Booster clubs do so much good for the schools and students they serve. However, they’re also potential targets for lawsuits. You may wonder, does a booster club need insurance? Without proper coverage, money that should support your students and school can end up in someone else’s pocket.
Besides not knowing that booster club insurance exists, the primary reason many booster groups don’t get insurance coverage is that they don’t think they need it. This is just one common misconception many groups have about their booster club insurance needs. To protect your booster club and its service to your students, AIM can help clear the air. Below we’ll review some of the most common misconceptions about booster club insurance, so you better understand why having the proper protection is essential for the success of your organization.
Aren’t we immune from being sued as a non-profit and incorporated booster club?
Despite being non-profits, booster clubs are NOT immune from liability. While it is legally favorable to be incorporated, there are many situations where the corporate shield that being incorporated offers no help in preventing a lawsuit. Without the proper protection, your group will be paying for everything out of pocket.
Doesn’t our school’s policy protect us?
Possible, it depends on the school’s policy. Some schools cover booster club activities under their insurance policy. But, as operating costs have risen and school budgets shrunk, schools sometimes reduce their insurance policy coverage and who it covers.
Our best advice is to get in touch with your school. Give your school a list of your activities and be very specific. Don’t just ask if your carnival is covered. Instead, go into detail and list the specific rides and events, such as the moonwalk, dunk tank, face painting, pony rides, etc., and get a written letter from the school stating that all your activities are covered under the school’s policy. This detail is very important because some school policies only cover events that happen on the school campus during school hours.
We trust the members of our school and other parents not to sue us.
While you trust your officers and members, embezzlement is a big problem for booster clubs and all parent-teacher organizations. A quick Google search will show you how many examples have been found out just in the past few weeks. One can only guess how many embezzlement booster clubs are currently being embezzled and don’t know it yet.
Having insurance doesn’t mean that you don’t trust your parents and teachers; it just means that you’re being proactive to protect the funds meant for your students.
Here’s how AIM can protect your group with Booster Club Insurance
Don’t put your group at risk of a financial catastrophe. Let the professionals at AIM Insurance provide your group with an affordable, quality embezzlement insurance package specifically tailored to the needs of booster clubs like yours.
Embezzlement Booster Club Insurance
Bond coverage protects your money and covers anyone your organization trusts with its money. If someone takes that money, this coverage will replace the missing funds promptly to ensure your school and students have what they need to be successful.
Whether your group’s funds are subject to embezzlement, robbery, or theft, it’s a serious crime. To process an embezzlement claim with AIM, you must notify the authorities in your area and furnish a completed police report naming the individual you suspect embezzled the funds with your claim.
The police report is often the most challenging part of any embezzlement claim for booster clubs, as the individual suspected of the crime is probably someone very close to you and other members of your booster club. There are many reasons someone can be tempted to embezzle money. We’re not here to pass judgment, only to help your group protect its money with the correct booster club insurance.
AIM offers three standard coverage amounts: $10,000, $25,000, and $50,000. These are the standard amounts offered, but we offer customized policy limits up to $250,000. Each coverage limit comes with a $250 deductible for claims filed under this policy.
Please note: The Bond policy is not a blanket policy. It does not cover funds that mysteriously disappear or unexplained loss of funds. Additionally, if the conditions of the bond policy are not followed, then your claim has the potential of being denied.
Event Liability Booster Club Insurance
General Liability: AIM Insurance offers one annual event insurance coverage for your booster club and the option for single, one-day event coverage.
A general liability policy protects you and your organization from lawsuits should someone be injured at one of your organization’s activities and holds you responsible. This policy includes attendees, volunteers, and even your booster club members. And coverage includes event setup and teardown. Social Media liability is also available to supplement our general liability policies.A Medical Payments limit of $5,000 is included in every AIM general liability policy. Options for increased medical payments limit are $10,000, $25,000, and $50,000, with zero deductible.
Custom general liability policies with higher limits, such as $1,000,000 or $2,000,000, are also available, Contact Us.
