Introduction to Athletic Booster Clubs
Athletic booster clubs are the most common booster organizations found across the country. These clubs help to ensure that student-athletes have the necessary equipment, uniforms, facilities, and travel funds to excel in their sports.
While the focus of many leaders is on the tangible aspects of running a booster club, one crucial component often goes unnoticed – insurance protection. It is important to note that AIM Insurance does not cover specific athletic events like clinics, camps, or the actual injuries to the participants’ themselves. Instead, we work to protect your club, its assets, and the people who make it happen.
In this blog, we’ll discuss the different types of insurance coverage and how to choose the right plan for your club’s needs, keep reading to learn more.
The Importance of Insurance for Athletic Booster Clubs
Proper insurance coverage is more than just a safety net. It’s a shield against losses that can lead to serious financial and legal implications for your group. Let’s start by discussing your group’s risks and the protections that insurance can offer.
Protecting the Club’s Finances and Assets:
Your club manages funds raised through various activities, such as raffles, concession sales, and fundraising events. When money is involved, so are risks. Mismanagement or theft can result in losing funds or significant financial strain on the club.
One of the most concerning risks is embezzlement. According to the Association of Fundraising Professionals, fraud and embezzlement are common in organizations that handle money. Booster clubs are no exception. In fact, many of them have experienced financial mishaps that could have been avoided with proper oversight and insurance coverage.
Imagine this horror story: You discover that significant amounts of money have gone missing after a series of fundraising events. After conducting an internal investigation, you learn that a trusted volunteer with access to the club’s bank accounts has been embezzling funds. Your club’s finances are in disarray, and because your group has no insurance to cover the loss, the club is left with significant financial burdens that could take years to recover from.
Unfortunately, this kind of scenario is common. Embezzlement claims happen more frequently than most people realize, and while no one expects these things to happen, booster clubs are not immune to the risk of internal fraud. The worst part is that the very student-athletes the group was created to support end up suffering.
Safeguarding Members and Participants
Although insurance may not cover every single athletic event or activity the club organizes (including the actual sporting events themselves), booster clubs still host a variety of events that put the club at risk for liability:
Key Risk Areas for Booster Clubs:
- Concession Stands: Selling concessions is a popular way to raise funds for athletic programs. While selling snacks and drinks may seem low-risk, it can lead to serious incidents if food allergies need to be managed correctly or if the space needs to be appropriately organized and cleaned. For example, a slip-and-fall accident may result in an injury that leaves your booster club responsible for medical costs and legal fees.
- Fun Runs and 5K Events: Many booster clubs organize community runs or other outdoor events as fundraisers. These events often involve large crowds, road traffic, and participants with varying fitness levels. Injuries are a common risk in events like these. If a participant is injured during a fun run or related event, the club could be held responsible for their medical costs, mainly if the event wasn’t adequately insured.
While insurance may not cover specific athletic competitions, your booster club bears legal and financial responsibility for the events you organize. This is why having the right type of insurance is essential for covering physical injuries and protecting against financial and reputational harm.
To learn more about planning safer events, read our blog “Navigating High School Fundraising: What to Avoid and Safe Alternatives.”
Understanding Insurance Coverage for Athletic Booster Clubs
So, what kind of insurance should your booster club have? Understanding the different types of insurance coverage is essential to ensuring that your organization is adequately protected. Here are a few key types of coverage that every athletic booster club should consider.
Directors and Officers Insurance
The officers of your athletic booster group are exposed to potential liabilities for any decision they make, whether individually or as part of your organization.
Your group and its officers may also be sued for:
- Inappropriate use of funds
- Wrongful acts, misleading statements, or negligent acts
- Discrimination
- Not following your by-laws
- Misrepresentation
Directors and Officers Insurance provides funds to cover these decisions if a lawsuit is brought against your group or its members. It does not cover:
- Criminal acts
- Any knowingly wrongful act
- Willful or reckless behavior
- Dishonesty
General Liability Insurance
This is the most important coverage for a booster club, as it protects your group if someone is injured at one of your events or if property damage results in a lawsuit. It also covers bodily injury, property damage, and personal injury claims, such as defamation or invasion of privacy.
Remember the slip-and-fall accident we mentioned earlier? Liability insurance would cover the medical expenses and legal costs if the injured person decides to file a lawsuit. Without liability insurance, your booster club could be personally liable for these costs, potentially draining the club’s funds and jeopardizing its existence.
Property Insurance
Booster clubs often own various fundraising materials: popcorn machines, tables/chairs or even raffle items. These are usually stored in facilities rented or owned by the school district. Can you afford to lose those?
That’s why property insurance is so important. It covers your group’s assets against loss or damage due to fire, theft, or natural disasters.
For example, if a fire broke out at a local facility where your booster club’s equipment is stored, property insurance would cover the replacement cost of the damaged items, ensuring that your athletic programs don’t get burned.
Embezzlement Insurance
As mentioned earlier, embezzlement is a significant risk for booster clubs. Embezzlement insurance (fidelity coverage) protects the club against financial theft by volunteers, board members and even third-party theft. In addition, This type of coverage can be vital in ensuring that, if someone mishandles club funds, the club will have financial protection to recover some or all of the lost money.
This coverage is essential for booster clubs that manage large sums of money raised through events and donations. Without embezzlement insurance, your club could face financial hardship in the event of fraud, leaving you scrambling to raise funds to cover the loss.
Choosing the Best Insurance Options
Selecting the right insurance coverage for your athletic booster club may seem daunting. However, AIM (Association Insurance Management) specializes in providing tailored insurance coverage for booster clubs nationwide.
AIM is recognized as the most trusted insurance provider for PTA/PTOs and booster clubs. Their services are designed with the unique needs of these organizations in mind, offering coverage options that protect against the risks that many other insurers may overlook. AIM provides:
- Customizable insurance plans that cater to the specific needs of each booster club
- Liability, property, and embezzlement insurance options that cover a wide range of risks
- Affordable premiums that are designed to meet the budget constraints of most booster clubs
- Dedicated support from experts who understand the intricacies of managing a booster club’s risks
Choosing an insurance provider like AIM ensures that your booster club will be adequately protected and gives you peace of mind, knowing that your organization’s finances, members, and assets are safeguarded.
As a booster club parent or volunteer, you are vital to your child’s athletic program. With that role, you also have the responsibility to protect your club’s assets and members.
What’s next? It’s time to study your group’s insurance needs. Then, give AIM a call to protect your club. Then, you can focus on what’s really important: supporting student-athletes.
Best of all, you can get a quote for your group in just minutes. Visit aim-companies.com to get started.