EDUCATORS’ LEGAL LIABILITY AVAILABLE ENDORSMENTS AND THEIR USES
(July 2024)
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While some Educators’ Legal Liability (ELL) policies are very broad, others offer limited coverage and contain many exclusions. Insurers commonly offer a number of optional coverages, some which add back protection for exposures excluded by the basic contract. While educational facilities have many similar characteristics, they also often have very significant differences. Endorsements are often available that permit policies to be customized by selecting specific activities that are either included or excluded from coverage. The selections have a direct impact on the pricing.
Following are illustrative coverage options and endorsements available in the ELL marketplace.
Abuse or
Molestation Coverage
This endorsement responds to claims related to the alleged, actual, or threatened sexual abuse or molestation of any person in the care, custody, or control of an insured. Coverage wording should be reviewed because the form should apply to any alleged negligent employment, investigation, supervision, reporting to the proper authorities or retention of persons committing these acts. Coverage typically does not extend to the person(s) who perpetrate(s) the abuse.
Active Shooter
(or Active Assailant) Liability Coverage
This endorsement responds to claims related to injury and
added expenses arising from claims involving the insured premises or grounds
having been breached by a person using firearms or other lethal weapons with
the intent to kill and injure persons on or at the educational facility. Claims
under this endorsement are based on allegations of negligence on the part of
the facility staff in not providing adequately secure premises.
Broadcasters'
Liability Coverage
This endorsement responds to claims related to defamation, slander, false advertising, copyright, title, or slogan infringements, piracy, invasion of privacy, and profane language. It applies to educational facilities that have radio and/or television stations. Some forms may also be applicable to information broadcast via the Web.
Campus
Security or Police Liability
For institutions that have armed security and police forces, three types of coverage are critical:
· Personal injury exposures such as false arrest; unlawful detention or imprisonment; malicious prosecution; libel, slander, or defamation of character; invasion of privacy; and wrongful entry.
· Coverage for alleged or actual violations of civil rights.
· Coverage for alleged or actual failure to protect and provide proper security to students and employees.
Corporal
Punishment
This option may be available where not restricted by law. It responds to claims involving physical assault or battery as a result of administering corporal punishment (such as spanking) as a means of disciplining a misbehaving student.
Emotional
Distress Coverage
This option responds to claims involving damage caused by emotional distress or mental anguish. Coverage may be available for specific types of discrimination or for sexual harassment. Some programs may only cover hiring practices, while others may offer broader protection.
Employee
Benefits Liability Coverage
This coverage option applies to injury that arises out of any act, error, or omission in the administration of the insured’s employee benefits programs. Employee benefits programs include such programs as group life insurance, group accident or health insurance, pension plans, employee stock purchase plans, or disability benefits. This option does not include coverage for fidelity or fiduciary losses.
Employment
Practices Liability Coverage
This coverage option protects the insured against
allegations of “wrongful employment acts.” Claims may be made by persons
alleging harm, such as applicants, employees, and third parties. Incidents that
trigger this loss may be either acts or omissions.
Excess or
Umbrella Liability
Some insurers’ Educators’ Legal Liability Programs offer the option to purchase Excess Liability Limits. This option provides a layer of coverage above the limit of insurance found in the primary Educators’ Legal Liability policy.
Other insurers offer Umbrella Policies which provide a layer of coverage over all of the insured’s underlying liability exposures. Typically, these will include general liability, automobile liability, and employers’ liability as well as Educators’ Legal Liability.
Extended
Reporting Period
Since Educators’ Legal Liability policies are almost always written on a claims-made basis, a supplemental extended reporting period during which claims may be reported is available for purchase. It must be purchased within a set time period and paid for immediately. It cannot be cancelled once purchased.
Foreign,
International, or Worldwide Coverage
The coverage territory in any Educators’ Legal Liability
policy should be examined carefully. Most policies only apply to incidents
occurring in the
· Student or faculty travel to give performances
· Student or faculty travel to compete in contests, athletic events, seminars, or meetings
· Foreign student exchanges
·
Class trips or foreign-language student trips to
countries outside the
Liability
Insurance and Claim Expenses – Deductible
This option may be available on a “per claimant” and/or “per wrongful act” basis. This endorsement does not remove the insurer’s obligation to defend a claim. When used, an insurer would handle the claim, and then request reimbursement for the deductible from the insured. If the insured does not reimburse the insurer, the insurer can file suit seeking recovery for the deductible. In that case, the insured would be liable not only for the deductible amount, but also for any costs incurred by the insurer to collect the deductible.
Medical
Malpractice or Professional Liability
Care must be taken in the evaluation of this coverage. Some endorsements offer coverage only for operations of campus health centers, campus medical facilities, health programs, and athletic trainers. They may exclude coverage for teaching hospitals or clinics, and employed physicians, nurses, teachers, and students. For those exposures, additional coverages must be purchased or endorsed, sometimes using different insurers specializing in medical malpractice.
Miscellaneous
Professional Liability Coverage
This protects against other professional exposures such as counseling activities.
Outside
Directors' Coverage
This protects the named insured’s directors, offices, faculty, and staff that may, as a part of their duties, serve on the boards of other facilities, not-for-profit operations, and organizations.
Publishers'
Liability Coverage
This endorsement responds to claims related to plagiarism, defamation, libel, copyright, title, or slogan infringements, piracy, invasion of privacy, and profane language. It applies to educational facilities that have student and/or faculty publications. Compare coverages and endorsements to make sure that if faculty members publish books, articles, and other publications, there is coverage for this distinct exposure.
Retroactive
Date – Claims Made Coverage
This endorsement changes coverage from an occurrence to a claims-made basis. The form states that the policy’s protection is subject to the form’s territory and more importantly, to the displayed retroactive date. Wrongful acts that are outside of either criterion are ineligible. With regard to wrongful acts that do occur within the coverage territory and after the retro date, they may still be excluded. Such acts are barred from protection if a previous insured received notice of the act, if a prior policy applies to the act (regardless whether that policy’s coverage is available or adequate), or any insured, prior to the retro date, had reasonable suspicion that an activity was going to lead to a possible loss.