Educational institutions are increasingly exposed to an array of interrelated risks driven by their unique vulnerabilities that school administrators and financial officers must proactively manage. Their decisions, ranging from ensuring the protection of students and staff to managing financial assets, play a pivotal role in maintaining the institution’s well-being. Unison Risk Advisor’s sixth-annual benchmark reports offer valuable insights into current risk management practices and insurance purchasing decisions in both K-12 independent schools and higher education institutions.
Overview: Independent K-12 Schools
The report reveals a strong correlation between school size and insurance purchasing behavior. Larger institutions tend to secure higher coverage limits compared to their smaller counterparts. Key findings include:
- Educators Legal Liability (ELL): Coverage limits vary widely across institutions, with 58% of schools purchasing between $1 million and $5 million limits and 15% purchasing over $11 million. The largest limit reported was $40 million.
- Excess Liability: Public schools are less likely to carry excess liability coverage than private schools, and larger schools tend to demonstrate more robust protection. 56% of small schools carry excess liability limits under $10 million, while only 2% carry limits over $30 million. 11% of schools with over 1,000 students carry excess liability insurance limits greater than $30 million while 63% still maintain limits under $10 million.
- Fiduciary Liability: Most schools invest in fiduciary liability insurance, primarily to mitigate risks associated with employee retirement plans. 78% of schools purchase a $1 million limit, including 93% of small schools. 38% of schools with more than 1,000 students purchase $2 million or more, including 21% with coverage exceeding $5 million.
- Cyber Liability: 87% of K-12 schools purchase a $1 million cyber liability insurance limit while 13% purchase a limit of $2 million or more. This reflects a careful approach on cyber risk transfer, even as cyber threats continue to escalate across the education sector.
You can request the complete K-12 independent schools report here.
Overview: Higher Education
As with K–12 schools, a broad spectrum of coverage limits was observed among institutions, with larger colleges and universities consistently opting for higher levels of protection. Key insights include:
- Educators Legal Liability (ELL): 20% of 4-year colleges purchased less than $5 million of educators legal liability coverage, while 27% purchased limits of at least $25 million. The remaining schools fall between those ranges, reflecting varying risk tolerance and policy customization across institutions.
- Excess Liability: The report highlights notable differences in policy limits offered by insurance providers. 19% of schools carry a limit of less than $10 million, while 37% carry a limit of $30 million or more. The remaining schools split evenly between $10 to $29.9 million in coverage.
- Fiduciary Liability: Most colleges carry fiduciary liability coverage to manage risks associated with retirement plans. Among the schools with this coverage, 42% carry a $1 million limit, while 39% maintain limits of at least $5 million.
- Cyber Liability: Virtually all colleges and universities report having cyber liability insurance, with a clear trend indicating higher coverage limits for larger institutions. This underscores a growing awareness of the need for stronger protection in today’s increasingly digital academic landscape. Among the schools with more than 1,000 students, 63% purchase at least $3 million, while 21% keep a $1 million limit.
You can request the complete higher education report here.
Learn More
The Unison Risk Advisors' 2025 Education Benchmark reports provide valuable data across a range of critical insurance coverages. It is important to remember that the information presented is a starting point. Each institution has a distinct risk profile, and a thorough review of individual exposures remains essential for informed decision-making. By leveraging data-driven insights and collaborating with experienced risk management professionals, institutions can effectively navigate the evolving challenges of the education sector, helping to safeguard their students, staff and long-term stability.
