School insurance policies, however, typically don’t cover the activities and liability of the officers and volunteers of the booster clubs because these organizations are usually considered separate legal entities from the school.
Windermere, FL (Vocus) May 18, 2010
Parent Booster USA (PBUSA) announced that it has joined with Association Insurance Management (AIM-Companies) to provide a low-cost insurance program for school booster clubs. Through the program, school support organizations, including athletic, music, academic and other booster clubs, may obtain general liability, directors and officers, property and bonding insurance.
“Booster clubs and schools often mistakenly believe that the school’s insurance will cover liability and legal claims of its school booster clubs,” noted Sandra Pfau Englund of PBUSA. “School insurance policies, however, typically don’t cover the activities and liability of the officers and volunteers of the booster clubs because these organizations are usually considered separate legal entities from the school.”
School booster clubs should consider carrying four different types of insurance: general liability coverage, directors & officers insurance, property insurance and fidelity bonding. General liability insurance covers things like trips, falls and other injuries at booster club events. Directors & Officers insurance covers liability of the parents and others who are serving as officers and volunteering to help the booster club. Property damage insurance covers loss of property, including items such as gift wrap and cookie dough purchased for a fundraiser that may get damaged prior to delivery to the buyers. Fidelity bonding provides coverage for the organization of its cash and other assets that are handled by volunteers.
Englund stated that nonprofit insurance rates vary greatly. “PBUSA is excited to join with AIM to provide this insurance program. AIM offers a good product at one of the lowest costs we’ve seen for booster club insurance,” said Englund.
PBUSA is a national nonprofit organization that provides federal 501(c)(3) tax exempt status to its members under an IRS group letter ruling. PBUSA also provides guidance and assistance to help school support organizations operate effectively.
More information is available at the PBUSA website: http://www.parentbooster.org.