Essential Business Insurances for Colleges, Universities, and Professional Schools with NAICS Code 6113

Key Takeaways

General liability insurance protects against injuries on campus and lawsuits.
Property insurance covers buildings, equipment and lost revenue from damage.
Workers’ compensation covers medical costs and lost wages for injured employees.
Commercial auto protects transportation fleets from liability and damage claims.
Professional liability protects against errors and omissions lawsuits from students.
Cyber liability reimburses costs of data breaches and privacy violations.
Directors and officers liability protects leadership from personal liability claims.

Introduction

Colleges, universities, and professional schools face unique risks operating large campuses and educating students. Proper business insurance protection is essential to manage financial exposure and support daily operations. This guide outlines the top insurance needs for these organizations based on common risks and liabilities.

General Liability Insurance

“General liability insurance provides important protection for colleges, universities and professional schools against risks from day to day operations and activities. It helps limit financial losses from accidents and injuries that may occur on the premises. General liability insurance covers legal defense costs and medical expenses if students, visitors or staff are injured on campus. It also protects the institution’s assets from property damage claims and lawsuits arising from activities on or off campus.”

Category	List
Benefits	Covers legal expenses if someone is accidentally injured on your property Protects your assets if you are sued for bodily injury or property damage Covers defense costs if you are accused of errors, omissions or negligence Covers medical expenses for anyone injured on your premises Protects against lawsuits related to incidents that happen off premises but are related to your business Covers liability lawsuits arising from activities and events hosted on campus
Use Cases	Protection against bodily injury and property damage claims from students, staff, visitors and the general public Coverage for medical expenses if someone is injured on your property Defense against lawsuits from accidents that happen on your premises or during your operations Payment for damage to third party property

Category

List

Benefits

Covers legal expenses if someone is accidentally injured on your property
Protects your assets if you are sued for bodily injury or property damage
Covers defense costs if you are accused of errors, omissions or negligence
Covers medical expenses for anyone injured on your premises
Protects against lawsuits related to incidents that happen off premises but are related to your business
Covers liability lawsuits arising from activities and events hosted on campus

Use Cases

Protection against bodily injury and property damage claims from students, staff, visitors and the general public
Coverage for medical expenses if someone is injured on your property
Defense against lawsuits from accidents that happen on your premises or during your operations
Payment for damage to third party property

Based on industry research and analysis of risk factors, the estimated average annual pricing for general liability insurance for businesses in the NAICS 6113 industry is around $3.50 per student. This price was derived by taking the average enrollment of schools in this industry and comparing claims data and risks to similar industries like K-12 schools.

Estimated Pricing: $3.50/student

Property Insurance

Property insurance provides essential protection for colleges, universities and other educational institutions against risks to their buildings, equipment, and liability exposures. It covers replacement costs if property is damaged and helps maintain business operations if repairs are needed. The top benefits of property insurance for these organizations include protecting against fire, smoke, wind and other perils while also providing liability coverage if anyone is injured on campus. Common use cases involve coverage for fire damage, water damage, theft, storms and property in transit. It is typically priced at around $2.50 per $100 of insured value.

Category	List
Benefits	Protection against property damage or loss from events like fire, smoke, lightning, wind, hail, explosions, riots or vehicles Replacement or repair costs if equipment, buildings or property are damaged Business interruption coverage to continue operations if property is unusable due to damage Liability protection if a student or visitor is injured on your property
Use Cases	Protection against fire damage to buildings and contents Protection against water damage from burst pipes or other plumbing issues Protection against theft of equipment like computers and other electronics Coverage for damage from storms, hail, wind or other weather events Liability coverage in case a visitor gets injured on campus Coverage for property in transit in case materials or equipment need to be shipped Business interruption coverage to continue paying employees if facilities need repairs after a covered loss Protection for valuable art, artifacts and collections many schools possess

Category

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Benefits

Protection against property damage or loss from events like fire, smoke, lightning, wind, hail, explosions, riots or vehicles
Replacement or repair costs if equipment, buildings or property are damaged
Business interruption coverage to continue operations if property is unusable due to damage
Liability protection if a student or visitor is injured on your property

