What is it?
This coverage provides professional liability to protect an educational institution, its management team, and other employees during their institutional duties from claims arising out of actual or alleged wrongful acts or another breach of duty. The policy covers indemnity and defense costs; this specialty coverage usually offers additional endorsements such as non-monetary relief and employment practices liability.
Employment practices liability claims include allegations such as wrongful termination, sexual harassment, and discrimination. Non-monetary relief is a defense-only coverage where a plaintiff injunctive relief. Most policies of this type are written on a claims-made basis.
Why do they need it?
Academic organizations have a high professional liability exposure. Claims arise from charges such as failing to provide an appropriate education, improper hiring and training practices, breach of contract, breach of confidentiality, and lack of adequate supervision. Governmental immunities or tort caps do not always protect schools from these claims.
The examples shown below list just a few of the many reasons why schools should carry E&O insurance.
- Many non-monetary claims arise from the Individuals with Disabilities Education Act (IDEA) when parents of children with special needs feel that their children’s specific educational requirements are not being addressed.
- Claims can occur when teachers either intentionally or unintentionally introduce material that is not age, race, or religious appropriate.
- Failure to maintain proper hiring and employment practices & procedures results in claims from staff and students.
- An exposure to breach of contract exists between the schools and teachers and the schools and outside vendors.
What does it cover?
Claims arising out of actual or alleged:
- Wrongful acts
- Errors & omissions
- Breach of contract
- Negligent employment practices
- Claims seeking non-monetary relief
Educators Errors & Omissions coverage protects the insured educational entity and other individuals named in suits who are insured on the E&O policies.
