Liability insurance

[northSaver]

Do any small business owners here have liability insurance and, if so, is there a company you can recommend? Also, do we even need it?

We're sole proprietors of an English school and we're a bit worried about an accident happening in the school or outside in the car park, then getting asked to pay huge compensation. There's probably not much chance we would be asked or sued, but you never know. The car park especially is worrying because some parents let their children run around after the lesson and sadly it may only be a matter of time before something happens. However, in this case wouldn't the driver's car insurance cover it?

We had a policy when we first started about 20 years ago but it was a bit pricey and we stopped it a few years ago without ever claiming. Just wondering if we need to restart it.

[RetireJapan]

We have juku hoken. It covers students on the way to and from the school, any accidents they might have on the premises, damage they cause etc.

We've made a few small claims on it and they were all paid promptly. Coverage is not particularly generous, but it is nice to hand parents off to the insurance company.

The policy is very cheap (a couple of hundred yen per student per year) and we include it in our annual fee.

(you might also consider including a section in your contract about how you can't take responsibility for students once they leave the school, with their parents or otherwise)

[Tsumitate Wrestler]

Just a fun reminder for individuals that bicycle insurance (which is mandatory in most prefectures {150-300 yen a month}) is actually personally liability insurance and covers more than just cycle accidents.

[goodandbadjapan]

We have juku hoken and I think it is based on how many students we have. Have never had to make a claim, thankfully, but think it is worth having.

[captainspoke]

Just a fun reminder for individuals that bicycle insurance (which is mandatory in most prefectures {150-300 yen a month}) is actually personally liability insurance and covers more than just cycle accidents.

Just renewed mine a few weeks ago--plan E, ¥4290/yr.

[northSaver]

Thank you for all the replies. I will look into it some more. I guess the fact it's cheap means that claims are fairly rare. But just in case...

[Tsumitate Wrestler]

Thank you for all the replies. I will look into it some more. I guess the fact it's cheap means that claims are fairly rare. But just in case...

With insurance that often means that the threshold to claim benefits is high.

[RetireJapan]

Thank you for all the replies. I will look into it some more. I guess the fact it's cheap means that claims are fairly rare. But just in case...

With insurance that often means that the threshold to claim benefits is high.

Not my experience with juku hoken (it is easy to claim). But cover is not particularly generous, and claims are fairly rare at least in our case.

[northSaver]

Been looking into this, and so far none of the policies I've found cover being hit by a car. This is the main thing I'm worried about! What else might happen I wonder?

Injury due to fire: unlikely because we're on the ground floor and there are several doors and large windows to escape through.
Getting hit by falling objects or glass in a huge earthquake: earthquakes and other acts of God aren't covered.
Falling off a chair: possible, but not happened yet.
Fighting: possible, but not happened yet.
Slipping on ice in the carpark, path or porch: this happens sometimes, but no serious injuries yet.
Getting stung by a bee in the garden and suffering a huge allergic reaction: possible but unlikely.
Heart attack due to a Halloween scare or something: possible but unlikely.
Heatstroke: unlikely now that we have aircon.
...

I wonder if Ben or anyone else can remember what they claimed for in the past. Something on this list or something I haven't thought about?

We have about 100 students and I'm still wondering if the cost (20,000 yen?) justifies the risk. Also, student numbers vary and it would be a nightmare if we weren't allowed to claim because the student numbers at the time of accident were one more than what we signed up for. Do they require proof of numbers I wonder? Or expect you to tell them every time there's a change?

Sorry for all the questions and thanks again.

[RetireJapan]

I wonder if Ben or anyone else can remember what they claimed for in the past. Something on this list or something I haven't thought about?

We have about 100 students and I'm still wondering if the cost (20,000 yen?) justifies the risk. Also, student numbers vary and it would be a nightmare if we weren't allowed to claim because the student numbers at the time of accident were one more than what we signed up for. Do they require proof of numbers I wonder? Or expect you to tell them every time there's a change?

Sorry for all the questions and thanks again.

We've claimed for (not a complete list as I am largely not involved with talking to parents or dealing with the insurance company): minor injuries to students at the school (falling off a chair, bumping into something), damage caused by students to school property, and students getting hurt on the way to school.

We've had two serious car accidents involving students on the way to school or going home. Neither were covered by our insurance but in Japan a driver hitting a pedestrian (especially a child) is always going to be at fault and their insurance should cover everything. Luckily both children survived and made full recoveries.

My understanding is that premiums are determined and paid at the start of the year and minor changes in student numbers after that (up or down) don't matter.