reasons, including wrongful termination, discrimination, or harassment.
Insurance can help protect microschools from the financial impact of these types of lawsuits. Some common types of insurance that microschools may purchase include:
General liability insurance: This type of insurance can help cover the costs of personal injury claims against the school, such as medical expenses and legal fees.
Employment practices liability insurance: This type of insurance can help cover the costs of employment-related claims against the school, such as discrimination or harassment claims brought by employees.
Professional liability insurance: Also known as errors and omissions insurance, this type of insurance can help cover the costs of lawsuits related to the school's educational services, such as claims of educational malpractice.
Property insurance: This type of insurance can help cover the costs of damage or loss to the school's property, such as damage from a fire or theft.
For example, if a student is injured while attending a microschool and sues the school for negligence, the school's general liability insurance could help cover the costs of the lawsuit, including any settlement or judgment. Similarly, if a former employee sues the school for wrongful termination, the school's employment practices liability insurance could help cover the costs of the lawsuit. In each case, the specific coverage provided by the insurance policy would depend on the terms and conditions of the policy.
Commercial Insurance And Business Industry Classification
- SIC CODE: 8351 Child Microschool Services
- NAICS CODE: 624410 Child Microschool Services
- Suggested Workers Compensation Code(s): 8869 Child Care Center - All Employees Including Clerical, Salespersons & Drivers
8351: Child Microschool Services
Division I: Services | Major Group 83: Social Services | Industry Group 835: Child Microschool Services
8351 Child Microschool Services: Establishments primarily engaged in the care of infants or children, or in providing prekindergarten education, where medical care or delinquency correction is not a major element. These establishments may or may not have substantial educational programs. These establishments generally care for prekindergarten or preschool children, but may care for older children when they are not in school. Establishments providing babysitting services are classified in Industry 7299. Head Start centers operating in conjunction with elementary schools are classified in Industry 8211.
- Child care centers
- Day care centers, child
- Group day care centers, child
- Head Start centers, except in conjunction with schools
- Nursery schools
- Preschool centers
Microschool Insurance - The Bottom Line
In addition to the microschool insurance types mentioned above, you'll also require some form of employee health insurance, and maybe group insurance can be considered. Generally, school staff in the US need to have health and liability insurance.
The best way to ensure there are no holes in your micro school insurance coverage is to speak with an attorney and insurance agent. Most insurance agents should be able to highlight if there are gaps and offer a solution based on that.
Your attorney can then read the agreements to ensure that you don't end up paying for something out of pocket that you are not aware of before signing the agreement.
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.