By adding the Affiliated FM Education Endorsement to the proVision 4100 policy, educators of all types will gain valuable coverage.
Clients in the education field face unique exposures, including a high concentration of values, potentially hazardous material, expensive equipment, research and development exposure and business income (tuition and fees) dependent on the school-year cycle. Ensuring your education clients have the market-leading coverage that will respond to these specific exposures is important. By adding the Affiliated FM education endorsement to the proVision 4100 policy, educators of all types gain the following valuable coverage:
- Emergency Evacuation Expense
- Fund Raising Expense
- Student and Teachers Personal Property
- Prizes and Giveaways
- Professional Employee Replacement Expense
- Research and Development Animals and Experiments
- Student and Teachers Relocation Expense
- Tuition and Fees
Back to school
One of the primary concerns of education clients is keeping classrooms full. That’s why our education endorsement offers an extended period of indemnity, allowing your clients to extend their indemnity period into additional terms—potentially up to one year—to help maintain their income at pre-loss levels. Our education endorsement also provides property and BI coverage for research and development projects, including animals, to get these projects back on track as quickly as possible following a loss. We also provide specific coverage for library books, rare books and periodicals, as well as personal property of students and teachers, among the other coverages.
How coverage applies
To help you better understand how our unique education coverages will apply in the event of the loss, we’ve developed the following three brief examples.
Tuition and Fees: Because tuition is paid for the upcoming school term, schools and universities have a cyclical business income exposure that may not be appropriately covered by a traditional business income form. The education endorsement adds the Tuition and Fees wording to handle the cyclicality of income, including research grants. It amends the business interruption coverage to include the immediately following school term if the damaged property is not restored within 30 days of the start of the next school term.
Example: A major university suffers a large flood loss two weeks before the start of the school term. Because they are unable to house students, many decide to enroll in a different school, creating a loss of tuition.
Research and Development Animals and Experiments: Typically, valuable research animals and experiments are excluded on property policies. The education endorsement extends coverage to research projects by including research animals, research experiments and associated project restoration costs.
Example: A university is using lab mice to develop a cure for various rare diseases. The lab, including the mice, and all the equipment and documentation of the various projects are damaged in a small fire. The policy could pay for the loss and damage to the building and equipment. Additionally, this extension could cover the cost to replace the mice with like kind and quality along project restoration costs to get the animals back to the state that they were in prior to the loss.
Students and Teachers Relocation Expense: Universities typically house large numbers of students, and sometimes faculty. If this housing becomes uninhabitable following a loss, the university could incur costs to relocate students and teachers to new housing. The education endorsement covers the relocation of those students and teachers when living space is made uninhabitable, due to a covered loss.
Example: A dormitory suffers a large fire. The whole building is made uninhabitable while clean-up and rebuilding occurs. The proVision policy would cover the costs to pack and transport personal property of the students and store extra personal property as they await the restoration of the dorm.
New and improved
In the last edition of enVision, we highlighted some features and benefits of our new policy, the proVision 4100. The proVision 4100 endorsed with the education endorsement gives education clients the coverage they need so they can focus on educating the next generation. To learn more about what the proVision 4100 policy extends to education providers please see our Education Endorsement Brochure or contact your production underwriter.
Note: Any examples provided are hypothetical and coverage depends on policy wording.