Most PTAs aren’t sure how to protect themselves against the unexpected. So what PTA insurance plans can best cover your people and organization without breaking the bank? This and other PTA insurance questions demand answers. Yet these issues are not addressed by even some of the best PTA websites.
This piece examines insurance solutions for your group by answering questions you ought to be asking! The answers surrounding your options can bring clarity, security, and peace of mind, empowering your PTA to make informed insurance decisions. By the end of this post, you will know how to secure optimal protection for your group and the parents who support it. But first, let’s look at why insurance is so critical for PTAs.
Why Your Organization Needs PTA Insurance
Consider the burden of personal liability if there is an accident at one of your fundraising events. That could potentially jeopardize your group’s financial security. It could even affect your checking account, savings, even personal assets like your 401k. Is this a risk you or your PTA group are willing to take? A better route is to prioritize safeguarding your organization, its people, and yourself by obtaining the proper insurance.
The clear value proposition of PTA insurance coverage is the peace of mind it gives to your organization and members. It protects against financial risks, personal liability, and unforeseen events. Knowing this lets your PTA focus on what matters most—supporting students—without the threat of financial setbacks or legal consequences.
Now let’s dig into the types of coverage, starting with General Liability Insurance. PTAs prioritize this type of insurance due to high-level PTA mandates for its broad coverage and ability to mitigate risk.
Why General Liability Insurance Matters
Consider the concept of liability from this perspective:
“My child was injured at your PTA event, and it’s YOUR fault.”
Not having PTA liability insurance is a concern because it puts your organization at risk of legal action or claims. These typically arise from accidents or injuries that happen during fundraising events. And the repercussions of not having coverage can be catastrophic. PTA General Liability Insurance provides peace of mind and protection for members and volunteers, so don’t hesitate to secure your organization’s future operations.
What General Liability Event Insurance Covers
General PTA Liability Insurance covers* lawsuits that come from bodily injury claims. It also covers medical payments for injuries outside of a lawsuit, which amount to thousands of dollars. This is automatically included up to $5,000 in the insurance policy with additional coverage available for purchase. AIM’s General Liability Insurance for PTAs starts at just $65 per year.
What Types of Events/Activities Are Covered?
General Liability Insurance covers a range of PTA parties, events, and activities. Some of those include auctions, after-school programs, arts & crafts activities, carnicals, enrichment programs, and many more.
Are Signed Waivers from Parents Necessary for Events?
Using waivers as a risk management practice is highly advisable but not mandatory. Waivers foster a sense of responsibility among parents and help discourage lawsuits. However, while waivers serve as an extra layer of defense in court, they don’t prevent someone from instigating a lawsuit against your group.
Can PTA Events Take Place Outside of School Grounds?
Absolutely. AIM’s flexible insurance lets your parent-teacher group hold events most anywhere in the US. So whether your event happens in the school’s gym or a local park, don’t worry; you can host your function off-site while enjoying the benefits of comprehensive coverage.
This table summarizes other types of useful insurance for parent-teacher groups.
|PTA Insurance Types
|Covers financial losses from misappropriation of funds, theft within the organization, and external theft
|Personal Property Insurance
|Protects physical assets like group equipment and fundraising supplies against damage or loss caused by fire, theft, or natural disasters
|Directors & Officers Insurance
|Shields officers and directors from personal liability arising from alleged wrongful acts or decisions made on behalf of the PTA
Let’s review these in more detail before moving on to the general PTA insurance FAQs.
Does Your PTA Need Embezzlement Insurance?
Sadly, the most unlikely people sometimes take off with hard-earned PTA funds intended for school programs. When that happens, it’s equally disheartening and infuriating. The pain caused by such betrayal can be overwhelming and financially destructive.
Safeguarding your PTA community against embezzlement ensures that your funds are protected and utilized for their intended purpose. PTAs that invest in Embezzlement Insurance can reduce losses associated with PTA embezzlement.
Who Does Embezzlement Insurance Protect PTAs Against?
PTA Embezzlement Insurance offers financial protection against theft or misappropriation of funds inside your organization. It covers losses if fraud is committed by the people entrusted with your group’s money. That typically includes board members, employees, volunteers, and even couriers.
How Do PTAs Make an Embezzlement Claim?
Taking proactive measures to protect your PTA from embezzlement should be a priority. But even the best practices don’t always prevent embezzlement, robbery, and theft, leaving you no option but to submit a claim. This process is simple to complete and you can get started with AIM’s “Report a Claim” form.
