Risks of academic operations

Operating a school carries a range of risks. Administrators and risk managers seeking to limit exposure may want to consider the following areas:
 

• Hiring and promotion. Educational institutions can face claims of discriminatory employee practices in violation of numerous laws and regulations. Suits can be raised by faculty and staff. Even if a claim is not valid, the institution can incur legal defence costs and reputational damage.
• Cyber and data security risk. Educational institutions have legal obligations to protect the privacy of their students’ personal information. At the same time, schools have increasingly faced hacking and cyber threats, where breaches can result in potential financial and reputational damage for the school. With an increase in remote, online learning during COVID-19 creating new vulnerabilities, institutional cyber risk is only likely to increase.
• Special events and conferences. Educational institutions often host special events and conferences. These events can provide revenue and raise an institution’s profile, but they can present risk and result in losses if an attendee is injured or property is damaged.
• Financial crime. An educational institution’s complex financial operations may cause financial crime to go undetected. Whether an employee steals outright or engages in fraud, the costs can be high. Schools may want to consider ways to strengthen accounting safeguards, as well as insure against this type of loss.
• Reputational damage. Many types of events and incidents can damage an educational institution’s reputation, undermining its ability to attract students and financial contributions. A school should consider consulting with its insurance representative to create a package policy that might help a school respond appropriately to a crisis and repair its reputation.
• Clinical trials. Research universities often participate in clinical trials and many universities with medical schools are now involved with the COVID-19 vaccine trials. These institutions may face potential product liability, medical liability, and professional liability or errors and omissions risks, as well as exposures that may require highly specialised life sciences knowledge and underwriting expertise.

Don’t forget common enterprise risks

When it comes to risk management, it makes sense for educational institutions to focus on exposures that are specific to their sector. But universities and schools also have operations—and risk exposures—that are common to most large enterprises. As you review your institution’s risks, you may want to consider the following types of coverage:
 

• Property
• Cyber 
• Equipment breakdown (Boiler Machinery)
• Financial lines

Protecting school property

The best way to limit loss or damage to property is to prevent costly incidents from happening in the first place, and educational institutions can benefit from working with risk engineers to identify and minimise property risks such as:
 

• Water damage – regular maintenance and new internet-connected leak detection sensors can help prevent severe water damage, which can cost an educational institution millions of dollars for a single incident.
• Vacant premises – When unforeseen events cause lengthy building closures, the risks to the property—such as freezing pipes, sprinkler malfunctions, fires, or break-ins can increase. It’s important to take steps to protect the premises until your business resumes full occupancy and operations.
• Mold and Legionella – A potential risk posed by buildings that have been shut down or have had limited use for an extended period is the development of hazardous mold and bacteria, including Legionella, which causes Legionnaires’ disease. Regular maintenance and thorough inspections and cleaning can help to protect employees and students from potentially harmful microbes.

COVID-19 Resources

COVID-19 Information for Higher Education