One of the questions we get asked by our international school clients all the time is: “What types of insurance cover am I not buying that I should be buying?”
The resulting answer usually leads to a full insurance audit by a One World Cover consultant to determine the areas where our clients might be at risk, either by not purchasing a particular type of insurance or by having insurance cover in place that is inadequate for their needs. This short overview and check-list to follow will help you to determine if your school is sufficiently covered.
International Medical Insurance
If a school is serious about hiring and retaining the best teachers available in the international schools market then including comprehensive, international-style medical insurance cover as part of your teachers’ benefits packages is an absolute minimum requirement. Many of our clients have cited concerns about health insurance cover as a key reason potential hires have turned down job offers.
Supplementary Local Medical Insurance
An increasing number of our school clients are offering private supplementary medical insurance to their local staff, in addition to the government-stipulated social health benefits. The premiums of private supplementary medical insurance (typically limited to providing cover for the country of residence) are much lower than for international-style medical insurance cover and can go a long way to reducing the gap in benefits offered between expat and local staff.
Personal Accident (PA) and Accidental Death & Dismemberment (AD&D) Insurance
Provides a compensation payout in the event of disability, dismemberment or death caused by an accident, and can be set up to cover students and staff (both local and expat) and to include a small amount of medical expenses cover.
Long-Term Disability (LTD) Insurance
Covers employees during a period of time when one cannot work due to an illness or accident. Whilst PA and AD&D insurance typically provide a compensation payout that may only last for several months, LTD insurance can cover a certain percentage of an employee’s salary until one regains the capacity to work, retires or is deceased.
Term Life Insurance
Often paired with personal accident (AD&D) and/or long-term disability (LTD) insurance, term life insurance provides a compensation payout to the insured employee’s next of kin or designated beneficiary upon the employee’s death. Other events such as terminal or critical illnesses may also trigger payout, and compensation payouts are usually linked to the employee’s salary, with typical payouts including 24 months or 48 months of the salary.
Public/School Liability Insurance
Covers accidents on school grounds to third-party persons such as parents and workers, with a compensation payout to the injured party if the school is found liable for the accident. It’s worth remembering that injuries resulting from accidents can occur unexpectedly and legal expenses can be very costly.
Employer’s Liability Insurance
Covers employers if the school is found to be liable for an employee’s death, if the employee falls ill or is disabled. Compensation payouts are usually linked to the employee’s salary, with typical payouts including 24 months or 48 months of the salary.
Provides cover for specified property against most risks to the property, such as fire, theft, storm or weather damage. Schools typically include theaters, libraries and swimming pools in the list of specified properties included in the policy. Coverage should ensure a business can replace or repair damaged property and physical assets, with premiums linked to the replacement value of the insured property.
Business Interruption Insurance
Provides cover for the loss of earnings as a result of damage or loss of business property. Reimbursement for salaries, taxes, rents, and other expenses plus net profits that would have been earned during the period of interruption can be included.
Directors and Officers Liability Insurance
Provides cover for members of boards of directors against “wrongful acts,” which might include actual or alleged errors, omissions, misleading statements, and neglect or breach of duty on the part of the board of directors.
Professional Indemnity Insurance
Provides cover for claims brought against the school due to their professional negligence.
Finally, you should ascertain if your company is mandated by law to carry certain types of insurance in the country in which your school is operating. This is just one of the many ways One World Cover can assist and ensure your school is adequately insured.