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My former institution didn't consider checking a company's insurance package to be their responsibility.  Our students were treated as adults.  They found their own internship positions and in many cases, completed internships with companies where they were already employed part time.

In essence, internships were treated as part time jobs with an additional learning requirement.  The college provided oversight, in terms of ensuring that students met the learning requirements and companies honored the obligation to assist in setting learning objectives, provide learning opportunities, and evaluate performance, but the college never checked on whether or not companies provided certain levels of insurance.  

Since college students are adults and companies who employ students as part time workers aren't required to provide information to the college about insurance, it's not clear why internship employment would be treated any differently than any other part time job, except of course in the learning aspect.