FAQ - School insurance

As part of the Local Education Authority you will enjoy the financial benefits of being part of a bulk-buying consortium. By seeking an alternative quotation though you may find that an insurance programme can be created that is more specific to your own needs and requirements. The end result is a more appropriate insurance programme reflective of your own exposures and risks and which takes into account your own investment in efforts to reduce the likelihood of losses occurring.

In 2008 the DCSF asked the Crescent Purchasing Consortium (CPC) to create the means by which new and existing academies could access appropriate and competitive insurance cover. Towergate are part of the panel of providers. Please contact us for full details of how to access the CPC.

A Long Term Agreement (LTA) has been signed in good faith and the basis of this, which is that if the insurers maintains the rates you are obliged to renew with them, needs to be honoured. However an LTA is not a guarantee of the rate and if the insurer increases the rates the agreement is broken and you are able to source alternatives.

Whether you are becoming an academy, trust or foundation school you will need to make provision for your own insurance programme. There are a number of areas of insurance cover you will need as soon as the new entity is formed including governor's & trustees indemnity insurance and employers liability insurance. The former will indemnify the governors and trustees of the new entity for their legal costs arising from allegations of mis-governance. Employers liability will provide the necessary indemnity to the trust as an employer against allegations of injury by its own employees.

You may also wish to consider the need for motor and associated occasional business use in the meantime.

If the school is hiring the property to the public you will need to consider hirer's indemnity alongside the public liability cover that will also need to be in place.

Once the school property has been transferred to the trust you will need to arrange the necessary property damage insurance including appropriate business interruption cover.

It is important to weigh up a number of factors when considering different insurance proposals. It can be easy to resort to a pure price comparison however the danger here lies in selecting a provider who is not giving all the cover you require.

In the past key aspects of cover have been omitted which can make the price look attractive but could leave you crucially exposed. An example of this is the omission of an abuse extension under the liability section. These extensions have been included to protect the school and provide the financial means in mounting a legal defence when allegations of abuse occur.

It is also important to consider the quality of the service that supports a proposition. Questions around the experience and knowledge of the individuals with who you will be dealing are important, together with the level of contact they anticipate providing you with. A school will face many changes in the course of twelve months and these need to be considered and whether these pose a change which needs to be incorporated within the insurance cover has to be understood. This is why quarterly contact with your insurance broker is important.