Why Schools Should Invest In Insurance?

Healthy schools are the foundation of a thriving community. Lenders, such as non-banking financial companies or other school insurance companies, are familiar with the strengths of each school, especially those in rural areas with high potential. For these unaided schools, lenders offer specialised loan coverages to help protect the school’s teachers, educators and staff. But there’s another side to it that no one talks about!

In recent years, there have been multiple incidents involving school buses getting into accidents, damage to school property from natural disasters, and instances of discrimination and assault on school grounds. One of the most recent and tragic examples was a fire at a coaching institute in Surat, Gujarat that resulted in the deaths of 19 students. Another example is the incident at a school in Gurugram where a student was murdered.

For educational institutions, it is a must to:

• Prioritize the safety and wellbeing of their students
• Protect their property and assets through adequate insurance coverage

With so much at stake, including the lives and safety of children, the school’s reputation, and hard-earned assets, it is crucial to take necessary steps to mitigate potential risks.

In a quest to help your school grow and prosper, and most importantly be safe, lenders or NBFCs quote your coverage with those that best suit your unique needs. Additionally, they offer many additional tools and resources to help you run your school effectively, reduce risk, and drive success.

What is school insurance?

Insurance for schools or educational institutions is a comprehensive package specifically designed for private schools. It is important for schools to take insurance because it provides protection against potential financial losses that may occur as a result of unforeseen events or accidents. This can include damage to the school building and its contents, personal accidents to employees, and liability claims. 

Without insurance, a school may be financially responsible for covering the costs of any damage or claims, which can be a significant burden. School insurance can also provide peace of mind for school leaders, teachers, and parents, knowing that the school is protected and that the education and safety of the students are not compromised. Additionally, some lenders may require schools to have insurance before providing funding. 

School insurance includes coverage for personal accidents for employees, liability insurance, and a range of other coverages. School insurance is, now more than ever, important as schools are actively working to adapt and recover from disruptions caused by COVID-19.

Also Read: A guide to finding the best Private school loan providers in India | Varthana

Benefits of school insurance for affordable private schools

Affordable private schools face a wide range of risks that can impact education. Some of the top insurance concerns for schools include failure to provide education, sexual harassment, breaches of duty, neglect, errors or omissions, sports injuries, and bullying behaviour by students. There are several reasons why affordable private schools should invest in insurance:

1. Protection against financial loss: 

Insurance can provide protection against potential financial losses that may occur as a result of unforeseen events or accidents such as natural disasters, theft, or liability claims.

2. Compliance with legal requirements: 

Some states or countries require schools to have certain types of insurance to comply with legal regulations.

3. Peace of mind: 

Insurance can provide peace of mind for school leaders, teachers, and parents, knowing that the school is protected and that the education and safety of the students are not compromised.

4. Fundraising: 

Insurance can be a requirement for some lenders or investors to provide funding to a school.

5. Employee protection: 

Some insurance policies also provide coverage for employee health and personal accidents, which can help protect the school from any financial losses related to employee injuries or illnesses.

6. Affordability: 

Affordable private schools are usually run on tight budgets, and unexpected financial losses can be very detrimental. Insurance can help protect the school from these losses and allows the school to continue to operate.

7. Safety and well-being of students: 

Affordable private schools usually cater to students from low-income families, and the school is responsible for the safety and well-being of students while they are in school. Insurance can ensure that the school can meet its responsibility in case of any unforeseen events.

8. Reputation of the school: 

All the stakeholders of an educational institution — parents of students, investors, teachers and staff — are more inclined to work with a professional school that demonstrates care for its students and employees.

Overall, obtaining insurance for an affordable private school is essential in safeguarding the institution from any unforeseen financial losses, while also ensuring the safety, well-being, and educational continuity for the students.

Insurance for Schools: Features

Schools are often exposed to risks that are beyond their control. Lenders offer a variety of school insurance products that help protect your school from risks that could have a significant financial impact if not covered. The offerings generally include:

• Loan Protection: This product protects the school in the unfortunate event that the school leader suffers from a disability or other unforeseen event. You (the school leader) can avail the insurance by paying the premium based on your age and the extent of the loan borrowed from the lender.
  In the event of any eventuality happening to the school leader who has availed the loan protection, the school will not be liable to repay the loan and the insurance company will clear the loan on behalf of the school, so the school will not have any burden. Having this coverage ensures that the school’s legacy will continue even beyond the life of the school leader.

• Motor Insurance: We all try to avoid accidents, but they can be financially devastating when they occur. A comprehensive motor insurance policy protects you from this risk by covering damages to third-party and third-party property, as well as your own losses. This insurance is invaluable in case of financial losses resulting from an accident or other damages sustained by the vehicle. 
• Life Insurance: When an individual who is a key provider suffers a tragedy, those who depend on this individual suffer both the tragedy of losing someone they loved and the hardship of making ends meet without them. Life insurance policies provide a lump sum payment to the beneficiaries to help address this unfortunate situation.

Varthana offers a variety of insurance products for schools in partnership with insurance partners, such as loan protection and motor insurance, to help protect your school from significant financial risks. Unaided private schools should purchase this insurance, as it is necessary to protect the school’s liability. Our school insurance is tailored to meet the needs of any school size. Furthermore, insurance for schools provides financial coverage when things go wrong. You can also learn about Varthana School Loans and its benefits. Apply now