Insurance Considerations for Public and Private Elementary Schools

Public and private elementary schools serve as foundational educational institutions for pupils from kindergarten through fifth or sixth grade. These academic centers are vital in helping children to learn, grow, and socialize. Typical tasks include teaching students to read, write, and understand fundamental science and mathematics concepts; providing space for physical education; and developing creativity through art lessons. However, such activities are commonly spread across multiple locations (e.g., classrooms, playgrounds, and field trip settings), which can introduce numerous risks.

Moreover, several circumstances can impact elementary schools’ ability to keep students, parents, visitors, and staff safe. Risks that may jeopardize the safety of those on-site may include property damage due to natural disasters and more nuanced challenges, such as violent students or educational malpractice. Other risks include crime-related perils, occupational safety concerns, and cyber-threats.

It’s critical that schools and their operations are financially protected against possible losses by securing proper insurance. Keep reading for an outline of common exposures within elementary schools and associated coverage considerations.

Common Exposures

Here’s a breakdown of the key exposures elementary schools may face in their operations:

Property damage risks—Elementary schools contain multiple property assets, including buildings, storage facilities, outdoor play equipment, and sports courts. They also utilize various electrical equipment (e.g., overhead projectors, TVs, and computer hardware), as well as school supplies (e.g., educational toys and games, easels, and textbooks) and office furniture (e.g., desks, chairs, and whiteboards.) Unfortunately, unexpected events—including vandalism, theft, fires, and natural disasters—can result in this property being damaged, stolen, or destroyed, potentially leaving elementary schools with significant recovery expenses.

Auto risks—Elementary schools may use school buses to transport students to and from school and utility vehicles for ground maintenance, waste collection, and other purposes. Operating these vehicles carries numerous exposures; rowdy children on the school bus may distract the driver, or inclement weather could create difficult driving conditions when transporting students to and from field trips. Elementary schools could incur substantial expenses from vehicle repairs and bodily injuries in the event of auto accidents.

General liability risks—Elementary schools typically have many students and visitors on-site at any one time, which could lead to frequent liability claims. Students could slip on spilled food or drink in the cafeteria, fall from damaged play equipment, or suffer injuries during sporting activities arising from inadequate supervision or improper use of equipment (e.g., safety helmets). Injuries could occur during field trips or stem from troubled students acting out violently. Moreover, elementary schools can face claims of harassment and molestation, especially now that the widening adoption of reviver statutes across the United States means that adults can seek retroactive accountability for childhood incidents.

Professional liability risks—Elementary schools have a duty of care for their students, and this duty exposes them to claims of negligence, misconduct, and inadequate care. For example, educators could be accused of unreasonable discipline, and parents could blame nursing staff for misdiagnosed behavioral conditions. Moreover, errors in judgment could cause teachers to expose students to inappropriate subject matter (e.g., insufficient internet safeguards allowing pupils to visit unsuitable websites). Such professional liability incidents could cause elementary schools to be sued and held liable for the related losses.

Occupational safety—Common occupational ailments among elementary school workers include stress-related disorders from high-pressure workloads; musculoskeletal disorders stemming from bending over low tables or sitting on children’s chairs; chemical burns during science demonstrations; and injuries from intervening in school fights, restraining combative students, and slips, trips and falls. If employees get injured or become ill on the job, elementary schools could be held responsible for these workers’ subsequent hospital bills, treatment expenses, and lost wages.

Crime risk—Elementary schools typically have cash on the premises from cafeteria sales, library fees, and other services, which can leave them vulnerable to theft. Moreover, some private schools may accept large tuition payments, which could make them susceptible to bank reconciliation fraud from dishonest employees. Students and staff may also steal equipment, software, and other supplies.

Cyber risk—Elementary schools often use digital systems and software to store confidential student and financial data that cybercriminals could target. Following cyber breaches, elementary schools may encounter various costs related to notifying impacted individuals, recovering lost or damaged data, and handling associated legal ramifications and reputational losses.

Employment practices risks—Elementary schools are responsible for providing employees with a fair and supportive workplace that is free from discrimination, harassment, and retaliation. If elementary schools fail in this duty or take adverse employment actions (e.g., discipline, failure to grant tenure, or termination) without reasonable cause, they could face costly legal action from disgruntled employees.

Coverage Considerations

To help address their exposures and stay protected from potential losses, elementary schools should consider the following forms of coverage:

• Property insurance—This coverage can help pay the resulting repair or replacement costs if an elementary school’s property—such as its buildings, playground equipment, and classroom supplies—gets damaged, stolen, or destroyed due to a covered event.

• General liability insurance—This coverage can provide financial assistance if an elementary school is held legally or financially liable for injuries, harm, or damage to another party or their property. Abuse and molestation coverage is an optional endorsement that can help cover claims of negligence related to sexual abuse and molestation.

• Commercial auto insurance—This coverage can help reimburse the costs stemming from elementary school employees getting involved in an accident on the road while operating a school bus or another school-owned vehicle.

• Educators’ professional liability insurance—This coverage type can assist in paying the legal defense costs if a student or parent files a claim against a teacher due to negligence, professional errors, or breach of duty

• Employment practices liability (EPL) insurance—Elementary schools could be faced with employee lawsuits alleging workplace discrimination, harassment, wrongful termination or discipline, or failure to grant tenure. In these cases, EPL coverage can assist with the associated legal defense costs.

• Workers’ compensation insurance—If an elementary school’s employees get injured or become ill in the course of their duties, this coverage can help pay these workers’ medical bills, rehabilitation expenses, and lost wages.

• Crime insurance—Also known as fidelity insurance, this coverage can reimburse an elementary school for losses caused by theft, employee dishonesty, and other business-related crimes.

• Cyber insurance—This coverage can assist with the various expenses arising from data breaches, ransomware attacks, or other cyber incidents.

• Umbrella—If an elementary school’s claim costs exceed the limits for its primary liability policies, this coverage can increase those limits. Furthermore, umbrella policies can broaden existing policy coverage.
Depending on the specific circumstances of elementary schools, crisis event coverage and equipment breakdown coverage may also be beneficial.

Contact us today for additional risk management guidance and insurance solutions.