Thursday 13 October 2011

More/higher insurance costs for new academies

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The following Freedom of Information request was put to several schools:

  • I am doing some research into the costs of the academy programme and should be grateful if you could let me know the annual costs of insurance before and after conversion to academy status.
One schools has replied:

Pre-academy @£20k
Post Academy £63k
Another states:
“our costs for insurance are expected to increase considerably after conversion: 2010/11 cost via LA £20,145 (excluding staff absence and maternity insurance). We anticipate as an academy the cost will be around £84,000. The reason for this is that our LA substantially under-insured the buildings (this was a planned decision as they self-insured a large percentage by agreement) so our buildings insurance was subsidised by the LA, also there are economies of scale in insuring a whole county of schools.
We are using the same insurer, Zurich as the LA I don’t know of another in the market for school insurance. At the moment the YPLA will refund insurance costs but I don’t know whether this position will last.”
and another:
Our Insurance costs pre-academy were:-  £8,305
£2,828 (Buildings/Fire)
£2,382 (Combined Liability)
£2,895 (Damage,Loss, Risk Pooling)
£200 (Hirers Liability)
Using the same insurance company, but obviously not through the LA, our insurance cost now are:- £25,103.49
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