The Top 10 Risks Facing Educational Institutions

In order to help our education clients and friends assess their risk management strategy for emerging exposures in the industry, we have compiled a detailed analysis of the top ten risks educational institutions are currently facing or will likely encounter in 2019. Below is a quick summary of each of the top 10 risks identified in our analysis. While this list is not all encompassing, it represents the key strategic conversations your institution should be having at every level. The full analysis can be requested by completing the form at the right of this page.

1. Fiduciary Liability

Fiduciary Liability litigation is impacting how carriers are underwriting new fiduciary business from capped limits to increased retentions.

2. 403(b) Multiple Employer Plans (MEPs)

Many private higher education state associations are considering forming 403(b) MEPs to achieve economies of scale, improve access to best in class funds and mitigate fiduciary liability risk.

3. Website Accessibility and the ADA

Many institutions have been served with lawsuits alleging their institution’s websites are not accessible to the visually impaired.

4. Traumatic Brain Injuries

Traumatic brain injuries (TBI) on an educational campus and compliance with new safety regulations remain a significant concern by liability underwriters.

5. Commercial Auto Insurance

Commercial auto insurance premiums have seen the 29th consecutive quarter of rate increases.

6. Cyber & Privacy Liability

The education industry remains an attractive target for cybercrimes such as phishing attacks, cyber extortion and social engineering schemes, as well as a hotbed for cyberbullying.

7. Active Shooter/Violent Acts

According to an FBI study, 24% of active shooter incidents from 2000 to 2013 took place within an educational environment.

8. Natural Disasters

Recent natural disasters in 2017 and 2018 have propelled loss trends towards the worst ever for catastrophic losses for the property & casualty industry.

9. Declining Tuition & Enrollments

The ongoing net tuition and enrollment issue that many institutions are experiencing is creating significant operational and financial risks.

10. Regulatory Compliance

The regulation, or “de-regulation” of higher education, in particular, continues to impact the “business” of education.

Other notable and interrelated risks you should be considering include special events, controversial speakers, minors on campus and reputational hazards. We encourage you to reach out to a trusted RCM&D advisor if your institution needs guidance in assessing and mitigating any risks on your campus.