Insurance Canopy report details rising legal risks and growing demand for educator liability coverage

Insurance Canopy has highlighted the increasing legal risks faced by educators, emphasizing the necessity for robust liability insurance. The company compared current lawsuit trends with coverage options available from unions and non-union associations in a report released on October 28, 2024.

According to the report, lawsuits against teachers are on the rise, leading school districts to allocate more resources towards legal defenses. In Maryland's Montgomery County Public Schools, legal spending increased by 548% in 2024, indicative of a broader trend of escalating litigation within the education sector. This increase includes cases involving alleged negligence, defamation, and wrongful disciplinary actions, which add financial and reputational pressures on educators. As these lawsuits become more frequent and costly, both schools and teachers face heightened pressure to secure adequate liability protection to safeguard their careers and financial stability.

Teachers' unions such as the National Education Association (NEA) provide liability insurance through programs like the Educators Employment Liability (EEL) Program. The EEL Program offers up to $3 million in civil liability coverage for educators facing lawsuits related to their professional duties. However, according to the NEA, coverage for civil rights claims is capped at $300,000, potentially leaving educators financially vulnerable in certain legal disputes.

In contrast, the Texas Classroom Teachers Association (TCTA) provides its members with up to $8 million in professional liability coverage—significantly higher than many union-provided plans. This includes $2 million specifically allocated for civil rights claims, offering additional legal protection for educators. According to TCTA, their coverage presents a more extensive financial safeguard against lawsuits and legal disputes compared to union-backed insurance policies.

Teacher Freedom reports that union dues can range from $300 to over $1,200 annually. Non-union professional associations often offer liability insurance and legal support at lower costs while providing comparable or enhanced coverage. These more affordable options are appealing to educators seeking personalized protection without political affiliations.

According to its website, Insurance Canopy offers customized liability insurance solutions tailored for small businesses, self-employed professionals, and educators. The company provides both ready-to-buy policies and personalized coverage plans through an in-house team of certified agents. To date, Insurance Canopy has insured over 135,000 businesses.