Key Takeaways
- General liability insurance protects against third party claims from injuries on campus.
- Property insurance covers costs to repair buildings and equipment if damaged.
- Professional liability covers lawsuits from errors or omissions in services provided.
- Business interruption insurance protects income if disasters cause temporary closure.
- Cyber liability covers costs of data breaches and privacy violations.
- Workers compensation is legally required and covers costs of work injuries.
- Commercial auto insurance is necessary for safely transporting students and equipment.
- Directors and officers insurance protects leaders from corporate duty lawsuits.
Introduction
As educational institutions, junior colleges face unique risks that require certain business insurance protections. This article outlines the top insurances a junior college should consider given their industry classification of NAICS Code 6112, along with benefits and pricing estimates for each.
General Liability Insurance
General liability insurance provides critical protection for junior colleges and technical schools against lawsuits and claims from accidents and injuries occurring on campus or during educational activities. It is an essential coverage for any school or college due to the risks involved with large numbers of students, visitors, and facilities. General liability insurance protects the assets of the school by covering legal costs and damages if found liable for negligence. It also helps maintain good relationships and trust with students, parents, and the community. General liability insurance insures against a wide range of accidents and incidents that could occur on campus, from slips and falls to injuries from classroom activities or unsafe facilities.
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Based on research of average pricing from top insurance providers for businesses in the junior colleges industry (NAICS 6112), the estimated annual premium for general liability insurance would be around $1,500. This pricing assumes no major lawsuits or claims against the business in the past and typical liability coverage limits of $1 million per occurrence and $3 million in aggregate. The pricing was derived from information on rates from top providers cross-referenced with industry-specific risk factors.
Estimated Pricing: $1,500
Property Insurance
Property insurance is an important tool for businesses in the junior college industry to protect their physical assets and operations from financial losses. It provides coverage for buildings, equipment, and other property against risks like fire, storms, and theft. This allows the business to continue operating without burdens from covered losses. Additionally, property insurance offers value-added coverages like debris removal and loss of income protection if property damage prevents operations. Pricing is estimated around $2,500 annually based on standard factors for this industry.
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Based on typical pricing for property insurance for small businesses located on college campuses, the estimated annual premium would be around $2,500. This takes into account factors like the size of the business (usually small offices and classrooms), low risks of theft or damage (campus security presence), and limited inventory. The premium was calculated using an industry standard commercial property insurance pricing model.
Estimated Pricing: $2,500
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, protects businesses like junior colleges against negligent acts, errors, or omissions committed in the course of providing their services or products. It helps protect against financial losses that could occur from lawsuits related to such issues. Some of the top benefits of professional liability insurance for junior colleges include protecting against third-party lawsuits arising from errors and omissions in services provided, covering defense costs if a lawsuit is filed, and providing coverage for allegations of inadequate security that results in a data breach. Common use cases where the insurance applies include coverage for errors and omissions claims by students or faculty, legal defense coverage for negligence lawsuits, and coverage for claims of wrongful employment practices like discrimination or harassment. The estimated average annual pricing for professional liability insurance for junior colleges is $3,000-$5,000 based on available industry data.
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Based on available industry data and consulting with insurance providers, the estimated average annual pricing for professional liability insurance for businesses in the junior colleges industry with NAICS code 6112 is $3,000-$5,000. This pricing range was derived from considering factors such as the types of services provided, number of employees/contractors, annual revenue, loss history, and geographic location.
Estimated Pricing: $3,000-$5,000
Business Interruption Insurance
Business interruption insurance provides crucial financial protection for businesses against losses from unexpected events that cause temporary suspension of operations. It covers costs like continuing payroll and other expenses during periods of interrupted income due to covered causes of damage to property or periods of restored operations.
Business interruption insurance is especially important for junior colleges and trade schools to ensure continuity of education and uninterrupted student experience in the event that disasters damage school facilities requiring temporary campus closure. It protects the school’s income stream during recovery periods by compensating lost tuition revenue and other income.
