A guide to insurance and risk management for Australian schools
- QBE has a long history of providing protection for independent Australian schools against unforeseen events like extreme weather events, accident, theft or legal claims.
- Regular maintenance activities like clearing gutters, checking fire protection systems, and cleaning grease filters in kitchens, are crucial in helping prevent costly damage.
- QBE provides tailored risk management solutions, including site visits to help schools identify potential hazards, refine insurance premiums, and minimise disruptions.
All schools across Australia face unique risks that can disrupt operations and compromise the safety of students, staff, and visitors. From extreme weather events to everyday operational hazards, the need for robust insurance coverage and proactive risk management has never been more crucial.
For those in charge of protecting these vital assets, it is imperative to understand what the critical risks faced by schools are, what insurance coverage is available to protect against these risks, and further, what the practical steps are for enhancing safety and resilience. QBE’s Safeguarding Australian Schools Report details these factors and more.
Related article: Education report overview
The most common risks for schools
Schools operate in dynamic environments where a variety of risks can emerge, often with significant financial and operational consequences. Understanding and mitigating these risks is crucial for maintaining a safe and secure learning environment.
One of the most significant risks for schools is property damage caused by natural disasters such as storms, floods, and fires. From 2014 through 2023, QBE customers received over $100 million in property claims, with storms accounting for 57% of these claims.
Stephen Geisler, Head of Corporate, Financial Lines and Multinational, QBE Australia Pacific, explains that regular maintenance is key to preventing and minimising property damage.
“Many of these claims could potentially have been avoided with routine preventative maintenance, especially over the long summer school holidays,” said Geisler.
The importance of routine maintenance
Preventative maintenance is one of the most effective ways to reduce the risk of costly incidents at schools. Yet, anecdotal evidence from QBE’s Risk Management Practice suggests that many schools often delay or overlook regular maintenance tasks. This oversight can lead to preventable issues, particularly in the face of extreme weather events, which have increasingly impacted schools across Australia.
Key preventative maintenance activities
Through extensive site visits, QBE’s risk management team identified several common pitfalls that can increase a school's vulnerability to incidents. Addressing these issues is critical for maintaining a safe and secure environment.
- Hot work controls: Many schools do not have a formalised hot work permit system, increasing the risk during hot work activity. Implementing these permits can significantly enhance safety.
- Fire detection systems: Upgrading fire detection systems is vital, particularly in schools with valuable or irreplaceable assets like chapels or historic buildings.
- Dust control in woodwork rooms: Adjusting cleaning practices to manage wood dust can help prevent dust explosions, which are a significant risk in woodwork rooms.
- Fire system impairment management: Schools should implement clear systems for labelling out of service fire systems during renovations or repairs.
- Chemical handling in science labs: Proper chemical storage and handling practices are crucial for preventing fires and ensuring the safety of students and staff.
- Management of overhanging trees: Overhanging trees should be professionally assessed and managed to prevent property damage and safety hazards.
- Flood mitigation measures: Schools in flood-prone areas must have robust flood mitigation strategies, including structural repairs and evacuation plans.
- Handling of combustible panels: Identifying and managing combustible panels (like expanded polystyrene and aluminium composite) is essential to reducing fire risks.
- Contractor management: Ensuring that contractors are properly authorised and follow safety protocols is key to minimising liability risks.
- Maintenance of school kitchens: Regular cleaning of grease filters, ducts, and kitchen equipment is necessary to prevent fires and ensure a safe cooking environment.
Ashwin Abraham, Manager of Client Risk Management, QBE Australia, explains that a proper preventive maintenance program can ensure operational disruptions are kept to a minimum.
“Implementing a proactive, scheduled maintenance strategy is crucial for schools to mitigate the risk of storm-related damage. By addressing potential vulnerabilities ahead of time, schools can reduce the likelihood of costly repairs and operational downtime,” said Abraham.
Enhancing school safety
In 2023, QBE commenced site visits of some insured schools to conduct risk assessments, enabling accurate policy pricing and fair premium settings for both the insurer and the insured. These inspections provide schools with valuable insights into how they can enhance safety and reduce potential risks.
Key focus areas of these inspections include:
- Construction, Occupancy, Protection, and Exposures (COPE): QBE risk engineers examine these aspects during property site visits to assess and mitigate risks effectively.
- Liability Assessments: These assessments focus on slip, trip, and fall risks, contractor management, food safety, general cleaning, and the management of recreational areas.
These thorough evaluations allow QBE to offer informed risk mitigation advice, helping schools prevent future losses and maintain a safer environment, and ensuring they pay an appropriate amount while maintaining comprehensive coverage.
“We’re here to assist schools with risk management so they can concentrate on their primary responsibilities — educating and inspiring the next generation of Australians,” said Bob Algie, Head of Industry Verticals, QBE Australia Pacific.
Our education claims and risk management teams work alongside our brokers and underwriters to provide our customers with peace of mind.
The QBE difference
Managing risk effectively is crucial for maintaining a safe and secure learning environment in our schools. QBE’s Risk Management Practice offers schools the tools and expertise needed to identify potential hazards and implement proactive measures to minimise disruptions, reduce financial loss, and avoid reputational damage.
- Customer solutions panel: QBE vets solution providers in technical risk mitigation, such as thermographic scanning, fire protection design and maintenance. Although QBE does not have commercial arrangements with these suppliers, they are vetted to ensure they meet and exceed regulatory and compliance standards in their jurisdictions.
- ‘Makesafe’ initiative: Designed to expedite the recovery process for schools experiencing property loss, this initiative minimises downtime and ensures schools can return to normal operations quickly and safely.
- High-risk activities: QBE develops frameworks to identify high-risk activities involving contractors and third parties, such as rugby, rock climbing, abseiling, and exchange student programs. These frameworks ensure that contractors and third-party providers have the required protocols and insurance coverage to manage these activities effectively.
Routine maintenance and proactive risk management are essential for safeguarding schools against the diverse risks they face. By choosing QBE, schools can ensure they are protected against both everyday incidents and catastrophic events.
Essential insurance coverage for schools
Schools in Australia must hold various types of insurance policies to ensure staff, students, and visitors are protected against potential risks and liabilities. While specific requirements differ by state, QBE provides the necessary coverage, including mandated and recommended policies for property insurance, public liability insurance, workers compensation, professional indemnity insurance, and motor fleet insurance.
Safeguarding Australian schools: Download the QBE Education sector report
For more in-depth insights on the impact and value of insurance for Australian schools, read our QBE education sector report.
Download the report Explore QBE’s Resilience Series
This article contains insights from QBE’s Safeguarding Australian Schools report. For more detailed information and references, please refer to the full report.
