So, you want to create a new parent group to support student activities and programs at your child’s school. One of the most common discussions at the preparation stage is about insurance for booster clubs. Is it mandatory, and if not, do you really need it? Well, booster club insurance is not enforced, but it’s highly recommended, as you’re about to see. Don’t worry, it’s more affordable and comprehensive than most new groups realize.
This blog post helps you figure out whether the coverage offered by booster club insurance carriers is a smart move. We dive into choosing the right policies for your activities, with examples of the types of protection, along with what’s not covered. Use this guide to inform decisions tailored to your new parent group’s needs.
What Is Booster Club Insurance: What Does It Cover?
Every school parent group faces potential risks, including lawsuits, accidents, and injuries. Taking out insurance for booster clubs protects against covered claims for your organization and its members. This section looks at the four main types of coverage in more detail.
1) Event Insurance for Booster Clubs (General Liability)
Event or general liability insurance is advisable, especially if you organize fundraisers, school carnivals, fun runs, etc. It’s important to acknowledge the potential for liability whenever there’s a gathering. This type of insurance safeguards your group from lawsuits arising from accidents and injuries (bodily harm) and property damage. This type of policy is available annually or as single event coverage.
Be mindful when planning your events on school property or other venues, as they won’t all carry the same liability. The level of risk varies based on the size, venue, and activities.
AIMS General Liability Exclusions
This table lists general liability high-risk exclusions for booster nonprofit organizations:
|Recreational & Hazardous
|Athletic & Sports-Related
|Risk and Safety Hazards
|Archery Bungee equipment and jumping Hot air balloons Parasailing Rocketry Scuba diving Zip lining
|Organized sports Mechanical/motorized rides Scouting
|Asbestos exposure Lead exposure Nuclear exposure Offensive weapons Workers comp claims
There may be exceptions to general liability exclusions. If in doubt, seek clarity from your booster club insurance carrier before accepting a policy.
3 Scenarios Where Event Insurance Saves the Day
#1 An attendee slips on a wet floor, breaking a leg. Your event insurance covers their medical expenses and lawsuit damages.
#2 A vendor serves contaminated food, causing an outbreak of food poisoning. The general liability policy covers medical expenses and lawsuit damages for those who got sick.
#3 A product sold at an event in good faith is defective, injuring the buyer. This type of insurance covers health care costs and lawsuit damages.
Event Insurance Coverage from Only $65 Per Year
AIM’s specific booster club insurance provides one-day and annual event insurance with the option to extend coverage. Our affordable policies exist to support your organization. They help mitigate legal action by providing coverage for bodily injury, damage to property, and product liability.
2) Embezzlement Insurance for Booster Clubs
It’s a sad fact that embezzlement goes on in America’s school boosters, and it’s often by the most unlikely suspects. That could be your president, treasurer, board member, volunteer, or even a courier. Therefore, it pays to safeguard your hard-earned funds with embezzlement or bond insurance. Whether raising money for a cause, club merchandise, or vital property, this coverage ensures your financial efforts stay secure.
You don’t have to leave your organization vulnerable to financial risks. Embezzlement coverage provides the peace of mind of knowing your funds have protection from potential misappropriation. And that leaves you to focus on your core mission without worry.
Embezzlement Protection Exclusions
A typical bond policy does not cover loss of funds considered mysterious or unexplained. Failure to follow policy conditions can potentially result in denied claims.
Embezzlement Insurance Scenarios: When Coverage Counts
#1 The club treasurer embezzled thousands of dollars from a high school booster. Bond insurance coverage reimburses the club, ensuring uninterrupted funding.
#2 A volunteer steals money directly from a club fundraiser. This coverage reimburses the organization, enabling its program funding to continue.
#3 A board member misuses a club credit card for $3,000. Embezzlement protection recompenses the club, preserving both credit rating and program funding.
