Private School Insurance Policy Information
Private School Insurance. Millions of students, from kindergarten through grade 12, are enrolled in private schools across the United States. Since the world turned upside-down in in March of 2020, that number has increased exponentially and it is expected to continue increasing.
Private schools provide educational services to students in kindergartens, elementary schools, secondary schools, colleges, and universities. There may be programs for special needs or at-risk students and adult education, including in-home instruction by visiting teachers.
Unlike public schools, which are required to provide services to all eligible students within a particular geographical area, private schools can be selective in accepting students.
Before-school or after-school day care services may be provided to working parents. Transportation to and from school may be available but is not legally required. Transportation may also be offered for field trips, performances, or sporting events.
Private schools are normally sponsored and funded by a specific organization, such as a church, and may have a specific academic emphasis, such as college preparatory, alternative teaching approaches, or military. Students must pay tuition to attend, but scholarships or fee reductions may be offered.
Additional funding comes from fees, sales of books and other supplies, and fundraisers. Some private schools (called "charter schools") receive funding from tax dollars but are independent of many regulations that govern public schools.
Private schools are invaluable for the students the serve, their parents, and their communities at large. In order to service the increased demand for private school education in the United States, you might be thinking about establishing your own private school.
When you are making arrangements to start your private school, there is a lot that needs to be done. From planning the curriculum to hiring and training the most qualified faculty and staff and from ensuring that you have the equipment that's needed and that your facility is safe and properly organized; there are so many things on your list of things to do.
There's one more thing that you need to include on that list that you aren't going to want to overlook: making sure that you are properly insured.
Why do private schools need to be insured? What type of private school insurance policies do you need to carry? Read on to find out more about protect yourself, the students, and the faculty of your school.
Private school insurance protects educational institutions 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 private school insurance questions:
- How Much Does Private School Insurance Cost?
- Why Do Private Schools Need Insurance?
- What Type Of Insurance Do Private Schools Need?
How Much Does Private School Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small private schools ranges from $37 to $59 per month based on location, size, revenue, claims history and more.
Why Do Private Schools Need Insurance?
As the owner and operator of a private school, you are responsible for providing your students with a safe learning environment. You are also responsible for providing your faculty and staff with a safe work environment. Furthermore, you are tasked with maintaining the facilities, the equipment, and the tools that are associated with your institution.
In the event that something goes wrong - a student or a teacher sustains an injury on the grounds of the school or the property is damaged, for example - you are liable for the costs that are related to any medical care, legal fees, compensation, and repairs that may be associated with the mishap.
As you can imagine, these costs can be quite exorbitant, and if you have to pay for those expenses out of your own pocket, you could be looking at serious monetary losses. If you're properly insured, however, if a mishap occurs, the company that holds your policies will cover the related costs.
In other words, insurance can help to protect you from major financial losses. Plus, in order to operate legally, private schools must be properly insured; if you fail to carry mandated private school insurance polices, you could be looking at stiff penalties and may even end up having your school closed down.
What Type Of Insurance Do Private Schools Need?
The specific type of coverage that a private school will need depends on several factors; where the facility is located (as mandated insurance requirements vary from location to location), the size of the facility, and the type of equipment and services that are offered, for example.
With that said, however, there are certain types of private school insurance coverage that are needed. To make sure that you are adequately covered, you're going to want to invest in the following policies:
- Commercial Property: This type of policy will cover the buildings, grounds, and the property that is contained within them against natural disasters, acts of vandalism, and theft. For instance, if a storm were to knock a tree down on one of your buildings, this policy would cover any repairs that might be needed.
- General Liability: This private school insurance policy covers third-party physical and personal injury and property damage claims that may be filed against your school.
- Workers Compensation: If your school has employees will need to carry workers' comp. In the event that an employee suffers a work-related accident or injury, in circumstances that indicate your company could be held liable, it covers the employee's medical expenses along with wages lost to related work absences.
