What is educator insurance?
Educator insurance is a combination of coverages designed to meet the specific needs of self-employed educators. This typically includes professional indemnity and public liability insurance, which are essential for those who provide advice and work face-to-face with students.
Additionally, electronic business equipment insurance can be useful if you rely on computers or laptops to deliver your lessons. Commercial legal expenses insurance is also valuable, helping in situations which are typically not covered by professional indemnity or public liability insurance.
Why do private educators need insurance?
Private educators face various risks that can lead to financial losses or legal issues. Here are some common scenarios where insurance is crucial:
- Unmet expectations: If a student doesn’t achieve the desired results, they or their parents might blame you and seek compensation.
- Misinterpreted comments: Statements made during lessons can sometimes be misinterpreted, leading to accusations of professional misconduct or legal action.
- Student injuries: If a student injures themselves while at your premises, they could hold you responsible for medical costs.
- Damage to essential equipment: If your laptop or computer is damaged or stolen, it can be costly to replace and disrupt your ability to work.
Professional indemnity insurance for educators
Professional indemnity insurance protects educators from claims of professional mistakes, negligence, or failure in their duty of care. This type of insurance is an affordable safety net if you need to defend a legal claim from one of your students or their parents.
What does professional indemnity insurance cover?
Professional indemnity insurance protects private educators from claims or accusations of wrongdoing related to their professional advice. Cover includes:
- Failing your duty of care
- Making a mistake
- Acting negligently
- Giving the wrong advice or recommendation
For example, you may face financial demands because:
- The school that engaged your services believes your approach didn’t deliver the expected results and they demand you pay the costs to rectify the situation.
- Your client believes they’re entitled to compensation because your conduct led to students' withdrawal from a course, resulting in refunds.
- You have accidentally shared sensitive information about a student
What professional indemnity limit do private educators need?
Be guided by your contract as well as who your clients are, the fees you receive, and the possible financial impacts if your advice goes wrong. Many tutors buy the lowest limit on offer, but legal costs in a complex case can easily go up to hundreds of thousands of pounds.
Switching your professional indemnity insurance
Typically, in the UK, you can no longer make a claim if you cancel a professional indemnity policy. Therefore, if you switch your private educator insurance provider, ensure your past work is covered, known as “retroactive cover.” This way, your past work will be covered by your new policy.
Should I keep professional indemnity insurance if I am in between work?
It’s wise to keep your professional indemnity for a time if you stop teaching. Claims against professional misconduct can surface months or years after you delivered the work. If a past client sues you for damages and you have cancelled your professional indemnity, you will not be covered.
How long you keep your cover in place is up to you; consider the type of teaching you did and the likelihood that a student might bring a claim against you. With Suited, you don’t have to pay full price if you no longer work as an educator. You can hibernate your policy, allowing you to stay insured for past work at a much-reduced cost. You can leave your policy in hibernation as long as you like.
Public liability insurance for educators
Public liability insurance protects educators from claims of injuries or property damage. It is helpful to educators who work with students face to face.
What does public liability insurance cover?
Public liability pays for your legal defence and compensation costs if you are found liable. Cover includes:
- Accidental injury or death
- Accidental property damage
For example:
- If a student visits your premises and slips, injuring themselves, you might receive their medical bill if the student believes the injury was your fault.
- Even if you’re using third-party premises, you may still be held responsible for property damage if, for example, you fail to secure the space where students leave valuable property or fail to warn them not to leave their property unattended.
Other insurance private educators buy
Portable electronic insurance
Most educators will be using a laptop or a computer to deliver their sessions and keep students’ records. Portable electronics insurance covers the cost of replacing or repairing business equipment, such as computers, cameras, or other tools of your teaching profession. Whether this equipment is yours or hired, you can insure the cost of repair or replacement should an accident happen.
Commercial legal expenses insurance
Commercial legal expenses insurance is designed to support professionals such as educators with a range of legal and tax-related matters that fall outside the scope of professional indemnity or public liability insurance.
This type of cover can provide access to advice, representation, and practical support when facing legal or regulatory challenges in the course of running your business.
Typical areas covered include:
- Legal and accountancy matters relating to your business
- Defence against criminal prosecution
- Compliance and regulatory investigations
- Pursuit of unpaid invoices (typically over a set threshold)
Examples of when it might be useful:
- You're flagged for an IR35 or other tax investigation by HMRC
- You need to chase a client for a large unpaid invoice
- You’re facing a compliance issue and require expert legal guidance
Commercial legal expenses insurance often comes with access to helplines and resources to help navigate these situations more effectively.
Shopping for private educator insurance
Whether or not you decide to use Suited insurance to protect your work, it’s worth keeping the following in mind:
Price isn’t everything
Some providers offer rock-bottom prices, but after-sales service could be lacklustre. Check how easy it is to get in contact with your insurance provider. At Suited, we offer several options and answer quickly.
The reputation of the insurer is important
Insurance needs to be there when you need it most. The payout reputation of an insurer is essential. Suited uses financially sound insurers with an A+ rating.
Many providers charge fees to amend or cancel
Low initial prices often hide additional charges to pay monthly, amend or cancel your policy. At Suited, we charge no extra fees, and you can cancel anytime with no more to pay.
Some policy wordings are restrictive or have a high excess
Some providers will offer attractive prices, but it is at the expense of cover given. Suited professional indemnity and public liability have £0 excess.
