GS §115C F (c) (1) The board of directors of a charter school may sue and be sued. The State Board of Education shall adopt rules to establish reasonable amounts and types of liability insurance that the board of directors shall be required by the charter to obtain. The board of directors shall obtain at least the amount of and types of insurance required by these rules to be included in the charter. Any sovereign immunity of the charter school, of the organization that operates the charter school, or its members, officers, or directors, or of the employees of the charter school or the organization that operates the charter school, is waived to the extent of indemnification by insurance.

SBOE Policy Manual Charter Schools Administration Each charter school shall obtain the following types and amounts of insurance $1,000,000 General Liability $1,000,000 Errors and Omissions $1,000,000 Automobile Liability Workers’ Compensation - Statutory Coverage Property Coverage – Owned Fiduciary Coverage - Bond

General Liability $1,000,000 Limit of Liability Bodily Injury and Property Damage Fire Legal Liability (Damage to Premises Rented to You) Medical Payments Personal and Advertising Injury Products and Completed Operations NC State Board of Education shall be named as an Additional Insured

Errors and Omissions $1,000,000 Limit of Liability Educators’ Legal Liability Directors’ and Officers’ Legal Liability Failure to Educate Expulsion of Students

Automobile Liability $1,000,000 Limit of Liability Bodily Injury and Property Damage Hired and Non Owned Coverage Auto Physical Damage –Comprehensive Coverage –Collision Coverage

Workers’ Compensation Statutory Coverage Medical Indemnity

Property Insurance Building Contents Boilers and Machinery (Equipment Breakdown) Inland Marine

Employee Theft Forgery or Alteration Fiduciary Coverage Faithful Performance Finance Officer $50,000 NC GS 115C-442(a) Commercial Crime Coverage

Additional Coverage Considerations

Employee Benefits Liability (EBL) Covers charter schools for claims alleging negligent acts, errors, omissions in the administration of benefits –Group Life Insurance –Group Accident/Health Insurance –Profit Sharing –Stock Options –Workers’ Compensation/Unemloyment Benefits –Social Security Benefits –Disability Benefits

Employment Practices Liability Insurance (EPLI) Covers charter school for claims alleging legal rights violations –Sexual Harassment –Discrimination –Wrongful Termination –Breach of Employment Contract –Negligent Evaluation –Wrongful Discipline –Deprivation of Career Opportunities –Wrongful Infliction of Emotional Distress

Excess Professional Liability $1,000,000 Limit of Liability $ 2,500 Attorney Reimbursement (Employment Related) All Employees This coverage is provided through legislative appropriation

Risk Management How much can you RISK?

Definition of Named Insured School Employees Teachers Volunteers Board of Directors Student Interns PTAs and Booster Clubs

Do You Know What is Covered? Charter School Operations Defense Cost Negligent Acts, Errors, Omissions Claims Made or Occurrence Coverage Sexual Misconduct Deductibles Monetary and Non Monetary Damages Third Parties

Loss Control Train Employees Written Policy & Procedures –Employees –Board of Directors –Third Parties Safe Working Environment Written Disciplinary Procedures –Employees –Students

Your Obligation to State Board of Education Submit to DPI on an annual basis –Certificate of Insurance (COI) –Proof of Additional Insured Status

Proof of Insurance Vendors Contractors Service Providers

Waivers Signed by Parent or Guardian

THANK YOU Eileen Townsend, CPCU, AU Section Chief - Insurance