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Insurance for Education Technology

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Overview

Education technology, or otherwise known as edtech, is the innovative union between technology — computer hardware, software, and processes — meant to promote and support education. From district leaders to parents, from universities to employers, edtech companies benefit many individuals.

Although edtech companies have been on the rise for several years, the recent pandemic has catapulted them to the front lines. Without the ability to hold regular classroom sessions, edtech companies have been the go-to resource for educators and learners around the globe.

Because of this distinct shift, the edtech industry has an exceptionally positive forecast. Even in such high demand, though, it doesn’t mean all risks have disappeared. Edtech companies still face many of the same challenges that other companies do. The slow rise to fame has helped them to tackle vulnerabilities in stride, making this market even more secure than expected.

 

Data Breach Costs

$4

m

The average total cost of a data breach in 2020 was $3.86 million and the average cost per individual record that was lost was $150 (IBM).

Copyright Infringement Lawsuits

3

k

Over 3,000 copyright infringement lawsuits are filed each year. While California, New York, and Illinois experienced the highest number of cases, the entire US faces this unique threat.

Why is Insurance for Education Technology Organizations Important?

Now more than ever before, edtech has loads of responsibility on its shoulders. Although most edtech companies have been itching to implement their products full force, the climate hasn’t been entirely receptive. However, the COVID-19 pandemic made edtech learning invaluable. So, the tables are turning.

That said, now isn’t the time for edtech companies to misstep or falter in their business operations. Parents, teachers, students, etc. are all depending on these resources. Edtech companies can’t be distracted by legal disputes, failed product performance, or data breaches.

The world needs edtech companies, and edtech companies must deliver. For that reason, insurance plans designed for edtech companies exist. With the right policies, edtech companies can continue to benefit people worldwide in ways that we never imagined before.

cyber insurance

Cybersecurity

Over $4 million is the average price tag of a data breach. Without some sort of financial safety net, this massive hit often shutters companies within a matter of months. When it comes to edtech companies, data privacy is a top concern. Unfortunately, cybercriminals are only becoming more sophisticated, executing multi-tiered attacks on the most unsuspecting victims. Edtech companies are a prime target, and a cyber attack can shut down an entire school district in one fell swoop.

product performance

Product Performance Issues

Not only is cybersecurity a significant concern, but also performance issues. Both young and old learners demand a lot from programs, apps, and websites. As a result, edtech companies must offer resilient products to handle all the demands of learners. If a product fails or doesn’t perform as expected, it could disrupt a student’s learning experience, a classroom session, or an entire university’s educational program. Keep in mind that one of the main reasons why edtech startups fail — despite the global value of edtech being $252 billion — is that many are unable to keep up with the fast-paced digital shifts in the tech industry.

Funding

Technology integration is necessary for edtech to thrive. However, barely over 20% of schools are highly integrated. Furthermore, schools don’t always have adequate funding to implement new edtech programs. Navigating this climate can be tricky, and settling for less than a product is worth isn’t an option for edtech companies. Naturally, securing funding in this situation requires financial savvy.

social

Social Response

According to a recent Gallup survey, “More teachers (64%), principals (73%) and administrators (66%) than students (42%) themselves say students would like to use digital learning tools more often to learn.” That said, some teachers and parents still aren’t on board with the idea of education technology. Sometimes it can be challenging to convince skeptics that edtech is genuinely beneficial to students and others.

EdTech Insurance Frequently Asked Questions

The cost of insurance for EdTech companies will depend on several things, including the company’s size and the company’s stage of development. Other factors include:

  • Exposures: risks being insured.
  • Company practices: views on safety, compliance, and risk management.
  • Program structure: the amount of deductible and willingness for a company to assume more risk
  • Number of users on the platform
  • Claims history: the type and amount of past claims against the company

Types of TechEd Companies that need insurance

  • Digital libraries
  • Online marketplaces
  • Data analytics
  • Curriculum technologies
  • E-learning for adults
  • Online colleges or universities
  • Group fundraising sites
  • Learning management systems
  • Online tutoring
  • Textbook rentals
  • Language learning apps or platforms
  • Academic search engines
  • Communication platforms
  • Homework platforms

How it works

Finding insurance coverage doesn’t have to be painful. We aim to make the purchasing experience as streamlined & intuitive as possible.

1
Get a quote

Use our custom built online portal to get quotes fast. We automate clerical tasks that plague the traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.

1
Get a quote

Use our custom built online portal to get quotes fast. We automate clerical tasks that plague the traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.

2
Pair with a specialist

No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.

2
Pair with a specialist

No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.

3
Stay one step ahead

To do better, you need to know better. With changing political, technological, legal and economic landscapes, staying ahead of the curve is critical.

Our in-house team is tapped into the latest developments of your industry, proactively ensuring you’re covered.

3
Stay one step ahead

To do better, you need to know better. With changing political, technological, legal and economic landscapes, staying ahead of the curve is critical.

Our in-house team is tapped into the latest developments of your industry, proactively ensuring you’re covered.

Jonathan Selby General Manager
Jonathan Selby, General Manager

Meet your specialist

Jonathan spent the first 5 years of his professional insurance career working as a generalist broker at a traditional firm on Long Island.  Intrigued by the notion of how technology can be leveraged in the industry, Jonathan joined the Founder Shield team in early 2016 as an Account Executive, and quickly grew into his current leadership role of General Manager.  He works to oversee client strategy and communication, and has fostered a culture of providing unparalleled service and risk consulting for some of the fastest growing companies in the world.

Outside of work, Jonathan can be found on the basketball court and chess board (…but not at the same time.)

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