The Importance of Insuring Educational Services
(And how you can easily find the right coverage today)
According to the Education Industry Association (EIA), although growth in the education sector has slowed in recent years, the outlook over the next five years is positive.
In fact, they predict that the education industry will outpace its not-for-profit peers in terms of growth with an expected revenue increase of 4.1 percent. This is great news for anyone who runs any type of business within the education sector.
Of course, with this business also come inherent risks that can lead to financial losses. This is why having a business insurance policy specifically designed for the education industry is so important.
What Types of Businesses Fall Under the NAICS’s Educational Services Sector?
The National American Industry Classification System, or NAICS, was created to categorize U.S. businesses into a number of different sectors and subsectors. This was done for the purpose of data collection, analysis and reporting.
There are currently 374,398 businesses classified under the NAIC’s Education Industry Sector. Included are the following business types:
- Elementary and Secondary Schools
- Junior Colleges
- Colleges, Universities and Professional Schools
- Business and Secretarial Schools
- Technical and Trade Schools, including:
- Computer Training Schools
- Cosmetology and Barber Schools
- Flight Training Schools
- Fine Arts Schools
- Apprenticeship Training Schools
- Sports and Recreation Instruction
- Language Schools
- Exam Preparation and Tutoring Businesses
- Automobile Driving Schools
- Educational Support Services
Insurance for the Educational Services Industry is Very Important
When you are running a school of any type, you run the risk of liability lawsuits, property damage and student and faculty injuries. Fortunately, business insurance tailored specifically for the education industry can help protect your business and prevent undue financial losses.
Some coverage types that may be particularly important in your industry include:
- Educators legal liability insurance: This coverage is designed to cover educational institutions against claims of wrongful employment practices including discrimination, wrongful termination and failure to grant tenure.
- Student and student athlete injury insurance: Whenever you have large groups of people in one place, particularly when athletics are part of the curriculum, you run the risk of injuries. This insurance is designed to provide coverage if your educational facility is held liable for a student injury.
- Crisis event coverage: Unfortunately, in this day and age, this is something that educational institutions must give consideration. This insurance is designed to cover the costs associated with communication, counseling and other related expenses following a tragic or violent event on your school’s campus.
Of course, there are many more coverage options available to you, and the insurance types that are right for your school will be largely dependent on its size, scope and educational focus.
To ensure that you are fully covering your liability risks and assets, it is to your advantage to discuss your options with an independent insurance agent before making a purchase.