Insurance

Insurance is a device for spreading risk, and risks are classified in many ways. By law, schools must have certain types of insurance.

The risks that are likely to affect schools are:

Property risks, e.g. loss or damage to buildings, contents or other school property.
Financial risks, e.g. the extra cost of running a school following a fire, or unexpected legal expenses
Liability risks, e.g. the legal obligation to compensate a pupil, teacher or member of the public who is injured as a result of negligence on the part of someone representing the school
Personal injury risks, e.g. accidental bodily injury to pupils or staff, or assault upon them
Miscellaneous risks, e.g. a variety of types of insurance, such as motor, school journey or travel insurance.

Who and what should be covered by insurance?

This question is covered by the principle of insurable interest. Put simply, this means that those covered by the insurance must stand to lose financially if the insured property is lost or damaged, e.g. property insurance should cover the interest of the organisation or body of people that owns the property or has financial responsibility for it. The same principles apply to liability insurance, e.g. employers’ liability insurance which covers the legal liability for injuries to employees that might arise in the course of their employment. The insurance arrangements should also provide cover for claims arising from the actions of staff acting within the scope of their employment, to ensure that staff who volunteer to perform roles such as first-aider or who provide a medical support role are acting within the scope of their employment and are fully indemnified. There may also be insurance issues for special activities organised by a school, such as educational visits.

Is insurance compulsory?

Some insurance is compulsory in law. Employers’ liability insurance is compulsory if school staff are not employed by the LEA, e.g. if the school governing body is the employer. LEAs are not required to insure by law and may ‘self-insure’ the employers’ liability risk if they wish.

Public liability insurance and ‘professional’ liability insurances (officials’ indemnity, governors’ liability) are not compulsory but are essential in practice.

Who is responsible for funding and arranging insurance?

The funding for insurance for maintained schools is currently governed by regulations under the School Standards and Framework Act 1998. LEAs can retain funding centrally for insurance within their Local Schools Budget. Alternatively, they may delegate resources for insurance to all or some schools. LEAs are not obliged to delegate what a school actually has to spend on insurance, only the ‘appropriate portion’ of the LEA’s planned expenditure on insurance. If a school has been delegated funds for insurance in its budget share, the governing body of the school is responsible for arranging insurance.

For further information on insurance please refer to the DfES guidance, Insurance: A Guide for Schools (ref. DfES/0256/2003).

Source: Insurance: A Guide for Schools, DfES, 2003.

School emergency-management plan Health and safety in schools Responsibilities Risk assessment Insurance School security Educational visits First aid Evacuation procedures Calling emergency services Counselling Media handling Communicating with parents	Insurance Insurance is a device for spreading risk, and risks are classified in many ways. By law, schools must have certain types of insurance. The risks that are likely to affect schools are: Property risks, e.g. loss or damage to buildings, contents or other school property. Financial risks, e.g. the extra cost of running a school following a fire, or unexpected legal expenses Liability risks, e.g. the legal obligation to compensate a pupil, teacher or member of the public who is injured as a result of negligence on the part of someone representing the school Personal injury risks, e.g. accidental bodily injury to pupils or staff, or assault upon them Miscellaneous risks, e.g. a variety of types of insurance, such as motor, school journey or travel insurance. Who and what should be covered by insurance? This question is covered by the principle of insurable interest. Put simply, this means that those covered by the insurance must stand to lose financially if the insured property is lost or damaged, e.g. property insurance should cover the interest of the organisation or body of people that owns the property or has financial responsibility for it. The same principles apply to liability insurance, e.g. employers’ liability insurance which covers the legal liability for injuries to employees that might arise in the course of their employment. The insurance arrangements should also provide cover for claims arising from the actions of staff acting within the scope of their employment, to ensure that staff who volunteer to perform roles such as first-aider or who provide a medical support role are acting within the scope of their employment and are fully indemnified. There may also be insurance issues for special activities organised by a school, such as educational visits. Is insurance compulsory? Some insurance is compulsory in law. Employers’ liability insurance is compulsory if school staff are not employed by the LEA, e.g. if the school governing body is the employer. LEAs are not required to insure by law and may ‘self-insure’ the employers’ liability risk if they wish. Public liability insurance and ‘professional’ liability insurances (officials’ indemnity, governors’ liability) are not compulsory but are essential in practice. Who is responsible for funding and arranging insurance? The funding for insurance for maintained schools is currently governed by regulations under the School Standards and Framework Act 1998. LEAs can retain funding centrally for insurance within their Local Schools Budget. Alternatively, they may delegate resources for insurance to all or some schools. LEAs are not obliged to delegate what a school actually has to spend on insurance, only the ‘appropriate portion’ of the LEA’s planned expenditure on insurance. If a school has been delegated funds for insurance in its budget share, the governing body of the school is responsible for arranging insurance. For further information on insurance please refer to the DfES guidance, Insurance: A Guide for Schools (ref. DfES/0256/2003). Source: Insurance: A Guide for Schools, DfES, 2003.	Insurance: A guide for schools (DfES 2003)
The advice contained on this site should not be taken as an authoritative interpretation of the law. That is a matter for the courts.