For Laptops and Tablets, Do You Even Need Insurance? as They Put More Devices in the Hands of Younger Students, Districts Are Calculating Whether the Peace of Mind That Comes with Insurance Is Worth the Cost
Greg Thompson · T.H.E. Journal Technological Horizons in Education · 2013
At best, insurance is a crucial investment that leads peace of mind after large educational technology expenditures. something goes wrong, the insurer pays the claim. At worst, insurance premiums siphon money from school coffers while lining the pockets of distant company executives. Faced with the inherent risk of purchasing and maintaining more than 500 Apple iPads, John Connolly carefully pondered these scenarios. For the director of technology at Consolidated High School District 230 in Orland Park, IL, the question of to or not insure hinged on whether students would be allowed take the devices home. For District 230, the answer was no--at least for now. Armed with that crucial piece of information, Connolly decided decline the AppleCare Protection Plan and eschew any extra insurance. It ended up being a fantastic decision, he says. If you're planning on buying tablets and keeping them in-house, insurance is not worth Self-Insurance Responsible for the technology needs of 9,000 students spanning three high schools, Connolly was able save the district money thanks a relatively low percentage of damaged units. He says that the iPad ended up being a really durable device, and Connolly used the money that would have gone toward AppleCare or insurance purchase additional devices in case of damage. [ILLUSTRATION OMITTED] This type of serf-insurance requires an affirmative plan set aside funds that would have been used for insurance and use them instead repair or replace devices as needed. It's an appealing scenario, but not without risk. If end up having $20,000 in the pot, and halfway through the year you've already gone through it, what do do with the second half of the year? muses Connolly. So there is higher risk with that approach. Officials at nearby districts have opted purchase insurance essentially avoid all risk. Connolly understands the sentiment, but can't help but cringe at the thought. Insurance companies would not be in business if there was a loss, he says. collect more money than they need, end at the end of the day, they are going keep When Connolly's district inevitably goes 1-to-1, he believes things will change. While he says that you need insurance if kids are taking devices home, Connolly is exploring a option that may serve as a compromise between self-insurance end real insurance. hybrid approach involves an outside company managing claims and making sure equipment gets replaced within a certain time. If all the money from premiums is not spent at the end of the year, it gets rolled into the next year, so it stays with the district, explains Connolly. The outside company's concept is work with multiple districts, and if they can get enough districts on board, then the cost for them ends up being small across the board. They take a small set fee manage it. From a district standpoint, it's not a big financial hit. idea of paying a traditional insurance company that keeps the inevitable surplus does not sit well with me. Like Connolly, officials at Poudre School District (PSD) in Fort Collins, CO, decided not purchase insurance. Students at all six high schools in the district have 1-to-1 laptops that cost about $700 each, end parents pay a one-time $50 fee that helps cover repair and replacements for all four years that a student uses a computer. For districts pondering a similar fee aimed at parents, Donald Begin, director of information technology for PSD, cautions that officials should be extremely clear about what the fee covers. At PSD, the $50 does not go toward an insurance premium, but instead toward a self-insurance fund that covers repairs and replacements. According Begin, PSD's school board has mandated self-insurance for all devices with a value of less then $5,000. …