The insurance market is failing schools, suggests Mark Blois – but make sure you have the right cover, and the cost savings may follow later.
Schools are getting a rough deal from insurance. The most recent government guidance on insurance for schools dates from 2003; since then both the issues surrounding insurance and the education system itself have grown substantially more complicated. This lack of information – coupled with an unresponsive commercial market – has meant that insurance arrangements for schools can be unnecessarily generic and expensive, and fail to meet their needs.
Schools are arguably unique in the number and variety of risks they face. However, although all schools encounter the same risks, the variety of types of model of schools means that they do not necessarily all face an equal level of risk in all those areas.
Take the damage or destruction of buildings. This represents a serious risk to many schools. If premises are seriously damaged, a school may have to close down completely. School buildings should be insured for the full cost of reconstruction.
Cover can also be arranged for other school property, including unlicensed vehicles not used on the public road, equipment on loan or hire, contract works and the personal effects of pupils, staff and governors. Damage by fire and other risks can be insured, but schools usually have to bear the first part of the loss for damage by storm, food and water damage, theft and subsidence. Other risks are uninsurable, such as ordinary wear and tear to property. There are also likely to be limits on the insurer’s liability for loss of money, computer systems records and personal effects.