The Unique Insurance Needs of Religious Schools: What Administrators Should Know

Could uncovered risks disrupt your school? A robust insurance program can help your school manage its risks and stay focused on providing a quality education.

Insurance for Religious Schools

Religious schools require thoughtful, comprehensive insurance programs that may include:

• Property Insurance
• General Liability Insurance
• Abuse and Molestation Insurance
• Educators Professional Liability Insurance
• Employment Practices Liability Insurance
• Auto Insurance
• Cyber Insurance
• Workers’ Compensation Insurance
• Directors and Officers Insurance

While some of these policy types are standard for organizations in any industry, religious schools may require specific policy terms to cover their unique risks adequately.

Religious School Risk Scenarios

To see why religious schools can benefit from specialized insurance programs, consider the following risk scenarios:

• A teacher shares her political views with her students, and some of these views run counter to the religious teachings of your organization. After several parents complain, you decide not to renew the teacher’s contract. The teacher then sues for wrongful termination and discrimination.
• A student is assaulted by another student while on a field trip. The parents sue your school for failing to provide a safe environment.
• A student is bullied by several classmates. Most of the bullying mainly occurs outside of school hours, largely online, so your school does not intervene. The parents sue the school for failing to keep the student safe.
• A large storm hits the region. Your school is located in an old building that predates many modern code requirements. The building is severely damaged, and it will have to be brought up to code during repairs, adding to the total costs.
• A former student files a lawsuit accusing a teacher of inappropriate conduct and abuse. The teacher in question no longer works at the school, and you’re unsure of how to approach your defense.
• A ransomware attack targets your school. Critical files are encrypted, and this interferes with daily operations. Even worse, sensitive student files have been exposed, and some of the families plan to sue the school for failing to keep the records safe.

Why Insurance Coverage Deserves Another Look Now

Adequate insurance coverage is always important, but current factors make it essential to give your policies a thorough review.

• Increased Frequency and Severity of Natural Disasters. Schools in historic buildings may be particularly vulnerable to damage from storms and fires. If your school is not in compliance with newer codes, also consider purchasing ordinance or law coverage to pay for the extra costs associated with bringing your building up to code during repairs.
• Political and Social Upheaval. From debates over gender ideology to political disputes, this is an especially contentious period, and schools are often caught in the middle. Policies regarding pronouns and preferred names, bathrooms, and sports team eligibility may come under scrutiny.
• Statute of Limitations Reform. New state laws make it easier for victims of childhood abuse to seek justice years later. This has greatly increased the risk of lawsuits alleging abuse and molestation. As a result, insurance is harder to find and more expensive to buy right when coverage is needed the most.
• Cyber Risks. Rapid adoption of technology among both schools and students has led to a new host of risks. Ransomware attacks and data breaches are only part of the problem. Schools could also face lawsuits over cyberbullying among students.
• Rising Litigation Costs. When lawsuits occur, they are increasingly expensive. There are several reasons for this, including rising defense costs and a growing tendency toward massive jury awards.

Is Your School Managing Its Risks?

Religious schools face many of the same risks as larger, public schools, but they often lack the resources that could help manage these risks and defend against claims. At the same time, the religious nature of these schools can add complexity to certain issues, increasing the risk of liability claims.

Heffernan Insurance Brokers can help religious schools manage their risks. We offer an insurance and risk management program that caters to the needs of the education sector, including religious schools. We’ll work with you to help you secure the coverage you need with the specific policy terms that will provide protection if you ever face a claim. Learn more about insurance for religious schools.