We know that bundling insurance policies and coverages together will help you save anywhere from 15 to 25 percent on your insurance premiums. Also, just having one bill to pay each month for the premiums is easier to manage than multiple invoices.   

However, there are some cases where bundling your insurance policies may cost you more money than if you were to separate them.   We just had an experience with one of our charter school clients where bundling their package together would have cost them $6,000 more a year!

So with that case in mind, here are some scenarios where it might be better to separate your policies:

1. Building Coverage. 

We have found that insuring buildings for schools can be extremely tricky.   Only a limited number of insurance companies are even willing to insure school buildings because of the risk associated with them.   However, with some research and some diligent work from your agent, you may find something much cheaper. 

For example, we just had a charter school purchase a building. When we bundled the building coverage with the rest of their policies, the premium was over $12,000, which we felt was way too much premium for the coverage.   So we approached some insurance companies who will insure buildings, but not necessarily schools.   Doing it this way, we found a policy for 50 percent of the premium without sacrificing any coverages.

2. Directors & Officers Coverage.  

D&O coverage is a necessity for any school. However, the coverage and limits can vary dramatically for every school, depending upon their needs.   Depending upon the size of your school and the associated board members, it may be a good idea to look at individual policies for this coverage to ensure your school is adequately protected.

3. Employment Practices Liability Insurance. 

EPLI coverage is another complicated coverage that may not adequately address the needs of your school by just bundling it in with the rest of the policies.   EPLI is extremely important because your school is more likely to have a claim involving a current or former employee than it is to have a claim on your general liability. 

While our primary goal in working with charter schools on their insurance is to provide the right coverage at the best premium possible, this typically involves bundling as many coverages as you can into one policy. However, please keep in mind there are times when doing so may not be in the best interest of your school.

If you have any questions about these coverages and whether or not your school should bundle its policies or keep them separate, please don’t hesitate to contact our office.