CCSA Answers: Are There Minimum Insurance Requirements for Charter Schools?

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August 20, 2016 Question: Are there minimum insurance requirements for charter schools?

Answer: There is nothing in the charter school statutes which references minimum or maximum insurance coverage. There are standards in the insurance world but no legal requirements for charter schools. Charter school petitions have an insurance section which lists insurance coverage. Standard errors and omissions, liability and property damage coverage is normal.

It is advisable for schools to purchase as much insurance as they can afford, but certainly no less than $10,000,000 for liability. Most districts require at least that amount when negotiating Memorandums of Understanding with their charter schools. Various district authorizer agreements contain minimum insurance requirements that a charter school should be aware of before securing coverage.

As an example, through CharterSafe, a provider of group self-insurance and risk management services designed specifically for California's charter schools, members receive the following limits:

General Liability (including sexual abuse, School Board Legal, and employment practices): up to $30,000,000

Auto Liability: up to $30,000,000

Employment Practices Liability: minimum limit of $1 million

Fiduciary Liability: minimum limit of $1 million

Workers Compensation: statutory limits

Student Accident: up to $50,000 per accident

Property: as necessary per building