Just like a business, your PTA, PTO or Booster Club is exposed to certain risks like theft, embezzlement or lawsuits. You may do everything you can to prevent something from happening to your Parent Group, but in reality, no one can guarantee that things are going to run smoothly all of the time.
PTA, PTO and Booster Clubs are not immune from liability. If your organization is held liable but doesn’t have the means to reimburse for damages either through insurance or cash reserves, the personal assets of members could be at risk. In the event of a lawsuit, your Parent Group insurance will also pay attorney fees to defend you, whether the lawsuit has merit or not.
There are four separate types of coverage that your PTA, PTO or Booster Club needs to be aware of:
1. Event Insurance (General Liability with Medical Payments)
General Liability coverage protects you from lawsuits if someone was injured at one of your organization’s activities and held you responsible.
The liability limit for a lawsuit is $1,000,000 or $2,000,000, with no deductible. Some activities covered include skating parties, fall carnivals, bounce houses, dunking booths, fun runs, auctions and more. Injuries resulting from transportation are not covered, however.
General Liability coverage also has a separate component that gives access to a minimum of $5,000 in medical payments (even if no lawsuit has been filed) for injuries sustained at one of your organization’s activities.
We also offer Social Media Liability Coverage as a supplement to your General Liability policy. This coverage is designed to protect you from liability in the event you accidentally misuse or disclose information on your website or other social media site. This includes misuse of the logo, copyright, pictures, confidential information and other misrepresentations or misappropriations.
2. Embezzlement Insurance (Bond)
Bond coverage protects your money. It covers anyone who your organization trusts with the money whether it’s a President, Treasurer, board member, volunteer or courier. If that person embezzles (runs off) with your money, this coverage would replace those missing funds.
Standard bond limits are $10,000, $25,000, and $50,000, with a $250 deductible.
3. Business Personal Property (Inland Marine)
This coverage protects your raffle merchandise, auction items and fundraising supplies while these items are in your possession. This coverage also protects any personal property of your organization 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.
4. Directors and Officers Liability (Professional Liability)
Directors and Officers liability coverage protects the organization from lawsuits for “wrongful acts.” If someone sued the officers of your organization for mismanagement, misrepresentations, dissemination of false or misleading information or inappropriate actions, this coverage would pay to defend you.
This coverage is also referred to as Directors & Officers Liability (D&O). The coverage limit is $1,000,000, with a $1,500 deductible.
If your PTA, PTO or Booster Club is not protected, apply and get covered today!