Your Parent-Teacher group should run like a business. You have a budget to work within, deadlines to meet, and events to plan.
The main concern in any business is finances. You may have many different officers with check-signing capabilities or trust one of your volunteers to deposit fundraising money.
Although there may be various safeguards set up to protect your funds, there is still a large risk of someone embezzling your money. The Bond (or Commercial Crime) policy is set up to protect your money, scrip, securities, and other cash equivalents against embezzlement, robbery, and theft.
With the Bond coverage, your funds are covered from embezzlement by anyone that you entrust with your Organization’s money.
Some of the people your Organization might trust with your funds include:
There are two types of bonds: Position Bonds (single person) and Blanket Bonds (Organization). Position Bonds usually cover only one person or one position within your Organization.
While this option may seem less expensive than a Blanket Bond, it only protects your Organization if that particular person embezzles the money. For example, if your Organization only bonds the Treasurer, you will find yourself in a difficult position if the President is the guilty party.
The policy that AIM offers is a Blanket Bond. Under a Blanket Bond, it is not necessary to name everyone covered by the bond or the position they hold within your Organization.
For Bond coverage to apply to your Organization, you must comply with the following requirements:
Coverage may be voided if the above requirements and conditions are not followed.
Safeguarding Your Funds
While the Bond policy is available to protect your funds should they become embezzled or stolen, it is much easier to avoid the situation altogether. With the right safety practices, you can keep your hard-earned funds safe and avoid a disaster altogether.
The Bond policy does not cover funds which disappear by mysterious or unexplained loss. Additionally, if the conditions of the bond policy are not followed, then your claim has the potential of being denied.
AIM offers three standard coverage amounts:
These are the standard amounts offered, but we offer limits up to $250,000. Please call AIM for pricing.
Police Reports Are Required
Whether you are talking about embezzlement, robbery or theft, these are all very serious illegal crimes. To process a claim, you must notify the authorities in your area and furnish us with a police report naming the individual you suspect embezzled the funds.
This may be the hardest part of any embezzlement claim, as the individual whom you suspect of the crime is probably someone very close to you and other members of the board.
There is a $250 deductible for a claim filed under this policy.
Download our Group Insurance Buyers Guide
- Descriptions of coverage
- 10 things you should know
Perfect for reviewing at your next meeting!
For additional details, download our complete insurance guide.