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Aipedia: Schools, academies and governors
RPA Section 5 and commercial D&O usually treat claims from AI-related governance decisions like any other claim, because neither the RPA rules nor typical wordings single out AI. The exclusions, especially for fines and reckless breaches, decide most outcomes.
Part of: AI in schools, academies and governors
In short
For academy trusts, RPA Section 5 covers governors, including members, trustees and local governors, up to £10,000,000 any one loss and Membership Year, with nil retention, on a claims-made basis. The September 2026 rules do not mention AI. Exclusions include dishonesty, personal injury, criminal fines and regulatory penalties, and acts known to be a breach of duty or done in reckless disregard. Section 6 adds unlimited PI. Independent school trustees rely on commercial D&O or trustee indemnity, limited by Charities Act 2011 s.189. Top-up or commercial cover may be needed where RPA does not reach.
Governors and trustees rarely use AI tools themselves. Claims reach them because they approve policies, oversee safeguarding, filtering and cyber security, sign off contracts, and decide complaints and exclusion reviews. If an AI-related failure causes harm, the question becomes whether the board put reasonable arrangements in place and responded properly. That is a governance allegation, which is what governors' liability and D&O are designed for.
The RPA membership rules for academy trusts, September 2026 apply for the Membership Year 1 September to 31 August:
| Term | Position | AI relevance |
|---|---|---|
| Who is covered | "Governor" includes trust members, trustees or directors and local governing body members | Covers local governors who approve AI use at school level |
| Limit | £10,000,000 any one loss and any one Membership Year; nil retention | One limit for all claims in a year |
| Trigger | Claims-made; claim notified in the Membership Year | Notify early when an AI incident may lead to a claim |
| Mechanism | Indemnifies the member for losses from indemnifying an Indemnified Person | The trust is reimbursed for indemnifying governors |
| Fines and penalties | Criminal fines and regulatory penalties excluded | ICO penalties over AI data use not covered |
| Conduct | Dishonest acts and acts known to be a breach, or in reckless disregard, excluded | Ignoring warnings about AI risks may be argued as reckless |
| Injury | Personal injury and property damage excluded | Harm to pupils is usually handled under liability or abuse cover |
| Legal costs | Costs incurred without the administrator's prior written acceptance excluded | Agree representation before acting |
Other exclusions include personal profit, prior or pending litigation, malicious falsehood, pension trustee acts and defence costs where convicted. Section 6 provides unlimited professional indemnity with a £1,000 retention, and Section 14 provides cyber cover of £250,000 per member per year. No reference to artificial intelligence was found in the rules reviewed. Separate rules exist for church academies, local authority maintained schools and voluntary aided or foundation schools.
Independent schools are outside the RPA and buy commercial D&O or trustee indemnity. Where the school is a charity, Charities Act 2011 s.189 allows trustees to buy insurance with charity funds but forbids it from covering criminal fines or regulatory penalties, defence costs where a trustee is convicted of an offence involving fraud, dishonesty or wilful or reckless misconduct, and liability for conduct the trustee knew, or must reasonably be taken to have known, was not in the charity's interests. These limits mirror the RPA exclusions closely. See trustee indemnity insurance for charities and trustee indemnity and AI decisions.
No DfE, RPA or insurer statement specific to AI and governor liability was found, so the decision rests on ordinary gaps. Trusts commonly review commercial options where they want cover the RPA does not provide, such as wider cyber or crime cover, or where their arrangement falls under different rules. Independent schools need a full commercial programme. Commercial D&O wordings vary on regulatory investigation costs, notification and claims-made terms, so the detail matters; see RPA versus commercial insurance, claims-made explained and whether fines are insurable.
Related: school AI policies and the AI in schools hub.
Apex arranges D&O for academy trusts and schools and trustee cover for independent schools. A broker can set your RPA position or current D&O wording against the AI scenarios your board is most likely to face.
No mention of artificial intelligence was found in the September 2026 RPA rules for academy trusts. AI-related claims against governors are therefore considered under the ordinary Section 5 terms, including its exclusions and claims-made trigger.
Yes. The RPA definition of "Governor" includes trust members, trustees or directors, and local governing body members, so local governors who approve AI use at school level fall within it.
No, in most cases. RPA Section 5 excludes criminal fines and regulatory penalties, and Charities Act 2011 s.189 prevents charity trustee insurance from covering regulatory penalties. Defence and response costs may be treated differently, depending on the wording.
Not necessarily. Section 5 gives £10,000,000 with nil retention. Trusts sometimes consider commercial cover for gaps, such as cyber limits or crime, and a broker can compare the RPA rules against commercial wordings.
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