Chapter 3.6: Insurance

3.6.1 Risk management scheme

The Risk Management Scheme offered through the Ministry of Education is a contents and liability insurance that covers most losses of property in the event of break in, vandalism or fire, as well as a range of legal liabilities. 

It is important to keep a record of what is being insured.  For example, as well as a fixed asset register, some schools make a video/DVD recording of the contents of each classroom. 

Premiums for the Risk Management Scheme are deducted before schools receive their operational grants. All state schools are automatically included in the scheme. Ministry approval is required to opt out of the scheme.

3.6.2 Workers accident insurance

From 1 July 2000 Accident Compensation Corporation (ACC) became the sole provider of accident insurance for all employers. All claims for work-related injuries occurring on, or after, 1 July 2000 must be lodged with ACC.

On behalf of state and state-integrated schools the ministry has entered into ACC's WorkPlace Cover programme.  Further detail is provided in the Funding, Staffing and Allowances Handbook. Schools are invoiced by ACC each August for their Residual Claims Levy and Workplace Cover premiums.

3.6.3 Contract works insurance

Contract works insurance covers property that is in the course of construction for Ministry of Education contracts or jointly funded contracts with the board of trustees.  The cover is on the basis of accidental damage, including vandalism, theft and earthquake to the contract works and is not extended to board of trustee property or contractors’ plant and equipment.

Boards of trustees will need to arrange 100% cover for work to board of trustees owned assets or work that will create a board owned asset.

Other potential areas of insurance

Schools are covered for most types of insurance.  However, additional areas of insurance that should be considered are:

• overseas travel insurance – if staff travel abroad on school business
• motor vehicles – the Risk Management Scheme covers vicarious liability for motor vehicles within the public liability section, but if a school owns motor vehicles, then it should consider obtaining comprehensive insurance for these
• overseas students – overseas students should obtain their own health and travel insurance.