From online bullying to sports injuries, educators face complex and evolving risks that have raised the stakes on liability insurance for schools. Unpredictable injuries and losses have fueled a rise in multimillion-dollar judgments, such as the $1.7 million settlement between a Washington state school board and a football coach over a First Amendment rights violation and the $135 million awarded to former students of a California school who were abused by their teacher nearly three decades prior.

Such claims can severely affect the reputation and financial health of educational institutions at all tiers, whether K-12 schools, trade schools, or colleges.

Philadelphia Insurance Companies (PHLY) has served educational institutions for decades, and we draw on that expertise to tailor our school liability insurance package to cover evolving threats. Each policy comes with the core benefits of our General Liability coverage ($1M each occurrence/$3M aggregate), but it can also extend to several specialized endorsements.

Our strategic approach to risk management for schools also tracks emerging risks. Schools should consider four of these risks when choosing coverage.

1. Vulnerability of Sensitive Data

Educators and administrators collect a vast trove of sensitive personal information about students and staff, from Social Security numbers to medical histories and grades. This deep well of data can attract hackers, and it is only as safe as the systems and laptops that store it.

In 2023, for instance, a San Diego school district paid out a $1.75 million settlement for a data breach that compromised the personal information of nearly 100,000 students and parents.

PHLY's industry-leading cyber liability coverage covers many risks that aren't included in general liability insurance for schools, from damages to business interruption expenses. Built on PHLY's A++ paper, our cyber liability policy is easily tailored for agents securing insurance for educational institutions.

2. Special Education Claims

During the 2022-2023 school year, a record 7.5 million students (or roughly 15% of all public school students in the U.S.) received special education services under the Individuals with Disabilities Education Act. Educating these children while addressing their unique physical, mental, and emotional needs has always been a balancing act for schools and teachers.

At the same time, parents are increasingly vigilant about their children's individual education programs, or IEPs. Schools that stand accused of inadequate or delayed implementation, often under emotionally charged circumstances, can end up with expensive payouts.

PHLY's educators professional liability insurance, Educators Professional Select, can mitigate the financial repercussions of these claims. Our policy offers both financial protection and access to experienced claims examiners who understand the complexities of IEP-related disputes.

3. School Sports Injury Liability

More students play competitive sports than ever before, and with that comes ever-increasing exposure to risk. An estimated 2 million sports-related injuries occur nationwide among students each year, with 10% involving fractures - and in some cases, far more serious injuries.

When sprains, breaks, and concussions occur due to lax supervision, unsafe fields, or defective equipment, schools can be liable for costly judgments, such as the $31 million settlement paid by a California school district to a student football player whose traumatic injuries were tied to unsafe field conditions.

Risk management for schools, especially around sports, should involve safety protocols, regular inspections and maintenance of equipment and facilities, and proper training for coaches and staff.

PHLY's competitive student accident insurance spans both K-12 and college/university students, helping to reduce the impact of injuries and the costly school insurance claims that can follow.

4. Pervasive Bullying and Abuse

The intimidation, bullying, and abuse of students are terrible realities that schools struggle to control. This issue is further complicated by students spending more and more time on social media, regardless of whether it originates from peers, teachers, or coaches. Roughly 10% of students will face sexual misconduct before they graduate high school, according to federal data, and one in every five students report being bullied each year.

In the face of pervasive abuse, it's critical that educators stay proactive. PHLY is committed to protecting vulnerable populations and offers no-cost abuse risk management resources to schools on:

• Abuse prevention

• Sexual harassment prevention

• Smart hiring

• Ethics

• Suicide prevention

PHLY pairs these resources with insightful policies and sensitive customer support.

If a school seeks an insurance carrier to help them with complex policy needs, PHLY is the partner for them. To learn more about PHLY's liability insurance coverage for schools and specialized endorsements for educational institutions, visit our product page or contact us today at 800-873-4552.