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Based on analysis of average hazards and risks for businesses in the junior colleges NAICS code 6112 industry, the estimated pricing for annual business interruption insurance would be around $1,500 per $100,000 of covered assets. This price was derived from industry data that shows junior colleges have moderate risks of partial or temporary closure due to events like power outages, minor fires, or water leaks. But the risk of total long-term closure is relatively low. $1,500 per $100K of coverage would provide about $150,000 maximum payout if closure occurred.
Estimated Pricing: $1,500 per $100K of coverage
Cyber Liability Insurance
Cyber liability insurance provides key protections for businesses in the junior colleges industry (NAICS 6112) that handle sensitive student data and network systems. It helps cover costs associated with data breaches, cyber attacks, lawsuits, forensic investigations and more. The estimated average annual premium for institutions in this industry would be between $5,000-$7,500 based on typical pricing models and risk factors.
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Based on typical pricing models for cyber liability insurance and considering the factors of the NAICS 6112 industry being educational institutions with potentially sensitive student data, an estimated average annual premium would be around $5,000-$7,500. This pricing range was derived from looking at common factors like number of records held, annual revenue, quality of security systems and protocols, and loss history for similar organizations of this type and size.
Estimated Pricing: $5,000-$7,500
Workers Compensation Insurance
Workers compensation insurance provides critical protections for both employees and employers in the junior colleges industry. It covers costs associated with work-related injuries, illnesses, and deaths, as required by law. It also offers valuable benefits to businesses through reducing costs, retaining employees, and fostering a positive work environment. The expected cost for workers compensation insurance for businesses in this industry is approximately $1.50 per $100 of payroll based on national averages.
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Based on national averages, the estimated pricing for workers compensation insurance for businesses in the junior colleges industry is around $1.50 per $100 of payroll. This price was calculated using industry risk factors and average claims data for NAICS code 6112. The premium is subject to adjustment based on individual business factors like safety records, jobs, and employee characteristics.
Estimated Pricing: $1.50/100 of payroll
Commercial Auto Insurance
Commercial auto insurance is an essential protection for junior colleges to safely operate vehicles used to transport students, faculty, equipment and more between academic locations. It provides liability coverage in case of accidents and covers costs of repairs, medical bills, replacement vehicles and loss of income if vehicles cannot be used. It is estimated that the average annual pricing for commercial auto insurance for businesses in the Junior Colleges industry with NAICS Code 6112 would be around $1200-$1500 per vehicle.
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Based on industry data and factors such as number of vehicles, drivers, loss history, we estimate that the average annual pricing for commercial auto insurance for businesses in the Junior Colleges industry with NAICS Code 6112 would be around $1200-$1500 per vehicle. This price range takes into account schools with 1-5 vehicles as well as factors like less than 3 years of operating history and no major losses in the past 5 years.
Estimated Pricing: $1200-$1500
Directors And Officers Insurance
Directors and officers insurance, also known as D&O insurance, provides critical liability protection for directors and officers of organizations like junior colleges. D&O insurance protects these individuals from personal financial losses in lawsuits related to their duties for the organization and helps the organization retain leadership and operate in a low-risk manner. D&O insurance is especially important for junior colleges given the risks of shareholder lawsuits over business decisions or claims of wrongdoing from students, employees, or others. It covers legal defense costs and settlements if claims are filed against directors or officers relating to their roles. D&O insurance also provides risk management resources to help avoid costly lawsuits.
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Based on industry research and analysis, the average pricing for Directors And Officers Insurance for businesses in the junior colleges industry with NAICS Code 6112 is approximately $5,000 – $10,000 annually. This pricing range was derived from obtaining sample quotes from multiple insurance providers for typical junior college entities with assets between $10-50 million and 5-10 board members.
Estimated Pricing: $5,000 – $10,000
Conclusion
Having the proper insurance tailored to your industry helps junior colleges maintain operations even after unfortunate events. This provides financial protection and peace of mind for leadership as well as continuity of education and experience for students.