How Much Does School Business Insurance Cost? 2025 Rates

Schools are responsible for the safety and well-being of students, staff, and visitors every day. With so many activities, people, and facilities involved, unexpected incidents can happen at any time, from student injuries on the playground to property damage or legal claims. That’s why school insurance is essential. School insurance provides financial protection and peace of mind by covering a wide range of risks, including accidents, natural disasters, staff liability, and more.

Why Do Schools Need Insurance?

Schools need insurance because unexpected problems can happen at any time. Without insurance, even a small issue could cost the school a lot of money. For example, if a student gets hurt during recess or a storm damages the school building, the school would have to pay for medical bills or repairs on its own. That could be very expensive.

There are also other risks, like a teacher being accused of making a mistake, or school equipment getting lost or broken. Sometimes, people might even take legal action against the school. Insurance acts like a safety net, helping to cover these costs so the school doesn’t have to pay everything out of pocket.

Having insurance also shows that the school is responsible and prepared. It helps protect students, staff, and the school’s future, so learning can keep going, no matter what happens.

What Insurance Do Schools Need?

Running a school comes with more risks than many people realize. Schools are busy places, filled with students, teachers, staff, and visitors, all of whom could be involved in an accident or unexpected event. From playground injuries and property damage to staff errors or even natural disasters, schools face a wide range of potential problems every day.

Here’s a breakdown of the most important types of school insurance to consider.

General Liability Insurance

General liability insurance helps protect a school if someone gets hurt or if the school accidentally damages someone’s property. It also helps protect the school if someone claims the school was careless and caused an injury. Without this coverage, the school might have to pay these costs on its own, which can be very expensive. 

Example: A student slips on a wet hallway floor and breaks their arm. The parents file a claim against the school for medical expenses and negligence. General liability insurance can help cover the cost of the student’s medical bills and any legal fees if the case goes to court.

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates are based on average annual premiums for school institutions, compiled from both national carriers and regional insurance agencies. They reflect typical coverage limits for small-to-medium educational institutions, considering risks such as student and visitor safety, property damage, and liability exposures tied to extracurricular activities. Actual premiums will vary depending on school size, number of staff, claims history, facilities offered (e.g., labs, gyms, playgrounds), and state-specific regulations.

Workers’ Compensation Insurance

Workers compensation is an insurance that helps employees if they get hurt or sick because of their job. It can pay for medical bills, lost wages while they can’t work, and sometimes long-term support if the injury is serious. 

Example: One of your school’s janitors slips on a freshly mopped floor and gets injured. Workers’ compensation insurance covers the cost of their emergency room visit, medical treatment, and pays for their lost wages while they recover and are unable to work.

In most states, workers’ comp insurance is required for schools with employees, helping protect both the staff and the school from unexpected medical and legal expenses.

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates are based on average annual Workers’ Compensation premiums for school institutions, incorporating state-specific base rates, employee classifications, and payroll ranges typical of both small private schools and larger educational institutions. Actual premiums will vary depending on the size of the school, number of staff, claims history, and insurer underwriting practices.

Professional Liability Insurance

Professional liability insurance protects people who give advice or provide professional services, like teachers, coaches, counselors, or consultants, if someone says they made a mistake. 

Example: A parent claims their child was emotionally harmed due to a counselor’s poor handling of a bullying situation. Professional liability insurance helps cover legal costs and any potential settlement, protecting both the staff member and the school.

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates are based on average annual premiums offered by both small and large insurance agencies for school institutions. Actual premiums will vary depending on factors such as school size, number of staff, student population, claims history, coverage limits, and regional underwriting practices.

Property Insurance

This covers school buildings, equipment, and other physical assets against damage or loss. Specifically, it covers fire, theft, vandalism, storm damage, and other covered events that harm the school’s property.

Example: A fire breaks out in the school kitchen, damaging appliances and part of the building. Property insurance pays for the repairs and replacement of damaged equipment.

Here’s a look at the average annual premiums for 10 different states:

Note: Estimates reflect blended averages of commercial property premiums for school campuses sourced from both small and large insurance agencies, factoring in building values, location-specific hazards (e.g., wind, quake, theft), coverage limits, deductibles, construction type, and risk controls. Actual premiums will vary by state, carrier underwriting, and school-specific details.

