Library Insurance: Instant Online Quotes from $11/Month

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Not all people have the budget to buy books and other printed materials from a bookshop. This is why libraries exist where people can rent books, which might be a more economical option.

Your library, similar to a museum, has liability if something bad happens to visitors. For example, a reader might sit on a defective chair and splat on the floor. Someone might pay to use your library as an auction house. And in case this auction event is uninsured, then expect the participants to come after you if a stampede or any other accident happens.

Purchase library insurance. You can use this to cover lawsuits and grant compensation if third parties successfully hold you liable for accidents. This can even recover the value of books and antiques in your library’s custody.

Types Of Library Insurance 

All institutions and organizations are responsible for having in place adequate insurance coverage from a reputable underwriter. Online resources like this discussion are available to provide an extra layer of expert knowledge, particularly with complex insurance considerations. 

For library institutions operating as a for-profit or non-profit, we recommend the following types of library insurance policies:

• Commercial property insurance

• General liability insurance

• Commercial auto insurance 

• Workers compensation insurance

• Professional liability insurance

• Directors and officers insurance (D&O)

General Liability Insurance For Libraries & Librarians

Commercial general liability insurance is the most common inclusion in the bundled insurance for libraries and librarians. Your library needs this because it can face responsibility in case guests, readers, visitors, independent contractors, and other third parties sustain injuries or property damage within the premises. 

Use the table above to compare the general liability insurance of companies we recommend. 

General liability insurance works differently depending on the business that needs it. In the case of libraries, this insurance is useful in the following situations:

• A guest falls from a height while searching for books at the top of a tall shelf 

• A visitor sustains injuries after stepping on the wet floor of your library

• An earthquake happened. A shelf fell and injured several guests

• A phone was damaged while it was being charged in your library’s electrical outlet 

It should be noted that, in some cases, individual riders are required. These coverages are available as optional or automatic add-ons to the basic general liability policy of library and librarian insurance programs:

• Hired/non-owned auto liability coverage

• Waiver of subrogation

• Rented premises liability coverage

• Products and completed operations coverage 

It is also important to note that, in cases where the library wants to work as an independent contractor of projects, some clients will require proof of general liability insurance. They might also request to be named as additional insureds in your library’s general liability policy.

Professional Liability Insurance For Libraries And Librarians

Your library might not only store books but also take custody of rare books, documents, and other materials from museums, bookstores, notable figures, and others. Moreover, your library might enter into contracts with charities, trustees, and other entities. 

Professional liability insurance is also important when running a library. This provides coverage if an employee or your library, as a business entity, is held liable for committing:

• Negligence 

• Violation of good faith

• Violation of fair dealing

• Inaccurate advice

• Breach of contract

• Breach of confidentiality 

Use the table above to compare the professional liability insurance of companies we recommend. 

Commercial Property Insurance For Libraries

Commercial property insurance is important for any business or organization that maintains a physical location. Use the table above to compare the commercial property insurance of companies we recommend. 

Buy this type of public library insurance and you’re sure to get reimbursement for losses in case your library’s building gets damaged or destroyed. Commercial property insurance can be categorized as:

• Replacement cost (identical replacement in case of loss/damage)

• Historical cost (compensation based on original cost to acquire property)

• Functional replacement cost (cost to acquire an alternative property which will perform the same function)

Covering the building is just the first job of commercial property insurance. As for its second job, commercial property insurance can recover financial losses if valuables inside the library get damaged or lost. Common items covered are:

• Books

• Valuable papers and records

• Memorabilias

• Manuscripts

• Maps

• Cassettes, CDs, films, and other similar media

• Computers

• Furniture and appliances

It’s very important to insure the items of your library with commercial property insurance. It’s estimated that libraries in the USA experience a 4%-8% overall loss rate when books and other properties get lost or damaged due to theft, inventory errors, and carelessness of the user. 

Business Owner’s Policy For Libraries 

Purchasing a business owner’s policy allows you to hit two birds with one stone. This type of public library insurance bundles general liability and commercial property insurance into a single policy that’s cheaper and easier to manage. 

