In short

• Education institutions face an expansive set of liability risks, with the COVID-19 pandemic exacerbating and adding to traditional threats.
• The escalating threat of cyber attack and recent data breaches targeting schools and universities have compelled many institutions to purchase cyber cover.
• With insurance litigation on the rise, education establishments must ensure they have fit-for-purpose insurance in place, so they are protected if something goes wrong.

Schools, childcare centres, universities and other education institutions have complex insurance needs that are steadily diversifying as the academic landscape evolves. 

While such establishments have traditionally focused on risk areas such as public and property liability and workers’ compensation, over the past 10 to 15 years it’s been ‘softer’ exposures that have come to the fore, says Mark Johnson, CEO of Howden Insurance Brokers Hong Kong. “We’re seeing a lot more discrimination-type claims, whether for ability, gender or race,” he explains, adding that staffing matters — anything from decisions regarding tenure to accusations of inappropriate behaviour — are also generating more claims.

According to Janine Rodgers, group broking manager at Crombie Lockwood, this broad set of exposures means underinsurance is one of the greatest risks to the sector. She points to recent surges in building and labour costs — as well as the complexities associated with replacing contents for schools, including specialist equipment — as just one area where institutions must ensure they have adequate protection. “Costs have increased dramatically over the last two years and the availability of some products is still an issue, with large delays in replacement,” she says.

Covering all bases

A truly effective insurance program must undergo a fit-for-purpose design phase so that it caters for the niche risks associated with education, says Lynette Walsh, Australia’s national client director at Aon.

“The most difficult-to-place risks surround a school’s liability program, specifically in relation to sexual molestation, concussion exposure and hazardous activities,”

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