One of the frequent questions we receive, especially from new charter schools that have not entirely opened yet, is regarding the calculation of their general liability insurance premiums. Ost does not know how insurance companies determine liability premiums for a charter school or what they should expect to pay annually.
Outside of charter schools, premiums are usually calculated using gross revenue or employee payroll. ypically, an underwriter assigns a rate to the company based on every 1,000 in sales. His rate is determined by several risk factors, including the company’s history, current policies and procedures, and prior claims history. the better your company’s outlook, the lower the premium assigned.
For charter schools, the underwriter looks at many of the same factors. Due to the high-risk nature of potential claims involving kids, they will pay more attention to prior claims, hiring policies, premises safety, and policies and procedures. thenonce they feel comfortable with the school’s potential risk, they will provide a quote based on the number of expected enrolled students for the upcoming school year. So, as your school grows, its liability premiums will also increase incrementally.
As experienced charter schools are looking to decrease their premiums, we recommend reducing your per-student rate from your insurance company. There are several ways this can be done:
- Implement more stringent policies and procedures to avoid claims.
- Request a loss control survey from your current insurance company.
- Work with an agent that has a strong relationship with charter school underwriters.
Please contact the Charter School Insurance Alliance to learn more about decreasing your premiums.