- Educators Legal Liability: Should a student or another staff member file a lawsuit against one of the teachers on your staff, claiming that he or she engaged in wrongdoing (whether true or not), this type of policy will cover legal defense and settlement fees.
To find out exactly what type of private school insurance policies you should invest in to make sure that your institution is properly insured, speak with a reputable and experienced insurance agent.
Private School's Risks & Exposures
Premises liability exposures are extremely high due to the age and number of students on premises. Exposures are higher when the students are minors or are physically, mentally, or emotionally challenged. The ratio of adults to students should be adequate for proper supervision. Corporal punishment should not be permitted.
If several grade levels attend the same premises, older children should be kept apart from younger children to prevent bullying and other inappropriate behavior. Furnishings and recreational equipment must be well maintained to prevent injury to students.
Slips and falls can be prevented with good housekeeping and by maintaining floor coverings in good condition, with no frayed or worn spots on carpet and no cracks or holes in flooring, and prompt cleanup of spills.
Sufficient exits must be provided and be well marked, with backup lighting systems in case of power failure.
Swimming pool drains should be protected to prevent entrapment. Someone trained to rescue endangered swimmers should be on duty when students are in the pool.
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. There should be signage directing parents where to drop off and pick up students. Procedures for all emergencies should be posted, with employees trained to use them. Evacuation drills should be practiced on a regular basis.
Security issues are becoming more critical in educational settings. All adults' references must be verified, including a criminal background check. Except for authorized police or security guards, weapons should be prohibited at the school to prevent unauthorized use.
Access to the building must be limited during the hours of operation to prevent unauthorized access, kidnapping, and students escaping. Pickup or release of any child must be limited to authorized individuals only.
Because younger children, in particular, learn by touching and sharing, communicable diseases can be spread quickly to other students. Children and staff should be encouraged to wash hands regularly. Furnishings and toys should be regularly sanitized.
Immunizations should be required for each student, along with an emergency medical contact. There should be written policies regarding when a student is too ill to attend school, and when the facility will contact parents or medical emergency providers in the event of illness or an accident.
If the school has an on-premises medical clinic or police staff, professional liability coverage may be needed.
Off-premises exposures can include athletic or academic competitions, musical or theatrical performances, field trips, class trips, overseas semesters, and research and development activities.
Personal and advertising injury exposures include allegations of discrimination, failure to prevent intimidation, humiliation, hazing or bullying by teachers or other students, false arrest or detention, invasion of privacy, slander, and libel from publishing or broadcasting activities, unauthorized or intrusive searches, and wrongful expulsion.
Exposures may also arise from professor publications, including research stealing and disputes and copyright or patent infringement. Written procedures should be in place regarding how the school will intervene when a person is accused of being engaged in any of these.
Abuse and molestation exposure is very high due to the care and supervision of children. No coverage is available for the abuser. While there is some coverage available in the standard market for the school where the abuse takes place, it is very restricted.
More complete coverage should be purchased through specialized markets. The school must take all care possible to protect students from predatory adults and older students through background checks, monitoring and supervision, and prompt reporting of all allegations of abuse to the proper authorities.
Directors and officers exposure arise from the decisions and actions of board members. Policies and procedures should be published and consistently followed, especially as they relate to election and removal of officers.
Professional liability exposure is high due to the number of principals, teachers, counselors, nurses, or doctors employed by the school. Verification of professional credentials is critical. Educational standards must be in writing and meet all criteria for state and federal licensing and accreditation.
Workers compensation exposure is moderate. Employees may need to intervene in student altercations, subjecting themselves to possible harm. Teachers can incur back injuries, hernias, sprains and strains from lifting, foreign objects in the eye, trips or falls over misplaced items, of being hit by falling objects.
Use of computer keyboards can result in repetitive motion injuries. Workstations should be ergonomically designed. If food is prepared on premises, kitchen workers can incur cuts, scalds, and burns. Custodians can develop respiratory ailments or contact dermatitis from working with chemicals.
