Electronics in the Care, Custody, and Control of Students
By Mandy Doctoroff
It is only a matter of time before electronic textbooks replace traditional textbooks. These days’ backpacks from prekindergarten to high school not only tote folders, but possibly a Mac Book or personal computer. The fact is, publishing companies are producing less traditional books opting to create electronic “green” books.
May 2010, House Bill 4294 passed authorizing the Commissioner of Education to adopt a list of electronic textbooks and instructional materials. This opened a door allowing the state textbook fund to be used to purchase technological equipment necessary to support the use of electronic textbooks or instructional materials included on the list adopted under Section 31.0231 or any textbook or material approved by the State Board of Education.
Below are a few things we would like you to think about when considering purchasing a separate floater for Student Electronics Coverage:
If you have your property coverage with the TASB Risk Management Fund, student laptops are automatically covered. However, the replacement cost for a single computer can fall under the Fund’s property deductible. The approximate replacement cost for a standard student laptop is about $750 to $900; most members carry the minimum $1,000 deductible or higher.
If you have a deductible higher than the single loss, you essentially end up self-insuring. If you do not carry your Student Electronics Coverage with the Fund, check with your current carrier to verify coverage so you are not self-insuring a loss.
If you are applying for a grant or donation through technology companies, make sure to add the necessary expense of insurance into any application from the technology manufacturer.
Electronic Data Processing (EDP) equipment is slightly different coverage from regular computer coverage. Please note that if you are with the Fund, EDP equipment coverage applies only when equipment is in the care, custody, and control of a covered person. A student does not meet the definition of a covered person. In other words, if the student takes the equipment home and damages it, then the damage is excluded from EDP equipment coverage and would fall under the property coverage, meaning a higher deductible. This exclusion may be written in other carriers’ coverage documents, so please double check your coverage and ask questions.
Look at all your options: Most retailers cannot provide much more than a warranty, which seldom addresses the coverage needs for student-held laptops. Even those that can offer specified student laptop coverage can prove to be costly. The following is an example from an online insurance company that specializes in student laptop coverage:
When considering property coverage, what is your major concern: large or small losses?
If you are concerned with small or one-time losses (i.e. a computer taken home and damaged by a student), consider buying down the deductible. The Fund offers a $500 or $750 deductible for a marginal contribution. These one-time losses add up and the risk factor increases when a student has the custody of the equipment.
An example of a large loss would be the theft of 20 docked laptops over the summer. In cases such as these, the loss would be well over the $1,000 property deductible. If this type of loss is your main concern, consider the cost savings of leaving the student electronics on your property coverage and not having a separate floater with the lower deductible.
Each member has different needs to consider when choosing coverage. If you have doubts on how to handle this type of coverage, please call your TASB Risk Management Marketing Consultant or the Underwriting Staff at 800.482.7276.
