Charter schools are quickly becoming a preferred education forum for parents, students, and even teachers. If you plan on opening a charter school or in the process right now, you are certainly aware of the lengthy application process involved. One of the critical items addressed on each application is the necessary insurance for a new charter school and the costs associated with each policy. While each state has its own insurance requirements regarding policies, coverages, and limits, there are still several similarities between each one.
Required Insurance Coverages
The following is a list of the most common insurance coverages required for charter schools by state departments of education (in alphabetical order):
Abuse/Molestation Coverage
Provides defense and indemnity protection for charter schools against claims arising from abuse and molestation allegations. This coverage is typically excluded on any other policy.
Automobile Liability
Coverage if a charter school is legally liable for bodily injury or property damage caused by an automobile.
Directors’ & Officers’ Coverage
Provides financial protection for the directors and officers of your charter school in the event they are sued in conjunction with the performance of their duties as they relate to the educational institution.
Educators’ Error & Omissions (Professional Liability) Insurance
Protects your charter school from claims arising from the failure to perform within the scope of your professional duties that result in damages to another party.
Employee Benefits Liability
Coverage for wrongful acts committed to administering a charter school’s employee benefits program.
Employment Practices Liability
A form of liability insurance covering wrongful acts arising from employment practices such as wrongful termination, discrimination, and sexual harassment.
General Liability
Coverage for a charter school when negligent acts and/or omissions result in bodily injury and/or property damage on the premises of the school, when someone is injured as the result of using the product manufactured or distributed by the charter school, or when someone is injured in the general operations of a charter school.
Property Insurance
Protection against most property risks, such as fire, theft, and some weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, or boiler insurance.
Workers’ Compensation Insurance
Provides compensation and medical care for employees who are injured in the course of employment in exchange for mandatory relinquishment of the employee’s right to sue his or her employer for the tort of negligence.
Premium Estimates
One of the difficult situations we have found in working with new charter schools is estimating premiums for all of the necessary insurance coverages to accompany the proforma financials submitted with each application. As there are several unknown factors involved, it can be tough to provide an accurate premium estimate. Additionally, some states actually require a proposal of insurance to accompany the charter school’s application.
If you have any questions on estimating your new charter school’s insurance costs, please feel free to contact our office. We will not only provide you with insight into the necessary coverages your school will need, but we can also provide your charter school with the necessary insurance proposals required by your state.
State-Specific Requirements
The following are links to find out what your state’s charter school insurance requirements are:
Arizona Charter School Insurance Requirements: http://www.azleg.state.az.us/ars/15/00183.htm
California Charter School Insurance Requirements: http://www.ousdcharters.net/uploads/4/1/6/1/41611/2012charterschoollaw2012.pdf
Colorado Charter School Insurance Requirements: http://www.cde.state.co.us/cdechart/guidebook/district/pdf/CommonApp_StandardApp_Final.pdf
Idaho Charter School Insurance Requirements: http://chartercommission.idaho.gov/schools/legacy/charter.pdf
Nevada Charter School Insurance Requirements: http://www.leg.state.nv.us/nac/nac-386.html#NAC386Sec215
Utah Charter School Insurance Requirements: http://www.schools.utah.gov/charterschools/Training/Planning-Year-Trainings/February-2011/InsuranceCoverage.aspx
Charter schools are quickly becoming a preferred education forum for parents, students, and even teachers. If you plan on opening a charter school or in the process right now, you are certainly aware of the lengthy application process involved. One of the critical items addressed on each application is the necessary insurance for a new charter school and the costs associated with each policy. While each state has its own insurance requirements regarding policies, coverages, and limits, there are still several similarities between each one.
Required Insurance Coverages
The following is a list of the most common insurance coverages required for charter schools by state departments of education (in alphabetical order):
Abuse/Molestation Coverage
Provides defense and indemnity protection for charter schools against claims arising from abuse and molestation allegations. This coverage is typically excluded on any other policy.
Automobile Liability
Coverage if a charter school is legally liable for bodily injury or property damage caused by an automobile.
Directors’ & Officers’ Coverage
Provides financial protection for the directors and officers of your charter school in the event they are sued in conjunction with the performance of their duties as they relate to the educational institution.
Educators’ Error & Omissions (Professional Liability) Insurance
Protects your charter school from claims arising from the failure to perform within the scope of your professional duties that result in damages to another party.
Employee Benefits Liability
Coverage for wrongful acts committed to administering a charter school’s employee benefits program.
Employment Practices Liability
A form of liability insurance covering wrongful acts arising from employment practices such as wrongful termination, discrimination, and sexual harassment.
General Liability
Coverage for a charter school when negligent acts and/or omissions result in bodily injury and/or property damage on the premises of the school, when someone is injured as the result of using the product manufactured or distributed by the charter school, or when someone is injured in the general operations of a charter school.
Property Insurance
Protection against most property risks, such as fire, theft, and some weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, or boiler insurance.
Workers’ Compensation Insurance
Provides compensation and medical care for employees who are injured in the course of employment in exchange for mandatory relinquishment of the employee’s right to sue his or her employer for the tort of negligence.
Premium Estimates
One of the difficult situations we have found in working with new charter schools is estimating premiums for all of the necessary insurance coverages to accompany the proforma financials submitted with each application. As there are several unknown factors involved, it can be tough to provide an accurate premium estimate. Additionally, some states actually require a proposal of insurance to accompany the charter school’s application.
If you have any questions on estimating your new charter school’s insurance costs, please feel free to contact our office. We will not only provide you with insight into the necessary coverages your school will need, but we can also provide your charter school with the necessary insurance proposals required by your state.
State-Specific Requirements
The following are links to find out what your state’s charter school insurance requirements are:
Arizona Charter School Insurance Requirements: http://www.azleg.state.az.us/ars/15/00183.htm
California Charter School Insurance Requirements: http://www.ousdcharters.net/uploads/4/1/6/1/41611/2012charterschoollaw2012.pdf
Colorado Charter School Insurance Requirements: http://www.cde.state.co.us/cdechart/guidebook/district/pdf/CommonApp_StandardApp_Final.pdf
Idaho Charter School Insurance Requirements: http://chartercommission.idaho.gov/schools/legacy/charter.pdf
Nevada Charter School Insurance Requirements: http://www.leg.state.nv.us/nac/nac-386.html#NAC386Sec215
Utah Charter School Insurance Requirements: http://www.schools.utah.gov/charterschools/Training/Planning-Year-Trainings/February-2011/InsuranceCoverage.aspx