Key Takeaways
- General liability insurance protects against lawsuits from student injuries on premises or during activities.
- Professional liability (errors & omissions) insurance covers legal costs from allegations of negligent acts or omissions in professional duties.
- Property insurance covers costs to repair facilities and replaces equipment after covered damage or theft events.
- Workers’ compensation insurance provides wage replacement and medical benefits to injured employees.
- Directors & officers insurance protects personal assets of executives and board members from legal actions.
- Cyber liability insurance helps cover costs of data breaches or network security incidents.
- Employment practices liability insurance insures against lawsuits from wrongful termination, discrimination or harassment claims from employees or students.
Introduction
Businesses involved in administering education programs like schools, colleges and universities face unique risks that standard business insurance policies may not fully cover. This article explores several types of specialized insurance coverage that businesses classified under NAICS code 923110 should consider to protect their operations and assets.
General Liability Insurance
General liability insurance provides crucial protection for businesses involved in education administration against risks like injuries to students or visitors on premises. It covers both medical expenses and legal costs if accidents or incidents occur on site or during activities. General liability insurance also protects from costly lawsuits over accidental errors, omissions or claims of negligence in advice or services that result in injuries. Pricing for general liability insurance is reasonable for most education administration businesses, averaging around $2,750 annually based on typical industry factors.
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Based on typical pricing factors like number of employees, annual revenue, and risk profile of the industry, the estimated average pricing for general liability insurance for businesses in this industry would be around $2,500 – $3,000 annually. This was calculated based on industry data and benchmarks for businesses in the education services industry with 1-10 employees and under $1M in annual revenue.
Estimated Pricing: $2,750
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions (E&O) insurance, protects professionals and businesses from claims alleging negligent acts, errors or omissions stemming from their work or duties. It is especially important for companies that administer education programs due to handling sensitive student data and facilitating learning environments. Some key benefits of this type of insurance include covering legal costs if sued, protecting personal assets, paying judgments or settlements, and providing access to qualified legal counsel. Common uses of the coverage are protection against lawsuits related to errors/omissions, data breaches, injuries on premises, improper hiring, and discrimination complaints. The average estimated pricing is $2,000-$5,000 annually based on factors like revenue, employee count, claims history and programs administered.
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Based on my research, the average pricing for professional liability insurance for businesses in the administration of education programs with NAICS code 923110 is $2,000-$5,000 annually. Pricing is usually determined based on factors like annual revenue, number of employees/contractors, claims history, types of education programs administered, and geographic location. Higher revenue and employee counts usually result in higher premiums.
Estimated Pricing: $2,000-$5,000
Property Insurance
Property insurance offers important protection for businesses in the administration of education programs, helping to mitigate risks of financial loss from property damage or theft. It covers costs to repair or replace facilities and equipment, ensures continuity of operations after a covered loss event, and provides liability coverage for damage caused to others.
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Based on industry standards and average claims, property insurance for businesses in the administration of education programs with NAICS code 923110 is typically priced at $1.50-$2.50 per $100 of insured assets. The estimated average for this industry would be $2 per $100 with coverage including property damage and loss of income.
Estimated Pricing: $2 per $100 of insured assets
Workers’ Compensation Insurance
Workers’ compensation insurance provides important protections and benefits for educational institutions like schools, colleges and universities. It ensures employees are cared for and costs are managed should any work-related injuries occur through physical education, laboratory classes, maintenance activities or other duties. The top benefits include covering medical bills and lost wages for injured staff, complying with state laws, accessing claims experts, receiving injury prevention support, and reducing liability from lawsuits.
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Based on average workers’ compensation insurance rates for NAICS code 923110 (Administration of Education Programs) in the US, the estimated annual premium would be around $1.25 per $100 of payroll. This rate is derived from industry data and factors such as typical payroll amounts, accident rates, and claims for this industry segment.
Estimated Pricing: $1.25/100 of payroll
Directors And Officers Insurance
Directors and officers liability insurance, also known as D&O insurance, is an important risk mitigation tool for businesses and organizations in the education administration industry. D&O insurance helps protect the personal assets of directors and officers from legal liabilities and lawsuits resulting from their official duties and decisions for the organization. It covers legal fees, settlements, and court awards if allegations against directors or officers are found to have merit. Common coverage includes wrongful acts, errors, omissions, mergers and acquisitions, and regulatory claims. Average annual premium is around $5,000 for small to medium organizations in this industry.
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Based on research, the average pricing for Directors And Officers Insurance for businesses in the administration of education programs with NAICS Code 923110 is around $5,000 per year. This pricing was derived from getting quotes from multiple insurance providers for a small to medium sized business in this industry with 10-50 employees and $5-10 million in annual revenue.
Estimated Pricing: $5,000
Cyber Liability Insurance
Cyber liability insurance provides important coverage for education administration businesses that collect and store sensitive student and employee data. It can help cover costs related to data breaches, cyber attacks, privacy violations and other technology risks that these organizations may potentially face. Some key benefits of cyber liability insurance for these businesses include covering legal costs from lawsuits due to harms from incidents, costs of notifying individuals of compromised data, costs of responding to and investigating cyber incidents like data breaches, and providing access to experts to help properly respond to incidents. Common use cases where coverage may apply include data breaches exposing private student or staff information, ransomware attacks encrypting systems, regulatory fines for failing to protect data, and issues from online learning platforms or software putting students at risk. The estimated average annual premium for cyber liability insurance for businesses in this industry is around $2,000 according to research, but larger organizations or those with poorer security may see higher quoted prices.
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Based on our research, the average cyber liability insurance pricing for businesses in the administration of education programs with NAICS code 923110 is around $2,000 per year. This price was derived by looking at industry benchmark data and factoring in the typical number of students, staff size, annual revenue, and security measures of businesses in this sector. Larger organizations or those with poorer security practices may see higher quoted prices.
Estimated Pricing: $2,000
Employment Practices Liability Insurance
Employment practices liability insurance (EPLI) provides important protections for businesses in the administration of education programs industry by covering their defense costs and damages from common employment-related lawsuits. EPLI offers key benefits such as legal defense and representation, payment of legal fees and lawsuit damages, and protection of business assets. It also insures against common risks in this industry like discrimination, harassment, wrongful termination lawsuits from employees and students.
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Based on average pricing data from multiple insurance carriers for businesses in the administration of education programs industry (NAICS Code: 923110), the estimated annual premium for employment practices liability insurance would be around $3,000. This price was derived based on factors such as the typical number of employees, annual revenue, risk exposures, claims history, and industry standards.
Estimated Pricing: $3,000
Conclusion
Proper insurance protects both students and employees from unforeseen events while also shielding a business from financial ruin due to lawsuits, damage claims or other liability risks. The insurance policies discussed provide crucial protections tailored for companies administering education programs.