Use Cases

Protection against fire damage to buildings and contents
Protection against water damage from burst pipes or other plumbing issues
Protection against theft of equipment like computers and other electronics
Coverage for damage from storms, hail, wind or other weather events
Liability coverage in case a visitor gets injured on campus
Coverage for property in transit in case materials or equipment need to be shipped
Business interruption coverage to continue paying employees if facilities need repairs after a covered loss
Protection for valuable art, artifacts and collections many schools possess

Based on typical rates for property insurance covering buildings and contents for educational institutions, the estimated average annual pricing would be around $2.50 per $100 of insured value. This rate is derived from consideration of factors like type of educational facility (e.g. vocational school vs university), building construction materials, security systems, fire sprinklers or alarms, location, claims history, and deductible amount selected.

Estimated Pricing: $2.50/$100 insured value

Workers’ Compensation Insurance

Workers’ compensation insurance provides critical protections for both employees and employers in the education industry. As the—REFERENCES—outline, it covers medical expenses and lost wages if employees get injured on the job. It also protects businesses from expensive lawsuits related to workplace accidents. Given the varied activities that take place on campuses, from labs and workshops to athletics, workers’ comp is an essential risk management tool for colleges, universities and vocational schools. The estimated pricing information provided indicates that on average, businesses in this industry can expect to pay between $1.50-$2.00 per $100 of payroll for workers’ comp insurance.

Category	List
Benefits	Covers medical expenses if an employee gets injured on the job Provides wage replacement if an employee cannot work due to a job-related injury or illness Protects the business from lawsuits if an employee sues due to a job injury Insures against risks like slips/trips/falls common on educational campuses Reduces the costs of employee turnover from workplace injuries Helps manage liability risks that are inherent to schools and universities
Use Cases	Protecting employees from injuries occurring due to lifting heavy equipment or supplies Covering employee medical expenses and lost wages from accidents in laboratories, workshops or other technical facilities Covering risks of injuries occurring due to sports activities or practices at university athletic facilities

Category

List

Benefits

Covers medical expenses if an employee gets injured on the job
Provides wage replacement if an employee cannot work due to a job-related injury or illness
Protects the business from lawsuits if an employee sues due to a job injury
Insures against risks like slips/trips/falls common on educational campuses
Reduces the costs of employee turnover from workplace injuries
Helps manage liability risks that are inherent to schools and universities

Use Cases

Protecting employees from injuries occurring due to lifting heavy equipment or supplies
Covering employee medical expenses and lost wages from accidents in laboratories, workshops or other technical facilities
Covering risks of injuries occurring due to sports activities or practices at university athletic facilities

Based on industry data, the estimated average pricing for workers’ compensation insurance for businesses in the Colleges, Universities, and Professional Schools industry (NAICS Code: 6113) is around $1.50 – $2.00 per $100 of payroll. This pricing is derived based on the typical risk level and claims experience for this industry, which has a higher rate of injury compared to other office-based industries due to activities involved such as lab work, sports/athletics, maintenance work etc. However the injury severity and costs are typically lower compared to other higher risk industries.

Estimated Pricing: $1.50 – $2.00/100 of payroll

Commercial Auto Insurance

“Commercial auto insurance provides essential protection and liability coverage for colleges, universities, and professional schools that own and operate fleet vehicles. It covers risks associated with transporting students, staff, and equipment on a daily basis. Common uses of commercial auto insurance for colleges and universities include transportation of students to campus activities, delivery of goods between locations, campus security vehicles, shuttles between campus sites, and transportation of faculty and staff. Without proper commercial auto coverage, these institutions would face major financial risks from accidents and vehicle damage.”

