Accidents can happen anywhere, including in school. A student slips on slippery stairs, a visitor to an educational exhibition is electrocuted while turning on a projector, or a parent is injured in the parking lot. All of these can result in legal action against the school.
This is where public liability insurance plays a crucial role. This insurance product provides financial protection against claims from third parties who suffer losses or injuries resulting from school activities, facilities, or negligence.
Unfortunately, many educational institutions in Indonesia still consider public liability insurance as an addition, not a requirement. However, abroad, this protection is a mandatory standard for all educational institutions, from kindergartens to universities.
In this article, we will thoroughly discuss why every school, university, or course institution needs to have public liability insurance, and why it should be purchased through a professional insurance broker such as L&G Insurance Broker, rather than an agent or directly from an insurance company.
Contact us for a FREE consultation via:
HOTLINE L&G 24 JAM: 08118507773 (PHONE – WHATSAPP – SMS)
Website: lngrisk.co.id
Email: halo@lngrisk.co.id
Why Schools Need Public Liability Insurance
The school environment is a dynamic, busy place filled with activity, involving many people every day. While schools are responsible for providing the best possible education, they also bear legal responsibility for the safety of everyone within the school grounds, including students, teachers, visitors, and suppliers.
Try to imagine the following scenarios:
- A student fell on the field because the floor was wet without any warning signs.
- A parent slipped on the stairs while attending a school committee meeting.
- An education exhibition guest was injured when he collided with a collapsed exhibition stand.
- Someone got food poisoning from the school canteen.
Any of these incidents could result in lawsuits against the school for negligence in ensuring safety. Without insurance coverage, compensation and legal costs could reach hundreds of millions of rupiah and even damage the institution’s reputation.
This is the reason why public liability insurance is not just financial protection, but also reputation protection.
What Is Public Liability Insurance and How Does It Work?
Simply, public liability insurance protects the insured party (in this case the school or educational institution) from claims filed by third parties, for example students, guests or contractors due to bodily injury or property damage that occurs in the school area or due to school activities.
Simple example:
If a student is injured because a school fence collapses and the parents demand compensation, public liability insurance will cover legal costs, compensation costs, and medical expenses according to the policy limits.
Without this insurance, all these costs must be borne by the school.
And if the case goes viral on social media? The school’s reputation could be permanently damaged.
Risks in the School Environment That Are Often Ignored
Schools often feel “safe” because they assume their activities are low-risk. In fact, risks actually come from small, often overlooked factors:
- Accidents on the Field or Stairs
- Students who fall, get injured, or break bones can be the school’s responsibility.
- Fire or Electrical Short Circuit
- Damage to third party equipment such as projectors, laptops, or guest cars.
- School Events (Open House, Graduation, etc.)
- Visitors were injured due to the collapsed decoration structure.
- Extracurricular Activities
- Field trips, industrial visits, or sports activities.
- Food and Canteen
- Cases of food poisoning or contamination from school facilities.
These risks not only cause financial losses, but can also shake public confidence.
Once a school is deemed negligent, parents can lose trust and choose to transfer their child elsewhere.
The Real Benefits of Public Liability Insurance for Schools
The following are the real benefits of this insurance that are often felt by educational institutions abroad and are starting to be realized in Indonesia:
- Protection from Lawsuits
This insurance covers legal costs, compensation, and all costs related to third-party claims resulting from injury or property damage.
- Maintaining the School’s Reputation
Schools that have insurance demonstrate professionalism and a commitment to the safety of all participants. This increases the trust of parents and external partners.
- Calmness in Every Activity
From graduation ceremonies to sports competitions, schools don’t need to worry about legal risks because they are protected.
- Cooperation and Accreditation Requirements
Some international business partners, sponsors, or educational institutions are now starting to require proof of public liability insurance before collaborating.
- Protecting Teachers and Staff
Teachers, administrative staff, and even cleaning staff are also included in the protection if an incident occurs involving them in school operational activities.
Why Go Through an Insurance Broker, Instead of an Agent or Directly to the Insurance Company?
Now, this is the most important point that many educational institutions often misunderstand. Many schools purchase policies directly from insurance companies or through agents. It seems faster, but it’s actually very risky.
Here are the reasons why insurance brokers like L&G Insurance Broker are far superior:
- Brokers Side with You, Not Insurance
Agents work for insurance companies. Brokers work for you.
This means that the broker’s job is to find the best policy to suit the school’s needs, not just to sell the product.
- Comprehensive Risk Analysis
L&G will conduct a risk assessment of the school facilities to determine the best type, limits, and clauses to ensure there are no loopholes when making a claim.
- Assistance During Claims
This is the biggest advantage. In the event of an incident, the broker will step in to help prepare the documents, coordinate with the surveyor, and ensure the claim is paid in full.
Agents can’t do this. Even if you buy directly from an insurance company, you’ll have to handle the complicated claims process yourself.
- Transparency and Equal Price
Premiums won’t be higher through a broker. Instead, brokers can help negotiate more competitive premiums with broader coverage.
Real Case: When Schools Have No Public Liability
Several years ago, a private school in Jakarta faced a lawsuit from a student’s parents after their child fell down the school stairs and broke his leg.
Because it does not have public liability insurance, the school must cover:
- Cost of treatment at the hospital
- Compensation to parents
- Legal and mediation fees
- Reputation impact (viral news and decrease in number of applicants)
The total loss reached more than IDR 300 million.
If the school has public liability insurance, all costs will be covered by the insurance company, and L&G as a broker will help ensure the claim is paid without any problems.
Modern Schools Must Be Professional, Including in Risk Management
In the modern era, schools are not just places of learning, but also institutions that must be managed professionally, just like companies. Safety and security are no longer secondary concerns.
Schools with public liability insurance are considered more prepared, more responsible, and more trusted by the public. This is especially true if the institution frequently hosts public events such as competitions, seminars, open houses, or social events involving large numbers of people.
Why Choose L&G Insurance Broker?
L&G Insurance Broker is one of the best insurance brokers in Indonesia with more than 30 years of experience in handling commercial, construction, and public liability insurance.
The L&G team has a thorough understanding of the risks faced by the education sector, from elementary school to university. We go beyond simply selling policies; we assist clients through the entire process, from risk analysis and policy selection to claims disbursement.
- Full support from the beginning until the claim is disbursed
- Team of licensed and experienced experts
- Direct access to various leading insurance companies
- Free risk consultation without any fees
Cover
School is not only a place of learning, but also a space of great social responsibility.
Every small incident can have a big impact on public trust. By having public liability insurance, schools not only protect students and guests, but also maintain the reputation and sustainability of their institutions.
And remember, only a professional insurance broker like L&G can help you from risk analysis to claim disbursement without any hassle.
So don’t buy a policy directly or through an agent because in the real world, the only one who really helps you when making a claim is a broker.
If you are the administrator of a school, foundation, campus, or modern educational institution, don’t wait until an incident occurs to realize the importance of legal protection.
Contact us now for a FREE consultation:
📞 WhatsApp: 08118507773
📧 Email: halo@lngrisk.co.id
L&G Insurance Broker is ready to help you understand your school’s risk needs and prepare the best public liability insurance solutions to ensure your institution’s reputation and finances remain secure.
