May 13, 2018
Tutoring companies face the not uncommon risk of lawsuits and insurance claims - a good reason why every smart tutoring company (and many tutors) should know why it’s important to know what you can insure – and why.
Like any business, tutoring companies have to be attuned to risks common to their line of work, especially when offering a professional service.
Buying insurance reduces or prevents the worst from happening if anything does happen, from a client or third party suffering a bodily injury to a legal claim for professional negligence or misconduct. All of these risks should be taken seriously, in light of the time and cost any business can lose to dealing with such claims.
So, what insurance do tutoring companies need? There are four types of insurance policies to look into:
Work-related claims include for professional negligence, or malpractice: where a tutor fails to provide a duty of care owed to a student. (It’s important to know that professional negligence isn’t just when a tutor fails to do something, like achieve a desired outcome for a student.)
But still, claims, legitimate or not, are expensive – and professional liability insurance covers both. Whether it’s for professional negligence or any number of work-related claims, professional liability insurance ensures that tutoring companies are adequately protected when any claim arises.
What’s more, professional liability insurance will generally cover all legal expenses related to a claim, including lawyers’ fees, court costs, and any settlement or judgment.
Some professional educators may have access to insurance policies through their school district or the NEA. But that insurance doesn’t apply outside of their professional responsibilities within their job. If that educator is also a tutor outside their school district, the insurance won’t cover any claims related to their tutoring.
If your tutoring company rents or owns a commercial space, it’s critical (and, depending on your state and landlord, required) that you obtain general liability insurance. You’re covered when, say, a client or stranger slips on your property. Medical and legal costs are generally paid for as well.
Some insurance companies also offer a business owner policy, which combines professional and general liability policies in one package suitable for small businesses.
Workers compensation is basically a no-fault insurance fund for claims made by your employees for job-related injuries and illnesses.
Investigate early on what insurance is right (or required) for your tutoring business. That will save you the trouble and potential ramifications you or your business might face later.
In the end, the decision comes down to weighing the possible risks against the relative costs and benefits of each type of insurance. For most tutoring companies, the benefits of buying adequate insurance may be well worth the costs.