Educational facilities face many unique risks, from children falling down and getting injured to science experiments going wrong. But what if yours is a small-scale school with 150 students or fewer? Well, then you’ll need insurance for micro schooling.
This type of insurance policy is for low-income schools and protects these facilities from specific risks at low premium rates. If you’re an educator and you have a micro school, you’ll need the correct insurance policy for your business.
Continue reading if you’d like to find out what type of insurance schools utilize and what types of plans there are for your micro school.
What Is Educational Insurance?
Educational insurance is a policy specifically put together to cover risks that can occur in a schooling environment. There are policies that can help with funds in the event of property damage, student or teacher injuries, or loss of educational tools such as textbooks.
Insurance is critical to education service providers, to ensure that all assets are properly covered in case of unexpected accidents. The best insurance for any school, whether it’s a micro school or a large private school, is BOP (Business Owner’s Policy). The BOP plan can help protect your micro school similar to the way it covers your house.
Three Types Of Business Owners Policies
1. Commercial Property Insurance
Commercial property insurance helps you cover school equipment such as overhead projectors, TVs, computers, and books. Additionally, this plan protects your furniture such as school desks and chairs. A commercial property policy will apply whether you own or lease the property.
2. General Liability Insurance
General liability insurance protects your micro school in the event of bodily injury on the property during school hours. The policy can help pay for your students’ medical bills. With general liability you can also cover student property damage caused by an educator on your premises.
A general liability policy will also assist you in the event of libel or slander against your school. On the other hand, this policy doesn’t cover claims from your micro school’s professional educational service.
3. Business Income Insurance
In the event of property damage caused by a fire, flood, or storm, you won’t be able to open your school until the damages have been repaired. Unfortunately, a closed school results in a loss of income.
That’s when you’ll need business income insurance because this plan can help recover loss of income when you’re unable to open your school.
A business owner’s policy is ideal for private micro schools because it offers a wide range of coverages. What’s more, some insurance companies allow you to add to your BOP, so you can customize your plan based on what your micro school needs.
Why Your Micro School May Need Professional Liability Insurance
You could face a lawsuit if a parent believes their child’s poor grades are a result of negligent behaviour by educators in your school. Professional liability insurance will help pay for legal costs to defend your business.
Even if you didn’t do anything wrong and you abide by a strict code of conduct, you could still face legal charges from third parties. So ensure that you have professional liability insurance to help you pay for lawyers or settlements in the event of a legal battle.
When Do You Need Workers Compensation Insurance?
If you have more than two educators teaching children in your school, then consider providing workers compensation insurance. This type of policy replaces wages and medical benefits to educators who are injured on your school’s premises.
Worker’s compensation is required for all businesses in every state, no matter how big or small the facility is. The policy will provide funds to the employee even if he or she is unable to attend work due to the injury. You will also be covered for any legal charges against you should your employee sue you for the injury.
Will Home-Based Insurance Work For Your Micro School?
Are you running your micro school in your home? Although your current home insurance will protect your personal assets, it may not cover your business assets. Ideally, you want a plan that will cover the technology you use for your school as well as files and student documentation.
The type of insurance you need is a home-based business plan. If students are coming to your home to learn and you have additional educators assisting you, this is the type of policy you need.
If you expect your micro school to grow over time, then you may want to consider choosing an insurer that will offer you a range of options. Home-based business insurance should include plans for general liability and business owner’s policies.
Another reason to consider getting home-based business insurance is if you work with digital documentation. If your students work mostly on computers, or you complete administration tasks on a digital device, then you need cyber breach coverage.
It’s crucial that you have cyber breach plans, especially if you’re working with student bank accounts, exams, or other personal details on your computer. In the event of a data breach, your policy will help recover the costs in the event of lost data.
Do You Need Commercial Auto Insurance For Your Micro School?
If you and your staff use your own cars or you use a minibus to drive students during school outings, you may want to consider getting commercial auto insurance. This policy will help cover costs of repairs on personal vehicles in the event of an accident.
The Cost Of Insurance For Micro Schools
One benefit of having a small-scale school is that there are fewer risks compared to larger educational facilities. Therefore, you may pay less for your premium. Depending on the size of your micro school and the risks involved, you can expect to pay about $1,200 annually for your policy.
This will greatly depend on the service provider you choose to use, because some insurers will give low-income businesses discounts on their premiums.
Frequently Asked Questions (FAQs)
What Is A Micro School?
A micro school is a small-scale facility that has 150 students or less. It offers more personalized learning for students and combines traditional and homeschooling for your child. Even though the micro school is small, it still provides excellent social skills for children in a more controlled environment.
There are many benefits your child can experience if you enroll him or her into a micro learning facility. These schools focus on developing your child’s emotional and social growth. You as a parent can also benefit from a micro school, especially if you’re looking for a community that you and your family can belong to.
What Are Liability Issues For Micro Schools?
There is the liability of students or educators getting injured on your premises. You will need to find an insurance policy that will cover the costs of any injuries that could occur on school grounds. The best insurance plan for this is a liability policy.
If you don’t have adequate insurance covering you for personal injuries on your property, you’ll have to pay for these costs out of your own pocket if they do occur.
What Type Of Insurance Do Schools Have?
Schools will have a business owner’s policy (BOP), which is a comprehensive plan that covers an educational facility for the following:
- Property damage
- Bodily injury
- Loss of income due to damaged property
- Legal coverage in the event of being sued
You can choose to add on to your insurance plan for employee compensation or health insurance to cover medical costs.
A micro school is essentially a business, and any company, no matter what industry it’s in, will have unique liabilities. If you have a micro learning facility, you must get the correct insurance plan to cover your business in the event of accidents or property damage.
Since you’re a small-scale school, you are more at risk of closing down if you lose a large portion of your income due to claims, lawsuits, or damage to property and equipment. If you’re unsure which insurance policy to choose for your micro school, then consider talking to a professional insurance broker.
A professional insurer will be able to give you the best advice on which liabilities you have based on your facilities and the assets you need to cover. If you’re working from home, look for home-based business insurance policies to see if these plans can offer you the coverage you need for your school.
Use the tips given in this article to help you find the best insurance for your educational business.
Do you have a micro school? If you do, what insurance policy do you have to cover your assets and to protect you from claims? Let us know in the comments section below. We are always happy to learn more from our readers.