From time to time, we like to present different claims scenarios we have seen associated with charter schools and discuss the insurance coverage that will protect your school in such a claim.

Phantom Vendor:

Recently we came across a situation where a charter school’s office manager recommended an outside consultant to reduce some of the school’s vendor costs.  The school approved the outside consultant and allowed the office manager to hire the consultant herself.  The office manager then created a phony consulting firm and billed the school for services never provided.  The office manager’s actions went undetected for over a year before accounting began to question the billing amounts.

Result:

An audit determined the office manager had stolen more than $50,000 from the school.

Insurance Implications:

Thankfully, the charter school had purchased a crime policy that included coverage for employee theft and employee dishonesty.  With limits of over $100,000, the school’s insurance policy covered the entire claim.