Director & Officer Liability Booster Club Insurance
Your booster club is an organization. That means just like any organization, you or any member can be held liable for decisions you make individually and as an organization. Examples include: what type of fundraiser you decide to host, the location you choose to hold an event, and any other managerial decision.
You and the officers of your organization can also be sued for mismanagement, misrepresentations, dissemination of false or misleading information, or inappropriate actions. In the event you or an officer of your group is sued, AIM’s D&O coverage will pay to defend you.
This coverage is also sometimes referred to as Professional Liability insurance. The coverage limit is $1,000,000 with a $0 deductible and will protect your organization against legal action for:
- Inappropriate use of organization funds
- Wrongful acts, misleading statements, or negligent acts
- Not following your by-laws
Please note: There are certain exclusions within your Directors and Officers Liability policy. It does not cover:
- Criminal acts
- Any knowingly wrongful act
- Willful or reckless behavior
Property Booster Club Insurance
Inland Marine (Business Personal Property) coverage is booster club insurance that protects your raffle merchandise, auction items, and fundraising supplies while these items are in your possession. This coverage also protects your organization’s personal property, such as popcorn machines, snow cone makers, school store supplies, emergency relief supplies, and more.
The Inland Marine coverage limits are $10,000, $25,000, and $50,000, with a $250 deductible. This booster club insurance policy covers your group’s property, supplies, and items against fire, natural disaster, theft, and damage both while the items are in use and while they’re in storage.
The Inland Marine coverage has some exclusions and provides no coverage against:
- Wear and tear
- Dishonest or criminal acts by a booster club member
- Property damaged prior to your policy start date
- Damage resulting from improper operation
- Lost items
This policy also does not cover some specific types of booster club items
- Gift certificates
- Items gifted to your school are covered by its insurance, for example
- Donated computer labs
- Playground equipment
A note on the importance of gifting: Booster clubs use the money they raise to purchase items to give to the school. To decrease your booster club’s liability, AIM recommends your group not purchase any merchandise or items directly. A better choice is for your parent-teacher group to gift the money to the school and allow the school to purchase whatever your booster club wishes to donate.
When you donate an item with a gift letter, the receiving party accepts responsibility for those items and creates a level of separation between your group and liability. A gift letter is not a policy requirement, but it is a good idea for anything your group donates to the school as it lowers your liability.
Please remember that gifting or trusting items to a school will provide some defense in court, but it cannot preempt someone from filing a lawsuit.
AIM is ready to provide your booster club insurance
AIM is the national leader and the largest writer of PTA’s, PTO’s, and booster clubs, currently insuring more than 22,000 groups across all 50 states. With 30 years of experience, we provide well-tailored insurance solutions and educational resources to help our parent-teacher groups avoid risk upfront so they can focus on making a meaningful difference in their communities.
There are so many reasons why your booster club needs insurance to protect its money, members, and property. Having this protection in place is essential to putting your booster club in a position where it can act with confidence and provide the best education and extracurricular experiences for your students. AIM Insurance provides all the insurance that your booster club needs. To see if your organization qualifies, visit our site.
Have another question? Want to know something specific about our coverage? You can reach us at 1-800-876-4044.
Looking for More Booster Club Resources?
AIM has plenty of resources to help your organization succeed. Check out this blog for tips and guidance:
Duties of a PTA, Booster Club, or PTO Treasurer: Being a booster club treasurer is a serious office. That said, it doesn’t have to be an unnerving experience. We’ve put together some information on how you can learn not just to be a treasurer but a great one.
Diversity, Equity, Inclusion: How to Make Your Booster Club a Welcome Place for Every Parent: As our communities become more diverse, we need to make sure that booster clubs are an open and welcoming place for all parents. We’ve provided some ideas to keep your group up to date.
Revitalize your PTA, PTO, or Booster Club Membership: To support your group and help you stay strong, AIM has some valuable tips that you can use to revitalize your booster club’s membership.