With more than 50 million students enrolled in public schools across the U.S., educational institutions hold a crucial place in our communities. But this also means they’re exposed to a wide range of risks. From property damage and casualty claims to growing cybersecurity threats, schools today need stronger, more customized insurance support than ever before.
If you’re an risk manager professional working with or for school districts and educational organizations, it’s essential to stay informed on the latest trends and strategies in the public entity space. Here’s a practical guide to help you better support your education clients and strengthen your relationships with them.
Property Market: Easing Pressure, But Not Without Challenges
After a tough few years, the property insurance market for public entities saw some relief in 2024. However, large-scale natural disasters remain a pressing concern. This is why the focus on better data collection and risk modeling is stronger than ever.
Risk models like RMS 23, when used alongside RMS 21, offer a clearer picture of how catastrophic events might affect schools. Using these tools effectively can help shape more accurate and compelling insurance applications.
To boost the success of a property submission, start renewal discussions early. Use that time to highlight the positive aspects of a school district’s performance and risk management efforts. It’s also smart to revisit policy terms such as deductibles, limitations and endorsements to make sure they align with the school’s needs and budget.
Casualty Market: Responding to Growing Legal and Social Risks
The casualty insurance space for educational institutions is facing increasing pressure from legal, societal and technological developments. One major concern is the rise in active-shooter incidents. These devastating events often result in multiple claims across various coverage lines – liability, workers’ compensation and property.
To help your clients better manage these risks, encourage them to invest in crisis management policies and adopt strong access-control procedures. Partnering with local law enforcement can also enhance preparedness.
In addition, technology is playing a bigger role in casualty risk management. Predictive analytics and AI-driven tools are helping insurers identify trends, select legal strategies and strengthen defenses. These innovations can help schools proactively address potential risks before they escalate.
Nuclear Verdicts and Third-Party Litigation Funding
Another major issue shaping the casualty insurance landscape is the rise of nuclear verdicts – extremely high jury awards that are often driven by public skepticism and negative perceptions of institutions. These verdicts are raising claims costs and leading to broader rate increases.
At the same time, third-party litigation funding is adding complexity to legal battles. With hedge funds backing lawsuits, claims can drag on and become more expensive. This trend has made underwriters more cautious and driven a need for tighter loss controls and legal strategies.
Cyber Liability: Schools at Higher Risk
Cyber threats are now one of the biggest risks facing school districts. With limited cybersecurity resources, schools have become a frequent target for hackers. As a result, insurance carriers are giving priority to clients that take cyber protections seriously.
One of the top requirements is multi-factor authentication (MFA). Underwriters expect MFA to be in place for remote access, email, privileged IT accounts and backup systems. Schools that fall short on cybersecurity basics like MFA, patch management or RDP controls may find it difficult – or impossible – to secure coverage.
Don’t Overlook SAM Insurance
Schools are often required to carry SAM (Sexual Abuse and Molestation) insurance due to the sensitive nature of working with minors. Unfortunately, claims in this area have become more frequent, and they can carry severe financial and reputational consequences. It’s important to ensure your education clients understand the coverage limits, exclusions and reporting protocols involved in SAM policies. Encourage districts to implement strong background checks, staff training programs and clear reporting procedures. These preventative steps not only protect students but also help schools present a more favorable risk profile to underwriters.
Communication Is Key: Engage with School Decision Makers
With school boards and administrative teams changing frequently, it’s important to stay in regular contact with the decision makers at School Districts. These conversations help school leaders make smarter decisions about coverage options and risk management strategies.
When talking with school districts, be sure to cover:
What risks they’re exposed to and how they’re managing them
Their comfort level with self-insured retention or first-dollar coverage
What loss prevention measures are in place
Their current training programs for governance and risk management
Budget constraints and long-term financial goals
How Paperless Insurance Can Support You
Finding the right insurance coverage for schools can be complex, but you’re not in it alone. Paperless Insurance Services, Inc has been offering tailored insurance programs to help educational institutions and its vendors stay protected. We have an extensive portfolio of Property & Casualty Carriers, as well as specialized tech risk management companies that offer Cyber liability insurance. Separately, we want to acknowlegde our access to the exclusive SAM (sexual abuse and molestation) insurance programs that can be tailored to a specific contract or provide a blanket SAM coverage anywhere your business goes.
Our offerings include:
Public Entity Workers’ Compensation: Broad, customizable coverage to meet school-specific needs.
Public Entity Casualty: A complete program for casualty risks, including excess liability and delegated authority.
Public Entity Property: Flexible excess property insurance solutions.
Coverage for schools, sports programs and special events.
Our team is committed to helping you provide creative, effective solutions that serve your clients and communities.
If you’re ready to better support your school district clients and navigate today’s risk environment with confidence, connect with the experts at Paperless Insurance. Let us help you craft coverage that works for your education organization. No risk is too big, we can offer comprehensive coverage to a large school district with hundreds of schools. Contact us today: 877-239-0067 x 111.