Keep in mind there are two prerequisites before you can report an embezzlement claim:
- Notify the local authorities of the crime
- File a police report naming the suspect(s) and submit the report to AIM ASAP
Protecting Your Group Assets: Property PTA Insurance Questions
PTAs must safeguard their property against the ever-present risks of fire, theft, vandalism, and other credible threats. How protected are your raffle merchandise, auction items, fundraising supplies, school store supplies, emergency relief provisions, etc.? There can be a lot of uncertainty about the safety of these possessions throughout the school year and over the summer in storage. And the thought of facing financial setbacks or disrupting essential operations is stress you can do without.
AIM’s Affordable Property Insurance safeguards against risks to PTA property. Insuring your organization’s assets costs much less than replacing them from the group’s funds.
Safeguard Leaders with Directors & Officers Liability
People can prosecute your PTA officers for making perceived wrongful decisions, causing undue stress and uncertainty in members’ personal and professional lives. Imagine the weight of being sued for alleged inappropriate actions, misrepresentations, and unintentional dissemination of false information.
The looming threat of legal action can disrupt life, generate anxiety, and undermine reputations. And the financial strain and burden of defending yourself further intensifies the situation. Your PTA can avoid these risks.
AIM’s comprehensive Directors & Officers Insurance offers officers protection when facing lawsuits. It covers legal defense expenses, which safeguard personal assets and reputation. With AIM’s support, PTA officers can confidently fulfill their roles, knowing they are shielded from
any potential repercussions of their decisions.
PTA Insurance Questions Parents Need to Ask the School
Asking the right insurance coverage questions empowers parent-teacher groups to make informed decisions. Being armed with the right answers helps protect your members and assets.
Isn’t Our PTA Covered Under the School’s Insurance Policy?
While this practice was once common it’s more rare today as school’s cut coverage to help them meet shrinking budgets. You may be lucky, but never assume the school’s insurance includes your PTA, as this varies across school districts. Some may have event insurance that only covers activities during school hours or on campus. But many schools are no longer providing insurance coverage for parent-teacher groups.
Even if you believe your PTA has coverage, ask for written confirmation from the school. Communicate proactively, giving detailed information about your group’s activities. Then, ask the school to explicitly state the inclusion/exclusion of those activities in their policy. This approach will ensure clarity and help you take decisive action to insure your group.
Aren’t PTA Groups Immune from Liability?
Many PTA groups think they, and other nonprofits, are immune from liability, which is NOT the case. Incorporating your PTA offers benefits, but there have been instances where the “corporate shield” did not prevent liability actions. Trusting the misconception that PTA groups are automatically protected from liability is vital. To safeguard your PTA, learn the potential risks and take measures to protect your group and its members from unforeseen liabilities.
How Do I Know if a Plan Is Right for My PTA?
Choosing the right, most affordable insurance coverage for your PTA can be overwhelming. To avoid this confusion, talk with the experts. AIM can guide you through our four key options for PTAs: General Liability, Professional Liability (Directors & Officers), Embezzlement Insurance, and Property Coverage.
PTA Insurance Questions: How Much Should We Expect to Pay?
PTAs worry about insurance costs because they must ensure affordability and budget align with their group’s expenses. The problem is that costs vary depending on the state. That makes it impossible to give exact figures in these frequently asked questions. Just know that AIM offers affordable options starting at $65 per year. For accurate pricing information and insurance tailored to your group’s needs, contact AIM to learn more.
How Does Our PTA Apply for Coverage?
You can apply directly through our website or contact our knowledgeable representatives at 1-800-876-4044 to discuss your group’s needs. We will help you select the ideal plan using plain language, suggesting policies with the right coverage to protect your PTA.
Summing Up PTA Insurance Options
Asking the right insurance questions empowers your PTA to make informed decisions and secure optimal protection. Understand that PTAs aren’t immune from liability. And remember not to assume school coverage for your group. Instead, ask for written confirmation to see if and how you’re covered by the school’s insurance policy.
AIM’s General Liability Insurance covers lawsuits arising from accidents at your events. Our Embezzlement Insurance protects against the misappropriation of funds, and Property Insurance safeguards your assets, whether owned or hired. And Directors & Officers Liability Insurance shields your leaders from legal actions*.
*Some exclusions apply. Review your policy or contact us directly with coverage questions!