Universities are complex ecosystems. They house not only classrooms and offices but also laboratories, libraries, dormitories, athletic facilities, and cultural centers. These institutions are custodians of valuable physical assets, cutting-edge research equipment, historical archives, and critical infrastructure. Managing and insuring a university’s broad and diverse property portfolio is no small feat.
Property risks in universities are multifaceted. Fire, water damage, theft, vandalism, and natural disasters all pose significant threats. Add to that the unique risks associated with laboratories handling chemicals, art galleries displaying priceless works, or data centers managing critical information systems, and the picture becomes even more complicated. That’s why universities must take a proactive approach to risk management, including robust insurance strategies and collaboration with property risk engineers.
Safeguarding assets and infrastructure
One of the primary hazards universities face is fire and explosion. Many campuses feature historic buildings with outdated wiring alongside modern structures that have high electrical demands. The presence of laboratories, kitchens, and workshops increases the likelihood of fire incidents, which can rapidly escalate and cause extensive damage.
Although explosions are less common, they can occur in research settings involving flammable chemicals or pressurized equipment, leading to catastrophic consequences. The incident at Towson University in 2025, where a fire caused significant damage to a campus building, underscores the importance of vigilant fire prevention measures.
Water damage also presents a persistent threat, especially given the aging infrastructure prevalent on many campuses. Frozen pipes, leaking roofs, and sprinkler malfunctions can lead to severe water-related losses, damaging expensive equipment, compromising structural integrity, and fostering mold growth. These incidents not only result in costly repairs but can also disrupt academic and research activities for extended periods, impacting the institution’s mission.
An effective insurance program should be customized to reflect the institution’s specific property portfolio and hazards.
Natural disaster threats
Natural disasters pose another significant risk, with the specific threats, of course, varying based on geographic location. Universities situated in hurricane-prone regions face the threat of destructive storms. As a result of Hurricane Helene’s path through western North Carolina, Appalachian State University, Western Carolina University, and UNC- Asheville incurred upwards of $14 million in damage to equipment and building, along with campus cleanups.
Those in seismic zones must contend with earthquakes; and campuses near wildland-urban interfaces are vulnerable to wildfires. Flooding, whether from heavy rainfall or storm surges, can devastate infrastructure and halt operations, sometimes for months. The wildfire in Malibu in 2025, which led to campus evacuations and closures, exemplifies the need for greater disaster preparedness and resilient infrastructure.
Vandalism and theft are also prevalent concerns, particularly given the open nature of many campuses and the high value of portable equipment like laptops, lab tools, and art pieces. High foot traffic, coupled with the presence of valuable assets, makes universities attractive targets for criminal activity. The rise of cyber-physical theft, where physical assets are targeted or compromised through cyber means, adds another layer of complexity to security planning.
Construction and renovation activities introduce additional risks, including structural failures, fire hazards from welding or hot work, and exposure to weather-related damages. Ongoing development projects are vital for campus growth but require meticulous planning and safety protocols to mitigate associated hazards.
Universities often house specialty assets such as museums, rare book collections, and art galleries. These assets require specialized climate control, security measures, and insurance coverage to protect against risks like deterioration, theft, or damage from environmental factors.
Insuring campus assets and operations
Insurance is a vital part of a university’s risk management strategy, offering financial protection against property damage, revenue loss, and business interruptions. An effective insurance program should be customized to reflect the institution’s specific property portfolio and hazards. While standard policies typically cover fire, storms, theft, and water damage, exclusions and coverage limits must be carefully reviewed to ensure comprehensive protection. Certain assets—such as research equipment, data recovery, art collections, and buildings under construction—often require specialized policies or endorsements.
Beyond traditional property coverage, universities should also consider business interruption insurance. This provides a safety net against revenue loss and additional costs during operational disruptions, which is especially critical for campuses relying on housing or hosting major events that generate revenue.
In working with universities, AXA XL offers tailored solutions, often providing 100% property coverage for many institutions. Our team collaborates closely with university risk management and facilities teams to develop comprehensive, customized programs that address their unique needs. We leverage our deep industry expertise and global resources to help universities strengthen their resilience, implement proactive risk mitigation strategies, and navigate the complexities of the current insurance landscape.
The insurance landscape in 2025 remains challenging for universities. While some regions and types of coverage have seen premiums decreases, many universities are still experiencing rate increases, reflecting the ongoing volatility in the market. This environment underscores the need for proactive risk management and strategic insurance planning.
Insurers are scrutinizing risk management practices more rigorously; universities that demonstrate strong safety measures and proactive maintenance are better positioned to negotiate favorable terms. AXA XL works with universities to not only provide comprehensive coverage but also to implement risk prevention strategies that help contain costs and enhance resilience.
The crucial role of loss prevention
Given these challenges, strategic investment in loss prevention has become more critical. Demonstrable efforts to enhance infrastructure and safety measures can help universities secure more favorable insurance terms and reduce premiums, ensuring better protection against an increasingly volatile risk environment.
Property risk engineers play a pivotal role in this regard, conducting detailed assessments of campus facilities and operations to identify vulnerabilities before incidents occur. Their evaluations extend beyond simple checklists, incorporating technical expertise and risk analysis to recommend practical mitigation measures. These professionals examine building systems, electrical and mechanical vulnerabilities, hazardous material handling, and building envelope integrity. Their recommendations often include upgrading fire suppression systems, replacing outdated electrical panels, improving drainage and roofing, and enhancing physical security through surveillance and access controls.
The collaboration between universities and risk engineers can influence underwriting decisions and insurance premiums, rewarding institutions that demonstrate proactive risk management. For example, implementing fire safety upgrades or disaster-resistant construction practices can lead to reduced premiums and broader coverage options. Risk engineers also assist in developing emergency response plans and training programs, fostering a culture of safety among faculty, staff, and students.
New technologies are also playing a crucial role in enhancing loss prevention efforts. Advanced sensors, IoT devices, and real-time monitoring systems help universities detect potential issues early -such as water leaks or fire hazards -allowing for swift intervention and reducing the risk of damage. Additionally, data analytics and predictive modeling enable institutions to identify vulnerabilities and implement targeted safety measures before incidents occur.
Building a culture of prevention
Building a culture of prevention is fundamental to long-term property risk management. Universities must embed safety consciousness into their operational ethos, encouraging shared responsibility among all campus stakeholders. Regular training, emergency drills, and awareness campaigns help ensure that everyone understands how to prevent incidents and respond effectively when they occur. Integrating risk assessments into planning processes for new buildings and renovations further enhances resilience.
Universities that invest in resilience—such as upgrading fire suppression systems, reinforcing structures against natural hazards, and improving emergency preparedness—are better equipped to navigate the increasingly complex insurance landscape.
Ultimately, effective property risk management in universities extends beyond safeguarding physical assets. It is integral to preserving the institution’s core mission of education, research, and societal contribution. By leveraging specialized expertise, fostering a culture of prevention, and maintaining strategic insurance programs, universities can mitigate their exposure to property risks and ensure their resilience in an evolving threat landscape.