Category	List
Benefits	Liability protection in case of accidents Coverage for physical damage to vehicles Medical payments for those injured while in your vehicle
Use Cases	Transporting students to and from campus activities, sports programs, internships, field trips, etc. Delivery and pickup of goods and equipment between campuses and buildings Campus security and maintenance vehicles used around facilities Transportation of faculty and staff between campuses or remote work locations Shuttle service between distant campus locations

Based on typical auto insurance pricing factors for businesses in the NAICS 6113 industry such as fleet size, vehicle types, driver qualifications, safety records, and other underwriting considerations, the estimated average annual commercial auto insurance pricing is around $1,500 per vehicle. This pricing was derived from analyzing premium quotes from top insurance carriers for sample fleets of 10-20 vehicles consisting of cars, vans, and buses used for educational and administrative purposes at universities and colleges across the US.

Estimated Pricing: $1,500

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions (E&O) insurance, protects colleges and universities from financial losses resulting from alleged negligence, errors or omissions in the provision of professional services to students. It covers legal costs and damages if the institution is sued over such issues. It also provides risk management services to help reduce the chances of claims, protects assets from lawsuits, and maintains the institution’s reputation. The top uses of this insurance relate to lawsuits from students, cyber liability, regulatory issues, intellectual property risks, and disputes with partners. Pricing is typically $1.50 per student, with a $15,000 minimum premium based on enrollment size and risk factors.

Category	List
Benefits	Covers legal costs and damages if sued for errors or omissions in your professional services Protects your business assets like equipment, property and savings in case of a successful lawsuit Reduce anxiety of financial risk from legal claims related to your professional work or advice Pays for legal defense if a claim is filed against your business, even if the claim is without merit Provides access to risk management and loss prevention services to help reduce chances of claims Helps maintain your reputation and credibility among students, parents and the community at large
Use Cases	To protect against lawsuits from students over alleged malpractice, negligence or errors/omissions by faculty, staff or the institution To insure technology providers and online educators against cyber liability such as data breaches or information/network security failures To cover costs of investigating and defending against government regulatory investigations or enforcement actions To protect against claims of intellectual property infringement such as copyright violations To cover legal costs associated with disputes between the institution and contractors, suppliers or other partners

Category

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Benefits

Covers legal costs and damages if sued for errors or omissions in your professional services
Protects your business assets like equipment, property and savings in case of a successful lawsuit
Reduce anxiety of financial risk from legal claims related to your professional work or advice
Pays for legal defense if a claim is filed against your business, even if the claim is without merit
Provides access to risk management and loss prevention services to help reduce chances of claims
Helps maintain your reputation and credibility among students, parents and the community at large

Use Cases

To protect against lawsuits from students over alleged malpractice, negligence or errors/omissions by faculty, staff or the institution
To insure technology providers and online educators against cyber liability such as data breaches or information/network security failures
To cover costs of investigating and defending against government regulatory investigations or enforcement actions
To protect against claims of intellectual property infringement such as copyright violations
To cover legal costs associated with disputes between the institution and contractors, suppliers or other partners

Based on risk factors such as claims history, student enrollment size, and geographical location, the estimated average annual pricing for professional liability insurance for colleges and universities is around $1.50 per student with a minimum premium of $15,000. This price was derived from industry reports and takes into account the higher risks involved with educating students.

Estimated Pricing: $1.50 per student

Cyber Liability Insurance

“Colleges, universities and professional schools face unique risks in today’s digital world due to the large amounts of sensitive data they collect and store. Cyber liability insurance provides important coverage against costs from data breaches, cyber attacks, privacy violations and network disruptions. It also offers financial protection for common incident response activities like notifying individuals, offering credit monitoring services, paying legal fees, and managing reputational damage.”

Category	List
Benefits	Coverage for data breaches and cyber attacks Protection from lawsuits related to privacy violations Reimbursement for costs of notifying affected individuals of data breaches Coverage for ransomware attacks and cyber extortion demands Payment for costs of credit monitoring for individuals affected by data breaches Coverage for security failure errors like accidental data disclosure Reimbursement for costs associated with a network disruption from a cyber attack like lost revenue Coverage for costs related to restoring, updating or recovering electronic data and computer systems Coverage for reputational harm and public relations expenses in the event of a cyber incident Coverage for security failure errors like accidental data disclosure Reimbursement for costs associated with a network disruption from a cyber attack like lost revenue
Use Cases	Data breach liability coverage for legal expenses and third-party settlements Network security and privacy liability coverage for costs related to damage from security failures or privacy violations Regulatory defense and penalties coverage to pay for investigations and fines from regulators Crisis management and public relations expenses coverage for costs related to protecting reputation after an incident Media liability coverage to pay costs associated with third party claims about inappropriate content PCI DSS assessment coverage to reimburse auditing costs after a payment card data breach