3) Property (Inland Marine) Insurance for School Boosters
Your club property can be costly. Think merchandise, furniture, and hardware like cash registers, popcorn poppers, coffee machines, and snow cone makers. Protecting your valuable belongings is essential, and property insurance is your safety net. This type of insurance coverage shields your items from threats such as fire, lightning strikes, windstorms, theft, and vandalism. In addition to protecting your club’s belongings, insurance can cover property your club donates directly to the school.
Having the right coverage keeps your club’s mission and fundraising endeavors on track, even when the unexpected occurs. That leaves you to focus on your goals worry-free.
Property Coverage Exclusions
Property insurance for booster clubs has several exclusions you should be aware of. Some of those may include theft of scrip or gift certificates, marquees (once permanently grounded), computer labs, and playground equipment on school grounds. This list is not all-inclusive, so make sure you’re familiar with all limitations before agreeing on a policy.
Property Insurance Scenarios: When Coverage Counts
#1 The club’s shed gets broken into on school property. Property coverage reimburses the club for its loss by replacing the stolen items, allowing it to continue operations.
#2 A kitchen fire causes damage to the premises and equipment during a community fundraiser. Property protection steps in, covering the costs, and replacing equipment, enabling the club to reschedule the event.
#3 A powerful storm overturns a trailer storing valuable equipment. The insurer promptly reimburses the club, replacing all property damaged beyond repair.
4) Directors and Officers Liability Insurance
Directors and Officers (D&O) insurance for booster clubs is a crucial safeguard for your group’s leaders. The insurance protects them against lawsuits arising from decisions made on behalf of your organization. That could be choosing fundraisers or event locations or other administrative choices. This type of coverage defends against claims of mismanagement, misrepresentation, or inappropriate actions.
A typical D&O policy also extends to instances like:
- Wrongful use of organization funds
- Misleading statements
- General negligence
- Deviations from by-laws
Protecting your officers from lawsuits over decisions and actions is a wise choice.
D&O Policy Exclusions
There are several specific exclusions tied to Directors and Officers Liability Insurance. The primary ones are criminal acts, willful or reckless behavior, knowingly wrongful actions, and blatant dishonesty. A D&O policy may have further limitations that a representative will inform you of if they affect your application.
Directors and Officers Insurance Scenarios
#1 A club board member is sued for negligence after a student is injured at a fundraising event. The organization’s D&O insurance policy covers the member’s defense costs and any awarded damages up to the policy limit.
#2 A booster club director inadvertently states that all funds support a particular cause when they don’t. A donor or stakeholder could sue the officer for false or misleading information. D&O insurance preserves personal assets by covering legal costs and any settlements resulting from the misrepresentation claim up to the policy limit.
#3 The booster club president approved a contract without a board vote, violating the organization’s bylaws. D&O insurance covers legal costs from a lawsuit filed by a disgruntled stakeholder up to the policy limit.
The Cost of Booster Club Insurance
There are two potential costs to your club insurance: the cost of having it and the price of not. And let’s not forget the peace of mind coverage brings, which is invaluable. Remember, tailored policies are more affordable and comprehensive than many newcomers realize. Booster club insurance can start as low as $50 up to $100, depending on the carrier, type of coverage, and duration. Is the cost of NOT insuring your group worth it?
How to Apply for AIM Booster Club Insurance
AIM is a national leader, insuring over 22,000 parent-teacher and parent groups across all 50 US states. We cater to all, from small clubs just starting to well-established, larger nonprofit organizations. Whether applying for a specific policy or just wanting a quote, the process is straightforward, taking only 10 minutes of your time. First, read AIM’s insurance tips page, then click “Get a Quote” and follow the on-screen prompts. That’s it!
Point to note: It’s important to be forthcoming about your club’s finances and prepare any questions you may have for the broker.
Insurance for booster clubs is not only a wise choice but a necessary one if you want to safeguard your group and its mission. Insurance protects against potential liabilities at events and ensures the financial security of your group and its property. Tailored insurance for booster clubs not only offers comprehensive protection but also peace of mind. Lastly, try not to overlook the affordability and value these policies bring by protecting your club and its members.