Did you know there are more than 50M students enrolled in U.S. public schools? These institutions play a pivotal role in the community and are exposed to several types of risk. Leverage the following insights to keep a pulse on industry trends and to guide conversations with your education accounts.

 

Trends shaping the educational entity market

Property

The public entity property market experienced notable relief throughout 2024. However, large catastrophic events remain a significant challenge and underscore the importance of data collection and model improvements. These new systems and models have become even more important as storm activity increases year after year. RMS 23 has slowly been embraced and using it in conjunction with RMS 21 offers an advantage to better understand potential impacts.

A strong submission can significantly improve the overall attractiveness and effectiveness of the insured. Be sure to schedule renewal meetings early to allow enough time to craft a compelling, positive narrative about the entity’s performance. This helps set a favorable tone with underwriters. You may also want to focus on adjustments to key terms and conditions, such as deductibles, endorsements and limitations, as well as pricing.

Casualty

The public entity casualty market continues to face challenges that arise from evolving legal, technological and actuarial factors. For example, the frequency and severity of active-shooter claims have intensified. These claims involve multiple claimants and affect various lines of coverage, including liability (for student injury or death), workers’ compensation (for employee injury or death) and property damage.

You can help support your clients by educating them about securing a crisis-management policy, implementing best practices for campus-access control and collaborating with local law enforcement. The adoption of technology and innovative defense strategies is a crucial component of risk management across the public entity sector. The use of predictive analytics, facilitated by data scientists, is enhancing insurers' ability to identify and mitigate risks, as well as select defense counsel and law and motion filings.

 

Increase of nuclear verdicts and third-party litigation funding

The growing prevalence of nuclear verdicts is not only escalating the cost of claims but also contributing to rate increases across the board. Several factors can contribute to the growth of nuclear verdicts, such as corporate mistrust, social pessimism, erosion of tort reform and public desensitization of large numbers.

Another growing trend in the public entity casualty market is the influence of third-party litigation funding. The involvement of litigation hedge funds is contributing to higher claim values and a more complex litigation environment. It has also led to heightened scrutiny from underwriters and markets, as they adjust to the evolving risk landscape.

 

Cyber liability claims on the rise

Cybercriminals often target schools due to their insufficient cybersecurity infrastructure. As a result, carriers have a sharp focus on institutions that have implemented controls and safeguards. Schools that don’t address multi-factor authentication (MFA), domain servers, remote desktop protocol (RDP) and patches will continue to be without options.

The primary security control that insurers continue to look for is MFA. Underwriters are looking for MFA to be deployed for remote access (whether through a VPN or otherwise), email and privileged IT accounts, as well as for securing backups.

You can learn more about how to access public entity cyber liability insurance here.

 

Talk to school board members and district decision makers

Given the evolving nature of school-district leadership, it’s important to hold regular conversations with your clients to help them make informed decisions when choosing liability coverage. Be sure to address:

  • Risk exposure, including an understanding of risk management and any potential legal implications
  • Risk tolerance (e.g., what is the comfort level with a self-insured retention (SIR) or a first-dollar workers’ compensation program?)
  • Loss control/risk prevention measures
  • Training program schedule, including but not limited to governance training, pool management and risk management
  • Budget considerations

 

We help you win

Finding coverage for school districts can be challenging. The experts at Amwins Specialty Casualty Solutions (ASCS) can help. We’re the largest MGA in the public entity space, offering the following insurance programs to help protect public entities:

  • Public Entity Workers’ Compensation: Workers’ compensation insurance solutions spanning multiple programs and coverage needs.
  • Public Entity Casualty: Fully delegated program for workers’ compensation and excess liability casualty risks.
  • Public Entity Property: Public entity excess property solutions that offer flexibility.

We also offer insurance coverage for schools, sports and events. Learn more about how our creative solutions can help you protect and serve your clients here.