If you’re starting a booster club or volunteering for one, you have the best interests of your children at heart. This is an opportunity for you to directly influence the education and extracurricular activities that they will have the chance to enjoy. Plus, you’ll enjoy the sense of fulfillment that comes with volunteering and working with other parents in your community,
However, being part of a booster group can also expose you to liability if the group does not have insurance. Every school parent group faces potential risks, including lawsuits, accidents, and injuries. Ensuring you and your group are appropriately protected with booster club insurance is essential.
The main reason why 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 insurance needs. To protect your group and its service to your students, we’ve put together this article to help you better understand why proper protection is essential for the success of your organization.
Why Do Nonprofit Organizations, Such as a Booster Club, Need Insurance?
In an ideal world, organizations like yours would not need insurance, but life isn’t perfect. Damage, theft, embezzlement of funds, and accidents are unexpected, unpredictable, and potentially devastating.
PTAs, PTOs and booster groups often believe that because they’re not for profit, they don’t need insurance. Unfortunately, that’s not true. Booster clubs are NOT immune from liability. They are subject to many of the same risks as for-profit businesses, including property damage, liability claims, and employment-related issues.
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 pay for everything out of pocket. Insurance is not just about the present, it’s about securing the future of your group and its volunteers.
Furthermore, nonprofits often work closely with vulnerable populations, which can increase their liability exposure. Insurance is not just a safety net; it’s a necessary tool for risk management and financial stability.
There are different kinds of insurance policies for every type of risk. As booster clubs plan events and host fundraisers, they often own property such as popcorn machines or auction/raffle supplies. They may even have money in a bank account. That properly can be damaged or stolen and the funds they’ve raised may be embezzled.
AIM’s insurance is specifically tailored to the needs of these groups. In fact, they don’t insure anyone but parent-teacher groups
All About Liability Protection
AIM Insurance offers one-day event insurance and annual event insurance coverage that protects any fundraiser your group puts on, including school carnivals, dances, galas, fun runs, cookouts, and more. If an accident happens—like slips and falls, injuries, and property damage.
Some parent groups think that their school’s insurance protects their group. However, that’s not always the case. Be mindful when planning your events on school property or other venues, as they don’t all carry the same liability. The level of risk varies based on the size, venue, and activities.
Coverage for Event Accidents
Did you know that you, as an individual member or officer of your organization, could be held personally liable for an accident that occurs at one of your events? Someone could slip and fall at a skating party. A volunteer working in your event’s kitchen might get burned while making french fries. Or a rented bounce house could be where a child breaks their leg.
An accident during an event could erase all of the hard work and good will your group has built up. By their very nature, accidents and challenges can’t be planned for. However, you can plan to be insured against them.
Injury Claims
If a volunteer or attendee is injured at one of your events, the medical bills and potential lawsuit could cost your group thousands of dollars. With insurance, these costs would be covered, potentially saving your group from financial hardship.
Reimbursement for Property Damage
Property insurance for booster clubs has several exclusions you should be aware of. Some 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 ensure you know all limitations before agreeing on a policy.
Here are a few Property Insurance Scenarios:
- 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.
- Your group’s popcorn machine overheats, causing a small fire that also burns all your unpopped kernels. Property protection covers the costs and replaces the equipment and food, ensuring that a high selling food item stays on your fundraising menu.
- A powerful storm overturns a trailer storing valuable equipment. The insurer promptly reimburses the club, replacing all property damaged beyond repair.
Your club’s property and equipment are at risk during storage, transit, and events. Property destruction can result from fire, smoke, water, intentional defacement (such as graffiti and vandalism), accidents, and freak weather. The likelihood of these risks depends on your location, the time of year, and the type of fundraiser.
A Safeguard Against Liability
AIM Insurance offers one-day event insurance and annual event insurance coverage. Our policies are flexible and can be tailored to meet your club’s specific needs, ensuring that you have the right level of coverage at all times.
This policy includes attendees, volunteers, and even booster club members. It also covers event setup and teardown. Social Media liability is also available to supplement our general liability policies.
Every AIM general liability policy includes a medical payment limit of $5,000. Options for increased medical payment limits are $10,000, $25,000, and $50,000, with zero deductible. With AIM Insurance, you can be confident that your booster club is well-protected.
Protection Against Lawsuits
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, event locations, or other administrative choices. Protecting your officers from lawsuits over decisions and actions is a wise choice.
This type of coverage defends against a wide range of claims, including mismanagement, misrepresentation, or inappropriate actions. It can also extend to the wrongful use of organization funds, misleading statements, general negligence, discrimination, and deviations from by-laws.
There are certain exclusions that within your Directors and Officers Liability policy. Excluded items include any knowingly wrongful or criminal act, willful or reckless behavior, and dishonesty.
Otherwise, this coverage will provide comprehensive protection for your organization’s leaders and ensure they can make decisions without the fear of legal repercussions.
If you or an officer of your group are 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.
Risk Management for Booster Clubs
There are two costs that come with insurance: the cost of having it and the price of not having it when something goes wrong. While the price of insurance may seem like an additional expense, it’s important to consider the potential savings in the event of a claim.
There’s also the security that coverage brings, which is invaluable. Instead of worrying about losing money and being sued, your volunteers can focus on what matters most: helping your kids through advocacy and fundraising.
Speaking of cost — most parents may not know is that our insurance is incredibly affordable — starting at just $65 annually! That’s a small price to pay for peace of mind.
Securing Your Booster Club’s – and Your Volunteers’ – Future
Insurance makes much sense from fundraising events to medical payments, property coverage, theft/embezzlement, and officer protection. There are plenty of reasons to take out affordable tailored policies and no excuses not to.
AIM Insurance, a trusted name in the industry, offers a variety of affordable and value-oriented property insurance policies. We’re a national leader in this form of insurance, with a long history of covering over 22,000 parent-teacher and parent groups across the country. Our experience and expertise ensure that you receive the best possible coverage for your booster club.
In the unfortunate event that you need to make a claim, our process is straightforward and efficient, ensuring that you receive the support you need as quickly as possible.
Whether you’re applying for a specific policy or want a quote, you can get an answer in just ten minutes. To get started, click “Get a Quote” on our main page and follow the directions on screen. And if you have another question or want to know something specific about our coverage, you can reach us at 1-800-876-4044.