Instructors often travel with students and may intervene to prevent them from getting injured. Exposure to communicable disease can be high. All employees should have up-to-date immunizations to prevent the spread of communicable disease. Unauthorized visitors can pose a threat to employees as well as students.
Property exposure is moderate. Ignition sources include electrical wiring, heating and air conditioning systems, and cooking equipment. All wiring should be well maintained and up to code. Business personal property includes flammable paper, books, craft supplies, wood, and/or plastic furnishings.
Stoves used in cooking in home economics, wood and metal working in shop or art classes, and chemicals and burners used in chemistry classes increase the exposure to fire. Flammables used for class and for cleaning must be stored in approved containers away from combustibles. Extinguishing equipment must be easily accessible. If meals are offered to students, all cooking equipment must be properly protected.
Housekeeping must be excellent. If there are dormitories, smoking and the use of candles in rooms should be prohibited. Hard-wired smoke detectors should be installed in all dorm rooms as well as in shared areas.
Schools are often targets for vandalism and malicious mischief. There should be after-hours security to prevent unauthorized access to the premises.
Business income exposure can be high if a specialized classroom building, dormitory, research facility, theater or concert hall, stadium or arena is shut down after a loss. A disaster plan should be in place identifying temporary facilities and suppliers that could be used in the event of a loss.
Crime exposure is from employee dishonesty and theft of money and securities. Background checks should be performed on all employees handling money. If cash is received for tuition or from donations, receipts should be provided. Bank deposits should be made on a timely basis to prevent the buildup of cash on premises.
All job duties, such as ordering, billing, and disbursement, should be separate and reconciled on a regular basis. External audits should be conducted at least annually.Should students assist in collecting cash in concession stands or for special events, there must be adequate supervision to prevent pilfering.
Inland marine exposure includes accounts receivable for payments from donors, parents and students, audio-visual equipment for items transported between classrooms, computers for offices and classrooms, contractors' equipment for machinery used to maintain the premises, and valuable papers and records for students' records and library materials.
Duplicates should be made of all data and kept off premises. Computers may be issued to students for use at home, increasing off-premises exposures. There may be fine arts, including paintings, sculptures, and antiques.
Security should be appropriate for the value of the items. Musical instrument coverage may be needed if the school owns instruments that are taken home by students or used off premises in performances.
Business auto exposure is very high if kindergarten, elementary and secondary schools regularly transport students. All drivers must have the appropriate license for the type of transport and acceptable MVRs that must be checked regularly. In some states, approved child seats and seat belts must be used when the vehicle is in motion.
Supervision must be appropriate for the students when traveling. Drivers must verify that all students have been dropped off before garaging the vehicle at the end of the day. There must be procedures in place regarding trips, length of travel, sleep time for drivers and backup plans in case the driver becomes ill.
All vehicles must be well maintained, and records kept at a central location.
Commercial Insurance And Business Industry Classification
- SIC CODE: 8211 Elementary And Secondary Schools, 8221 Colleges, Universities, And Professional Schools, 8222 Junior Colleges And Technical Institutes, 8249: Vocational Schools, Not Elsewhere Classified
- NAICS CODE: 611110 Elementary and Secondary Schools, 611210 Junior Colleges, 611310 College, Universities and Professional Schools, 624310 Vocational Rehabilitation Services
- Suggested ISO General Liability Code(s): 67509 Schools - Colleges, Universities, Junior Colleges or College Preparatory Not-For-Profit Only, 67508 Schools - Colleges, Universities, Junior Colleges or College Preparatory Other Than Not-For-Profit, 67511 Schools - Dormitory Facilities - Not-For-Profit Only, 67510 Schools - Dormitory Facilities - Other Than Not-For-Profit, 47476 Schools - Private - Elementary, Kindergarten or Junior High - Not-For-Profit Only, 47475 Schools - Private - Elementary, Kindergarten or Junior High - Other Than Not-For-Profit, 47478 Schools - Private - High - Not-For-Profit Only, 47469 Schools - Faculty Liability For Corporal Punishment Of Students, 47477 Schools - Private - High - Other Than Not-For-Profit
- Suggested Workers Compensation Code(s): 8868 School - Professional Employees & Clerical, 9101 School - All Other Employees, 7380 Drivers, Chauffeurs, Messengers, and Their Helpers NOC - Commercial
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
8221: Colleges, Universities, and Professional Schools
Division I: Services | Major Group 82: Educational Services | Industry Group 822: Colleges, Universities, and Professional Schools
8221: Colleges, Universities, and Professional Schools: Colleges, universities, and professional schools furnishing academic courses and granting academic degrees. The requirement for admission is at least a high school diploma or equivalent general academic training.
