The unique exposures of educational institutions pose a complex web of risks for school administrators and financial officers. From protecting students and staff to safeguarding financial assets, the decisions they make can have a significant impact on the institution’s well-being. Unison Risk Advisor’s fifth-annual benchmark reports offer valuable insights into current risk management practices and insurance purchasing decisions in both K-12 independent schools and higher education institutions.

Overview: Independent K-12 Schools

The report found a clear correlation between school size and insurance purchasing behavior. Larger schools with over 1,000 students tend to purchase higher coverage limits compared to those with lower enrollment. Key findings include:

• Educators Legal Liability (ELL): A significant range of coverage limits were observed, with 37% of schools purchasing between $1 million and $5 million limits, 28% purchasing over $11 million and the largest limit secured being $40 million. 25% of schools with over 1,000 students purchased over $10 million of coverage.
• Excess Liability: Public schools, due to governmental immunity protections, were less likely to carry excess liability coverage compared to private schools. 45% of small schools carry excess liability limits less than $10 million, while 13% carry limits of $20 million or greater. 36% of schools with over 1,000 students carry excess liability insurance limits greater than $20 million.
• Fiduciary Liability: Most schools purchase fiduciary liability insurance, primarily to address exposures related to employee retirement plans. Overall, 74% of schools purchase a $1 million limit, including 91% of small schools. 43% of schools with more than 1,000 students purchase $2 million or more.
• Cyber Liability: The vast majority of independent schools (87%) reported purchasing a $1 million cyber liability insurance limit while 14% purchase a limit of $2 million or greater. This reflects the growing awareness of cyber threats in the educational landscape, and we anticipate schools purchasing higher limits in the future.

You can request the complete independent K-12 schools report here.

Overview: Higher Education

Similar to K-12 schools, a wide range of coverage limits were observed, with larger institutions opting for higher protection. Key insights include:

• Educators Legal Liability (ELL): 21% of 4-year colleges purchased less than $5 million of educators legal liability coverage, and 27% purchased limits of at least $25 million. 35% of schools with enrollments greater than 1,000 purchase a least $25 million of coverage, compared to 25% of smaller schools.
• Excess Liability: The report highlights variations in policy offerings across insurance companies. 17% of schools carry a limit of less than $10 million, while 31% carry a limit of $30 million or more.
• Fiduciary Liability: Nearly all institutions (97%) carry fiduciary liability coverage, with larger schools again demonstrating a preference for higher limits. 48% of larger schools purchased at least $5 million of fiduciary liability insurance coverage, while all smaller schools purchased less than $5 million.
• Cyber Liability: Nearly all colleges and universities reported having cyber liability insurance, with a clear trend towards larger institutions purchasing higher coverage limits. 56% of schools with more than 1,000 students purchase a limit of at least $3 million, compared to 18% of smaller schools.

You can request the complete higher education report here.

Learn More

Our 2024 Education Benchmark reports include data for many important lines of coverage. It is important to remember that the data presented is a starting point. Each institution has its own unique risk profile, and a thorough review of individual exposures remains crucial for informed decision-making. By leveraging data-driven insights and partnering with experienced risk management professionals, institutions can navigate the challenges inherent within the education sector and ensure a secure future for their students, staff and institution.