Figuring out what insurance policy is best is no walk in the park. Insurance exists to help protect people and their assets, but even with such good intentions, there are some companies out there who don’t take the time to really understand what you need.
If you purchase a policy that covers your assets, for example, but never purchased one that covers embezzlement, you may be out a lot of money if embezzlement ends up happening to your organization and you weren’t covered.
Knowing what coverage you need for your organization doesn’t need to be confusing.
Here are 5 simple things to look out for when purchasing insurance for your nonprofit:
1. Your school’s policy probably covers less than you think.
Make a list of all the events you are planning this year and take it to the Risk Manager in your district to see what you do and don’t have coverage for.
As far as assets go, most school insurance policies will not cover items that your PTA has stored in a closet or a room on campus. Most policies only cover property that the school can inventory and depreciate at tax time.
It’s best to know all the aspects that your school doesn’t cover so you have a better idea of what needs to be protected.
2. You might be wrong about how much personal property you have.
In general, the majority of parent organizations don’t think they have a whole lot of personal property (property in your possession). But this is untrue.
Your personal property can include things that many PTA, PTO, and Boosters may own, such as popcorn machines, barbecue grills, cash registers, etc. At the same time, personal property can include raffle prizes, merchandise, auction items, and fundraising merchandise while it is in your possession.
If you have any of these items throughout the year, make sure you have a property policy to protect it against robbery, theft, or natural disaster.
3. Cover it all.
Your PTA, PTO or Booster Club is just as vulnerable as a commercial business when it comes to being held liable. Make sure that your insurance company can cover you for all of the risks you are exposed to General Liability, Bonding, Property Coverage, Officers Liability, and Accident Medical insurance.
When purchasing a liability policy, for example, make sure it will cover ALL of your activities such as bounce houses, dunking tanks, skating parties, fun runs, silent auctions, and other events you have planned.
Many PTA, PTO and Booster Clubs buy an insurance policy without actually knowing what’s covered. Do your homework and find an insurance company that knows your events and how to protect you.
4. Don’t give your money away.
There are many types of bond policies available to you. Make sure that you have a blanket bond that covers any and everyone that you trust with the money, not just the President or Treasurer. If someone other than those listed embezzles money, your PTA will not be covered and your money will be lost.
Another way money can be spent unnecessarily is if you pay to have Additional Insured’s or Certificate Holders added to your policy. You do not need to pay for this, as it can be done without a fee. When choosing an insurance company, make sure you ask them about this since you might be required to do add others to your policy several times throughout the school year.
5. Make sure you get a full year’s worth of coverage.
You work too hard all year to pay more money than what you are getting coverage for. When searching for your insurance company, make sure that you get a full 12-months worth of coverage for your insurance payment.
The purpose of insurance is to protect. And when it comes to kids and organizations that exist to nurture the growth of these kids, it becomes even more important to have the right insurance policy. If you are able to check off these five things about your PTO, PTA or Booster Club insurance, you can feel at ease knowing your organization and those in it are in good hands.