- Colleges except junior
- Professional schools: eg dental engineering law medical
- Seminaries theological
- Service academies (college)
- Theological seminaries
8222: Junior Colleges and Technical Institutes
Division I: Services | Major Group 82: Educational Services | Industry Group 822: Colleges, Universities, and Professional Schools
8222: Junior Colleges and Technical Institutes: Junior colleges and technical institutes furnishing academic, or academic and technical, courses and granting associate academic degrees, certificates, or diplomas. The requirement for admission is at least a high school diploma or equivalent general academic training. Schools having junior college grades in conjunction with secondary grades are classified in Industry 8211.
- Community colleges (junior)
- Junior colleges
- Technical institutes
8249: Vocational Schools, Not Elsewhere Classified
Division I: Services | Major Group 82: Educational Services | Industry Group 824: Vocational Schools
8249 Vocational Schools, Not Elsewhere Classified: Establishments primarily engaged in offering specialized vocational courses, not elsewhere classified. Also included in this industry are establishments primarily engaged in furnishing educational courses by mail. Offices maintained by such schools for the sale of correspondence courses are included. Beauty schools are classified in Industry 7231, and barber schools are classified in Industry 7241. Establishments primarily engaged in offering flying instruction are classified in Industry 8299. Schools offering academic degrees are classified in Industry Groups 821 and 822.
- Aviation schools, excluding flying instruction
- Banking schools (training in banking)
- Commercial art schools
- Construction equipment operation schools
- Correspondence schools, including branch offices and solicitors
- Nursing schools, practical
- Real estate schools
- Restaurant operation schools
- Trade schools
- Truck driving schools
- Vocational apprenticeship training
- Vocational schools: except high schools, data processing, or business
Private School Insurance - The Bottom Line
To protect your institution, employees and students, having the right private school insurance coverage is essential. To learn about the types of policy options are available to you, how much coverage you should invest in and the cost - speak to a reputable commercial insurance broker.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.
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
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.
Educators' Legal Liability (ELL) coverage provided by insurers may have significant differences. It is important to compare what is available to meet the exposures and financial needs of a given educational institution or school district. Different ELL forms may even have substantially different insuring agreements. There are three main types of insuring agremeements in ELL policies:
Insuring Agreement A: The language in this agreement refers to coverage being provided contingent on receiving the policy premium. It states that coverage is subject to all relevant policy provisions. The carrier also states that the policy issuance is a result of completely relying on the accuracy of the information provided by the applicant/insured. This agreement refers to a Self Insured Retention .
Insuring Agreement B: This company's agreement is worded similarly to the language found in most standard commercial policies. It states that the company will pay on behalf of an insured that faces an allegation of performing a wrongful act. It also states that it will not respond to acts that occur before either the policy's effective date or the applicable retroactive date.
Insuring Agreement C: The language in this carrier's agreement is more specific. It makes reference to paying on behalf of an insured due to liability involving eligible, education operations acts. It also contains wording that reflects its claims-made basis of coverage.
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.