Student Accident Insurance

Student accident insurance covers medical expenses if a student is injured during school activities. It also covers emergency treatment, hospital bills, and rehabilitation costs related to student injuries on campus or during school events.

Example: A student falls during recess and breaks an arm. Student accident insurance helps cover the medical bills, easing the financial burden on the family and school.

Here’s a look at the average annual premiums for 10 different states:

Note: These estimates reflect typical annual premiums schools pay for blanket student accident coverage, scaled from per-student plan pricing and adjusted for enrollment, athletic participation, and regional underwriting norms across small and large agencies. Student accident insurance generally supplements health coverage and fills gaps during school-time or athletics, with costs influenced by plan limits, deductibles, and activity risk profiles; examples include statewide programs and carrier product sheets that outline common benefits and pricing structures. Actual premiums will vary based on student count, sports offered, medical maximums, deductibles, and claims history

Schools are generally not required by federal law to carry specific insurance policies. However, the above mentioned insurance policies may be mandatory based on state laws, local regulations, and the size or nature of the school’s operations.

School Business Insurance Costs By Provider

School business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: These estimates are based on average annual premiums for IT school businesses, considering both small and large agencies and common coverages such as general liability, professional liability (E&O), cyber liability, property, and workers’ compensation. Actual premiums will vary depending on school size, student headcount, location, courses offered, claims history, and selected coverage limits.

How Much Does School Insurance Cost?

School insurance costs can vary depending on the size and needs of the school. Basic coverage, like general liability insurance, usually costs less for smaller schools with fewer staff. Larger schools with many employees and more activities often pay more for business insurance.

If a school owns vehicles, has special equipment, or needs extra protections like workers’ compensation or property insurance, the cost will be higher. Schools in different locations may also pay different amounts, depending on local risks and rules.

The price of insurance also depends on how much coverage the school chooses and if it bundles multiple policies together. While it might be tempting to pick the cheapest option, it’s important to get insurance that fully protects the school from the most likely problems it might face.

How Is Your School Insurance Cost Calculated?

School insurance costs depend on several important factors that insurance companies consider. One of the biggest is the size of the school and how many staff members it has. Smaller schools with fewer employees usually pay less, while bigger schools with many staff pay more.

The types of activities and services the school offers also affect the business insurance cost. Schools with higher risks, like those with sports programs or science labs, may have higher insurance costs. The school’s location matters too, because insurance prices can change depending on the state, city, or neighborhood.

Insurance companies also look at the school’s history with insurance claims. If the school has had many claims in the past, it might be seen as riskier and pay more. Other things that affect the cost include the value of the school’s buildings and equipment, whether it owns vehicles, and the kind of insurance coverage the school chooses. Even how the school is set up legally, like being a nonprofit or part of a larger district, can change the price.

Tips To Lower Your School Insurance Costs

Insurance costs can add up quickly for schools, but there are easy ways to keep your insurance costs under control without paying more than you need. The key is to understand which factors you can control and take proactive steps to minimize risk.

• Bundle your policies. You can save money by combining general liability, property insurance, and other coverages into one plan called a  Business Owner’s Policy (BOP) to qualify for a multi-policy discount.
• Consider Hired and Non-Owned Auto (HNOA) coverage. If you or your employees use personal vehicles for work, HNOA can be more cost-effective than a full commercial auto policy.
• Keep a clean claims history. Avoiding claims through proper training and safety procedures can lower your risk profile and lead to reduced premiums over time.
• Invest in safety. Training employees and using safety procedures helps prevent injuries. This can reduce workers compensation claims and lower your insurance costs. 
• Raise your deductible. Opting for a higher deductible can lower your monthly premium, but be sure your business can absorb the extra out-of-pocket cost in case of a claim.
• Review your coverage annually. Adjust your policies as your business evolves to avoid paying for coverage you no longer need.
• Compare quotes from multiple insurers. Rates vary widely, so shopping through Insuranceopedia can help you find the best deal for your current needs.

Taking a strategic approach to your insurance planning can make a real difference. With a little research and regular review, you can stay protected and cost-efficient at the same time.

Following these steps helps ensure you’re properly insured and set up to handle risks confidently and professionally.