In the table above, you can take a look at the features of the business owner’s policy of the companies we recommend.

In other words, there’s no need to get a commercial property and general liability insurance separately as there’s a business owner’s policy that allows you to get both in one single purchase. 

Depending on which insurance company you work with, a business owner’s policy might also offer professional liability, cyber liability, workers compensation, and other insurance solutions as optional add-ons. 

Tools And Equipment Insurance For Libraries

A library can’t run well without audio-visual equipment, archival equipment, restoration equipment, circulation equipment, and other types of implements. You can insure all of the equipment owned by your library with tools and equipment insurance. 

Usually offered as an optional add-on to commercial property or general liability insurance, tools and equipment insurance takes care of expenses if audio-visual equipment, archival equipment, and other implements get damaged, lost, or destroyed because of:

• Fire

• Theft

• Vandalism

• Malicious mischief

• Water damage 

• Impact 

• Operator error

You must know that while it's available as a stand-alone policy, most insurance companies that provide coverage online sell tools and equipment insurance as an add-on to the general liability, business owner’s policy, or commercial property insurance for libraries. 

Commercial Auto Insurance For Libraries

If the library owns and operates any vehicles, they must be covered with adequate insurance to protect the library against a claim, as well as to provide adequate protection for employees or trustees operating the vehicles.

Commercial auto insurance covers cars, trucks, commercial vans, bookmobiles and any other vehicle owned by the library. It is also possible to obtain automobile coverage for personal vehicles used by staff for library business, although these vehicles must also be adequately insured by their owners. 

Directors And Officers (D&O) Insurance For Libraries

Essential to any organization with a board of directors, officers, governors and/or trustees, a separate directors and officers (D&O) insurance policy must be purchased. Before consenting to act as a trustee, director, or officer of a company, individuals will often ask to see a copy of the D&O insurance policy, to be sure the coverage is adequate should there be a lawsuit filed at a later date.

Directors’ and officers’ insurance policies include the legal costs of individual trustees should they need to defend themselves against a claim. D&O insurance for libraries provides indemnification for governing individuals and puts them at greater ease when considering whether to give their time towards the library’s operational and management oversight.

In some jurisdictions, D&O coverage is required by law in order to protect those who serve their community in public service roles on a voluntary or cost-reimbursement basis. It is important for an organization to understand the regulatory requirements for their library’s operations according to regional laws.

Libraries may choose to publish a request for quotations in order to ensure their collection and assets are adequately insured. By using the policy categories and considerations outlined in this article, libraries can smooth the process and ensure that all areas of substantial risk are appropriately mitigated. 

Workers Compensation Insurance For Libraries

A library can’t operate well without employees. It’s possible to run things on your own. However, operations won’t be smooth. 

You need workers' compensation insurance as soon as your library is employing one or more people. This insurance assumes your responsibility of providing benefits in case an employee sustains a work-related injury or disease. Here are some example situations where workers' compensation insurance helps:

• An employee falls from a height while sorting the books of your library

• An employee gets involved in a vehicular accident while traveling to get stocks or to attend an event

• An employee develops a disease because of work-related conditions 

So what costs are covered? You can use workers' compensation insurance to cover these expenses:

• Emergency medical care

• Hospitalization

• Medication

• Rehabilitation and retraining

• Lost wages

• Death benefits 

Library Insurance Cost

The average library insurance cost is $30 per month or $360 per year for a $1 million general liability insurance. This assumes that your library has 5 employees and generates $500,000 or less per year.

There are many individual considerations when obtaining a quotation for library insurance from a qualified underwriter. The list of quantifiable information required includes, but isn’t limited to:

• Size of the library’s physical collection

• Value of donated items, artwork and rare collections

• Number of physical locations

• Age of buildings

• Number of employees

• Number of patrons who make use of the library’s public facilities

For a more solid understanding of the cost of library insurance, take a look at this table that shows how much the best companies charge for their $1 million general liability insurance for libraries: