Embezzlement Insurance for PTA, Protect Your Funds

Embezzlement is our #1 claim here at AIM, and in economic uncertainty, embezzlement claims become even more prevalent. AIM wants to remind all PTAs that your funds may be more exposed than you know. Today, we’re discussing embezzlement insurance for PTAs.

When families are going through stressful times, perhaps some have had their hours severely cut, while others have lost their jobs entirely, worry and strain can quickly build up. With frustrations such as these, people may be tempted to borrow funds from your PTA.

What is Embezzlement Insurance for PTA Groups?

Honesty is the best policy. Our embezzlement insurance for PTA groups covers you when people are not. Embezzlement insurance is coverage that protects your PTA funds by replacing your money if it is embezzled or stolen.

AIM never wants your PTA scrambling, frantically asking, “what will we do now?” We are here to ensure that your group has peace of mind and can confidently continue to make a difference in your school without missing a beat.

How Can We Protect Our PTA From Embezzlement?

The first question you may have is, “how can we protect our PTA from embezzlement?” There are many guidelines and practices your PTA can follow to help avoid embezzlement from ever occurring. Here are AIM’s Top 10 Ways to Protect Your Organization Against Embezzlement,

Never take money belonging to the Organization home.
Deposit money into the bank daily, even if a project is ongoing.
Two people should always count the money and sign the receipt verifying the amount.
Two signatures should be required on all checks.
Never sign a blank check or a check made out to “cash.”
All bills should be paid by check, never cash.
AVOID debit or credit card use.
Conduct an annual audit/financial review of the books.
Have a non-signer physically receive, review and sign the bank statements monthly.
Purchase a Bond Policy (embezzlement insurance) and follow the requirements.

Remember, your PTA is similar to a business, and your members should take the necessary precautions to treat it as such. Being organized with paperwork, putting in place needed oversights, and reviewing your records will help your group function safely and smoothly.

What Are Some Examples of PTA insurance Claims?

It is difficult to imagine that anyone would steal from an organization as selfless as a PTA. Unfortunately, it is more common than you may think. Often times, the perpetrator isn’t trying to hurt your group. Instead, they are likely going through a difficult situation.

More often than not, when someone steals your group’s funding, it is because they are feeling extreme monetary distress. Perhaps they lost their job, hours were cut back, or are being faced with the pressures of providing for their families. When this occurs, they may convince themselves that they will only borrow a small amount. Perhaps to cover one bill, then another, then other. Soon the amount has added up to thousands of dollars.

One PTO in Virginia trusted their PTO treasurer, Victoria Joyce Carter, to handle their funds. This money was meant to support their elementary school and help create future events. Unfortunately, this treasurer had been using their accounts for personal expenses. An investigation found that Victoria had been embezzling money for almost a year, the total adding up to over $12,000.

A similar case occurred in Connecticut. School officials noticed something was off in their accounts. Police soon found out that the elementary school’s PTO treasurer, Monica Bevilacqua, had been writing checks to herself. She was able to steal nearly $13,000. If it weren’t for the school officials paying attention, who knows how much the PTO could have lost.

These are only two cases amongst hundreds. The truth is embezzlement happens to Parent Teacher Groups all the time, and unless your PTA protects itself, an event like this could set your group back on months of hard work. PTA insurance for embezzlement protects you from the devastation Parent Teacher Groups like these and countless others have gone through.

How Do You Move Forward if Your PTA is the Victim of Embezzlement?

In the unfortunate event that your PTA is the victim of embezzlement, you and your group may feel a bit lost at first. The person that stole from your PTA was likely someone you trusted: a parent, teacher, or good volunteer, possibly leaving your members feeling betrayed. Moral and trust may be a setback, so how can your PTA move forward?

File a claim: Firstly, if your PTA has embezzlement insurance, quickly file a claim. Not only does having PTA insurance minimizes the financial heartache your PTA is going through, but it also helps speed up the overall recovery process.

Communication: Start rebuilding your PTA’s moral by opening up the dialogue. Allowing people to express their frustrations, instead of letting them fester can do a lot for healing.

Rebuild trust: A good PTA needs trust to function effectively. Your PTA can begin to rebuild trust through activities, open discussions, and … You can remind members that everyone was affected by this ordeal and reassure them that you are all going to get through it together.

Learn from your mistakes: An event such as this can bring to light some of the problems that your PTA may have overlooked. Was there only one member handling money? Was cash deposited days after it was received? Were bank statements reviewed monthly by multiple members? Wherever there are cracks in your system, now is the time to reinforce your processes and build a better and stronger PTA.

Allow time to heal: It may be tempting to push everyone into getting back to business as usual. However, expectations like this can rub members the wrong way and may cause more discomfort. Talk to your group and find out how everyone feels about upcoming events or projects. With some time, your PTA will surely find its groove again.

Get back to business: Although you want to allow time for healing, you will also don’t want to get stuck in a rut. You don’t have to begin planning fundraisers if you feel your community isn’t ready. However, planning activities such as community events or school appreciation projects can help your PTA feel united once more.

How Much Does Embezzlement Insurance for PTA Groups Cost?

What does it cost to fully secure thousands of dollars in PTA funds? A lot less than you may think.

AIM wants to give your PTA its best chance. To do this, we have made embezzlement insurance for PTA groups affordable. Many PTA groups can purchase this PTA insurance, starting at $64* annually. That is less than $1 a day to protect your group’s future.

We also want your PTA to choose the embezzlement insurance that is right for you. For this reason, we offer three standard coverage amounts that you can choose from:

$10,000
$25,000
$50,000

Although these are the standard amounts offered, we have limits up to $250,000. However, we ask that you call AIM for specific pricing.

*Prices vary by state and limit.

Requirements and Conditions for PTA Insurance

To ensure that your claims, should one ever arise, are not denied, please remember to follow all the requirements. This would include:

Your PTA must conduct an annual audit/review of the books by an audit/review committee (2 or more people organized for the purpose of audit) or a qualified accountant.
The monthly bank reconciliation must be reviewed and signed by someone who does not have the authorization to sign checks. Financial software does not qualify under this requirement.

Are there exclusions for Embezzlement Insurance?

Our policy does not cover funds that 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.

Whether you are talking about embezzlement, robbery, or theft, these are all serious crimes. To process a claim, you must notify the authorities in your area and provide us with a police report naming the individual you suspect embezzled the funds.

What Are the Steps in Filing a Claim for Your PTA?

One of the most important parts of having insurance is being able to use it. Reporting a claim is easy with AIM, simply follow the steps below:

Go to our “How to Report a Claim Page“
On this page you need to click the red “Report a Claim” button — this button will redirect you to our downloadable PDF form
You must to open the form using Adobe Acrobat Reader, to enable the “fillable” format
This form can be completed electronically or printed it out and completed by hand
Submit the form to AIM via fax, mail, or email — the contact information you need is provided at the bottom of the form

What Does PTA Insurance for Embezzlement Cover?

Our embezzlement insurance for PTA groups is a blanket bond coverage. That means that no matter who embezzles or steals your funds, you will be covered.

For example, let us say you have tasked a volunteer to deliver money to your treasurer, and then this volunteer kept some for themselves. Then another time, you entrusted money to your PTA president to deposit into the PTA bank account, but the president only deposited half the amount. In either one of these instances, your PTA insurance for embezzlement would replace these once the proper steps were taken.

How Can My PTA Apply for Embezzlement Insurance?

AIM makes it easy for PTA groups to apply for embezzlement insurance. The process takes just minutes.

Visit the Embezzlement Insurance page on our website
Click the red button, “Get a Quote and Buy Online in Just Minutes” — this will redirect you to a page prompting you to choose your group type
Choose the group: PTA. A short pop-up with our eligibility requirements will ask about your eligibility to proceed
Answer follow-up questions
Click the green button, “Proceed to Quote Request.”
You will then be taken to a two-part application form that you must fill out
Finally, click “purchase coverage.”

This process is fast and easy. However, if you are experiencing a problem or have questions, feel free to call our representatives. Our helpful agents are on call 24/7.

Remember, right now, your PTA funds are in more danger than they have ever been before. That is why it is more important than ever to be vigilant and maintain proper oversight of your finances. Unfortunately, many families are struggling with unemployment and having to make difficult decisions for their household. In times like these, “borrowing”from your PTA, PTO, or Booster Club may seem like a temporary solution for those bearing the brunt of these unforeseen circumstances.

Take precautions and learn more about embezzlement insurance for PTA groups today!

AIM is here to help your organization succeed. Check out our other blogs for fundraising inspiration, tips, PTA, PTO, or Booster Club guidance, and more!

PTA Insurance for Embezzlement Protection

What is Embezzlement Insurance for PTA Groups?

How Can We Protect Our PTA From Embezzlement?

What Are Some Examples of PTA insurance Claims?

How Do You Move Forward if Your PTA is the Victim of Embezzlement?

How Much Does Embezzlement Insurance for PTA Groups Cost?

Requirements and Conditions for PTA Insurance

Are there exclusions for Embezzlement Insurance?

What Are the Steps in Filing a Claim for Your PTA?

What Does PTA Insurance for Embezzlement Cover?

How Can My PTA Apply for Embezzlement Insurance?

You may also like

Pros and Cons of Crowdfunding for Parent-Teacher Groups

You may also like

How to Prevent, Identify, and Deal with Embezzlement of Your Group’s Funds

You may also like

Ideas and Insurance Answers for Your Fall Festival or Carnival

You may also like

Upcoming School Year Prep & To-Dos for Parent-Teacher Groups

You may also like

Resources to Help PTAs, PTOs, and Booster Clubs Succeed

Resources

Insurance Programs

Connect