Some homeowner policies will cover theft of the iPad when the device is in their home. Check with your insurance carrier for more information. You may be required to list the item on your policy.
Parents may also purchase third-party insurance at their expense to cover the iPad. Be sure the policy covers loss due to theft, vandalism, fire, water, and accidental damage. Insurance typically does not cover the cost to replace iPad cases and charging blocks/cables.
The Bedford High School Parents Association has additional information about a popular insurance option from Worth Ave Group.