Across the globe, international schools face a growing range of risks and hazards that require proper protection. This is even more so these days, as schools tend to have the latest technologies and equipment, and more students are engaging in extracurricular activities. As a result, one mishap could be all it takes to negatively affect your school’s balance sheets.
Various threats can affect schools, from natural disasters to cyberattacks and theft. Therefore, it is imperative for international schools to have a solid insurance plan as part of their risk management strategy. But with so many insurance plans to choose from, how do you know which ones will be best for your school?
Whether or not you already have insurance in place, here are the most common plans for international schools to help you secure adequate protection.
The 7 most common insurance plans for international schools
When it comes to insurance, a one-size-fits-all approach doesn’t exist - and the same goes for international school insurance. For instance, property insurance may be a priority for schools looking to safeguard their valuable assets, while others may prioritize cyber insurance for protection against data breaches and theft.
While schools can personalize and structure their plans to match their unique needs and requirements, different schools still share some crucial commonalities. The following are the must-have school insurance solutions that are recommended for all international and private schools.
If your school had to pick just one type of insurance, it should be property insurance. After all, severe property damage can potentially destroy a school. Property insurance protects the school’s building and contents against unforeseen damage/loss, such as those caused by a fire or blood.
When selecting a property insurance policy, you should check whether it offers enough coverage to protect your school against potential financial risks if serious property damage occurs. Consider increasing your limits if the coverage isn’t adequate so you can be prepared for unforeseen events.
Fire, typhoons, and other serious perils may impact your school’s daily operations, resulting in significant gross profit loss. Meanwhile, schools must still pay for expenses like staff salaries. That’s where business interruption insurance comes in, as it can protect schools against financial burdens such as these by covering additional costs (e.g., loss of revenue).
Public liability insurance
Over 65% of schools have public and school liability insurance coverage, making it the most common type of Property & Casualty coverage for schools. This type of insurance safeguards schools against legal liabilities due to accidental bodily injury to third parties who are not staff, including students, parents, visitors, and the general public.
It also compensates your school for claims made by third parties for death, as well as
property damage or destruction, such as visitors’ vehicles. It’s important to note that claims may be subject to an excess, or the amount the insured has to pay before submitting a claim.
If “failure to educate” claims are made against your school, professional indemnity can protect school management from this risk. Along with “failure to teach”, expulsions and general mismanagement claims are very common nowadays. Industry experts consider professional indemnity risks to be some of the most challenging to defend.
Cyber insurance is a must-have solution that covers the costs linked with data breaches, cyber extortion, theft, and forensics - to name a few. Some cyber insurance plans may cover funds the school needs to continue operating until their systems are repaired.
Directors & Officers liability insurance
Directors and officers (D&O) liability insurance covers legal liability for costs, expenses, and damages if any school director or officer attempts, commits, or allegedly commits a wrongful act when carrying out their duties.
Workers’ compensation and employers’ liability insurance
This insurance plan is designed to protect the school’s costs in the event that an employee suffers injury/disease or is killed at work if the school is at fault. In some countries, workers’ compensation and employers’ liability insurance are mandatory.
Recommended international school insurance solutions
Even though individual insurance requirements vary, the plans above are considered essential for any international school. Additionally, there are more advanced insurance solutions that are worth considering when selecting an insurance package for your school.
Typically secured in addition to the above solutions, the following plans are recommended for international schools looking for extra protection. While solutions will depend on your school’s needs, these supplemental products can further protect your educational institution.
A money insurance policy can help compensate for the loss of money due to unforeseen events like theft and robbery.
In the event of a total loss, machine breakdown insurance can help cover the costs of replacing equipment or repairs.
Crime insurance offers financial protection when it comes to computer fraud, employee theft, or forgery.
Group personal accident insurance can protect staff, students, administrators, and others if accidental injury and deliberate assault occur.
Kidnap & ransom insurance policies cover the costs associated with hijacking, kidnapping, and wrongful detainment.
Erection/construction insurance can be useful if the property is lost or damaged during contract work and construction.
Considering how intricate and unique school risks are, it is easy to understand why there isn’t a one-size-fits-all insurance plan. The good news is that it is possible to insure and protect your school against even the most complex cases. Since most international school leaders find insurance to be time-consuming, costly, and daunting, your best bet is to secure school insurance through a reputable insurance broker.
Get in touch for a free quote and consultation
As a global health insurance brokerage and employee benefits specialist, Pacific Prime works with hundreds of schools worldwide and helps them design and implement personalized school insurance solutions that meet their objectives. We source and compare plans, negotiate with insurers, conduct annual reviews, and more so that you can focus on what’s important.
To learn more about what we can do for you and your school, arrange a FREE consultation with a member of our corporate team today!
About the author:
Head of Corporate Sales for the Latin America region
Steven began his career with Pacific Prime in Shanghai in 2015 as a Sales Consultant. He was soon promoted to Business Development Manager for the Latin America region, whose role was to help set up an office in Mexico City. Today, Steven is the Head of Corporate Sales for Latin America, focusing on SMEs and large corporate accounts, including several international schools. Originally from Colombia, Steven has lived in Canada, China, and Mexico. He has a Bachelor’s degree in Business and International Trade from Donghua University and speaks fluent English, Chinese, and Spanish.