Mark Pullen is a third-grade 1:1 classroom teacher in East Grand Rapids, Michigan, and is writing on behalf of the Worth Ave. Group, which provides laptop, table computer and iPad insurance to schools and universities.
As technology becomes ever more powerful and more prevalent, many districts are purchasing large numbers of tech devices for students. Whether the district provides a school or district-wide 1:1 laptop program, individual classrooms piloting the use of iPads, or any other technology initiative involving devices like netbooks, e-readers, iPods, or tablets, one thing is clear: many school districts have made (or are in the process of making) a serious budgetary investment in technology.
Protecting that investment is essential, and as such, it falls to the district’s school board to have some frank discussions regarding the computer investments themselves as well as how to protect that investment.
The board should be prepared to discuss what its expectations are for higher deductibles vs. higher payouts, the level of service that is desired and whether students will be expected to help foot the bill … especially when there is loss or breakage.
Different school districts have different devices and areas of risk, so the same insurance option is not best for everyone. But the commonality is the questions that should be asked around the board table. Once these questions have been asked and answered, then administrators or staff can seek the best fit in insurance carriers that match the board’s expectations.
For districts looking to insure all student and teacher devices, a group insurance policy is ideal. Here are four key questions to consider before bids are let for insurance carriers:
1. How willing is the board to sustain additional costs down the line through insurance deductibles, or does the board want to incur a slightly higher payment and not need to worry about funding deductibles if and when a loss occurs?
Districts vary in how much risk they are willing to assume in terms of insuring tech devices. For some districts, getting all stakeholders to support a major technology investment (such as a large laptop purchase for a 1:1 program) comes most easily when unexpected costs are kept to a bare minimum.
In that case, a group insurance plan with no deductible (or a very low deductible) is recommended. Although such a plan will cost more, that cost will be known ahead of time and can be budgeted into the rollout plan with exact certainty, providing reassurance to concerned taxpayers, parents and community members alike.
Other districts are willing to assume more risk in paying a higher deductible when needed; some even set aside a small percentage of their overall technology budget for just such a purpose. In a district like that, a higher deductible plan might be a great fit.
2. What level of service does the board want for the district if a claim must be made?
The answer may seem obvious: the district likely wants an insurance company that will replace or pay for a broken or stolen item quickly (and, in the case of replacement, with an identical replacement item to what the student had previously). Unfortunately, you can’t always assume that this will be the case.
Before purchasing a group insurance policy, discuss the board’s expectations for service before the superintendent or staff asks questions like these of a potential insurance provider:
• What is the average turnaround time on claims?
• In the case of loss or damage, will the insurance company send out an identical replacement item, a “similar” replacement item, or a cash settlement?
• Are peripheral items like batteries and power cords covered as well?
• Are student devices protected both on and off school grounds?
• How time-consuming is the claims process?
Answers to these questions may help when staff sifts through insurance options to find the one that will meet the board’s expectations. Selecting the best insurance plan for the district requires more than just deciding on a deductible and hoping for the best. Be certain that staff ask the right questions and dig deeply to ensure that the chosen company will provide the level of service and claims support the board expects when it is needed.
3. What are the risks inherent in our technology program?
For an elementary iPad program, the biggest risk area might be accidental student misuse of the machines. For a middle school take-home 1:1 laptop program, the biggest risk area might be the time in transit when students are bringing the machine to and from school.
The district’s assortment of tech devices will help determine the greatest areas of risk and whether those risks can be minimized. Should the district be especially concerned about theft? Machine failure? Vandalism? Fire or natural disasters?
Once the district’s key concerns and risk areas are identified, the proposed group plan should insure against those specific problems. If the district is embarking on a new technology rollout, the number of anticipated claims will be an unknown. In that case, the superintendent might want to check with other districts that have similar technology programs in place to get an estimate of their claims.
4. Do we expect this to be entirely a district expense or will some costs be passed along to students?
For districts not looking to insure all teacher and student devices themselves, it often makes sense to provide an individual insurance option for students and their families, as well as for staff members.
In this case, staff would want to identify companies that not only do everything described above (such as covering the most likely areas of risk and providing excellent claims service when needed), but also find an insurance provider that makes the individual sign-up process quick and easy.
A simple, brief application form that the district can send out to all families is typically ideal.
Whatever the district’s specific needs, take the time to ask the important board-level questions up front and then have staff find the best way to protect what will be a significant investment in district technology.