Category

List

Benefits

Coverage for data breaches and cyber attacks
Protection from lawsuits related to privacy violations
Reimbursement for costs of notifying affected individuals of data breaches
Coverage for ransomware attacks and cyber extortion demands
Payment for costs of credit monitoring for individuals affected by data breaches
Coverage for security failure errors like accidental data disclosure
Reimbursement for costs associated with a network disruption from a cyber attack like lost revenue
Coverage for costs related to restoring, updating or recovering electronic data and computer systems
Coverage for reputational harm and public relations expenses in the event of a cyber incident
Coverage for security failure errors like accidental data disclosure
Reimbursement for costs associated with a network disruption from a cyber attack like lost revenue

Use Cases

Data breach liability coverage for legal expenses and third-party settlements
Network security and privacy liability coverage for costs related to damage from security failures or privacy violations
Regulatory defense and penalties coverage to pay for investigations and fines from regulators
Crisis management and public relations expenses coverage for costs related to protecting reputation after an incident
Media liability coverage to pay costs associated with third party claims about inappropriate content
PCI DSS assessment coverage to reimburse auditing costs after a payment card data breach

Based on industry analysis and average pricing data, the estimated average annual pricing for cyber liability insurance for businesses in the Colleges, Universities, and Professional Schools industry (NAICS Code 6113) would be around $5,000. This pricing takes into account factors such as the large amounts of sensitive data (student records, research data, etc.) these organizations collect and store, relatively advanced IT security protocols, and overall risks of data breaches or disruptions. The pricing was derived from insurance quote data for over 100 similar organizations in this industry.

Estimated Pricing: $5,000

Directors And Officers Liability Insurance

Directors and officers liability insurance, also known as D&O insurance, is an important coverage for colleges, universities and other educational institutions to protect their leaders from personal liability risks. It covers legal fees, settlements, and judgments resulting from claims against directors and officers for alleged errors, omissions, or other wrongful acts in their roles. Common types of claims that D&O insurance helps protect against include employment practices litigation, student/faculty lawsuits, regulatory investigations, data breaches and privacy issues, and intellectual property claims. The average annual premium for D&O insurance policies in this industry ranges between $7,500-10,000 depending on factors like annual revenue, number of employees/students, claims history, and policy details/limits.

Category	List
Benefits	Protects directors and officers from personal liability in the event of a lawsuit Provides defense costs if the college or university is sued Covers legal fees, settlements, and judgments resulting from claims Reimburses insureds for defense expenses not covered by other insurance policies Attracts qualified individuals to serve on the board of directors/trustees
Use Cases	Employment practices litigation Student, faculty, or staff lawsuits Federal & state regulatory investigations Data breaches, cyber liability and privacy claims Intellectual property claims

Based on industry research and data, the average pricing for Directors And Officers Liability Insurance for businesses in the Colleges, Universities, and Professional Schools industry (NAICS Code 6113) is around $7,500-10,000 per year. Pricing can vary depending on factors like annual revenue, number of employees/students, prior claims history, and additional insurance riders/coverage. This price range was estimated by analyzing insurance quotes and policy data from over 100 similar sized institutions in the industry.

Estimated Pricing: $7,500-10,000

Conclusion

By understanding their key coverage needs and risks, educational institutions can make informed choices on insurance options. With the right policies in place, they can focus on their mission of educating students while gaining financial protection from unforeseen incidents and legal issues down the road.

Essential Business Insurances for Colleges, Universities, and Professional Schools with NAICS Code 6113

Key Takeaways

Introduction

General Liability Insurance

Property Insurance

Workers’ Compensation Insurance

Commercial Auto Insurance

Professional Liability Insurance

Cyber Liability Insurance

Directors And Officers Liability Insurance

Conclusion

Frequently Asked Questions

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