The Insurance for Texans Blog

Rising Insurance Costs Threaten Texas Private Schools: Secrets To Help

Written by Matt Wilson | Dec 17, 2024 4:00:34 PM

David got his most recent insurance renewal bill in the mail for his Austin private school. As the headmaster, he has kept tabs on the school's budget and the effects that inflation was having on what tuition was going to cost for the next school year. It wasn't pretty at all.

David's current growing concern was just how much the insurance costs were rising for the upcoming year. He reached out to colleagues at other private schools and realized that escalating premiums were becoming a shared burden across the state. His school’s policy renewal was still 60 days away, but the hike in premium rates threatened to stretch his already thin budget to the brink. David set out to secure a more cost-effective solution for his school to help provide some relief to the financial strain that they were feeling.

The Importance of Securing the Right Insurance for Private Schools

For private schools, securing the right insurance goes beyond compliance—it’s about safeguarding the institution against financial uncertainty. Unlike public school districts, school's like the one David is in charge of can be more susceptible to legal costs if a parent decides to take action for even a perceived problem. As he began to look around the internet at essential coverage options, he began to have more questions.

When David called our office, he learned that a comprehensive approach to coverage provides vital protection against lawsuits, injuries, and unforeseen damages. Proper coverage allowed his school to focus on its mission of educating students while providing stability in the face of potential legal or financial risks due to things both in your control and not.

Key Types of Insurance for Private Schools

Navigating the different types of coverage for private schools can be daunting. David discovered that his school required additional coverage beyond a basic policy. As he asked questions, the experienced insurance agent was able to identify property and liability coverage that his school needed to shift the risk over to the insurance company.

  • General Liability Insurance: Protects against lawsuits stemming from accidents or injuries on campus.
General liability insurance addressed medical expenses from accidents and liability claims from visitors or students. This coverage reassured David that even slip-and-fall incidents wouldn’t lead to financial hardship. It's important to note that there are limitations and this does not cover employee injuries that happen while working.
  • Professional Liability Insurance: Covers claims of negligence or errors in providing educational services to children.
Professional liability insurance protected David and his staff against claims of negligence in providing educational services. From curriculum disputes to teacher conduct, this coverage ensured the school could manage legal challenges effectively. While not required, this legal liability insurance is highly recommended since some parents can have unrealistic expectations about what will happen in class.
  • Property Insurance: A commercial property insurance policy covers buildings, classroom equipment, and other assets.
Property insurance for private schools includes building, contents, and outdoor equipment coverage. David ensured that his school had adequate protection for its facilities and equipment, particularly against weather-related events common in Texas. The weather in Texas is crazy enough, that making sure you can replace playground equipment and football stadium lights is just as important as your buildings.
  • Abuse and Molestation Insurance: This liability policy is one that many people do not like to discuss because of the sensitive nature of the topic. But ignoring won't help later.
David understood the sensitive nature of abuse and molestation claims. Securing this coverage from the start provided his school with financial and reputational protection, reinforcing its commitment to student safety. Sexual abuse policies offer protection against allegations of misconduct even if they are unfounded.
  • Commercial Auto Insurance: For schools with transportation services, this covers vehicle-related accidents and incidents.
David was aware that personal auto policies would not help cover a school bus. But he was unaware of potential risks of parents driving for things like field trips. Even if you don't own a bus or van, there is third party coverage that will protect the school if a parent driver has an accident.

These insurance options can be found on a single or multiple policy. This means your approach to liability coverage can address specific risks. David was able to take a deep breath knowing his school was deeply protected if the claim process was needed.

Five Strategies to Manage Insurance Costs

Working with an independent insurance agent that specializes in helping private schools in Texas, David adopted key strategies to control insurance expenses. While they may not be the most exciting thing to think about, they help protect school administrators against claims that can create awful situations and lower insurance premiums.

  1. Preventive Training: Regular staff training reduced risks, improving safety.
  2. Avoiding Small Claims: Managing minor issues in-house helped prevent premium increases.
  3. Accurate Reporting: Providing correct information ensured fair and accurate pricing.
  4. Maintaining Safety Equipment: Up-to-date equipment and safety features minimized liability risks.
  5. Evaluating Total Cost of Risk: Balancing premium costs with adequate coverage for long-term security.

Choosing the Right Policy with Insurance For Texans

David worked with Insurance For Texans to assess his school’s unique needs and secure customized coverage for their needs. True Texas Education Insurance provided customizable policies that addressed everything from field trips to lost income coverage if a major weather event happens. David knew his private school was well-protected from the things that mattered. And using those strategies listed above, he was even able to find some savings in his cost of premiums.

If you’re managing a private school in Texas, don’t let rising insurance costs compromise your operations. There is help to be found whether your school is well established or new to the scene.

Click the button below to learn how Insurance For Texans can help you find affordable, comprehensive coverage to safeguard your institution’s future.