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PTA Insurance

Learn why your PTA needs insurance to protect against the unexpected, transfer risk, and safeguard assets. Understand different insurance types like General Liability and Officers Liability to ensure comprehensive coverage for PTA events.

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PTA Insurance

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  1. PTA Insurance Presented by AIM Client Relations Specialist

  2. Why does your PTA need insurance? To protect against the unexpected To transfer risk or financial burden To protect the assets of the PTA and the personal assets of it’s members To protect your property (Popcorn machine, fundraiser merchandise, school store supplies, etc) Insurance will pay attorney fees to defend you and your fellow board members

  3. Requirements of a PTA Sponsored Event The event must be VOTED on by PTA The event must be APPROVED by PTA The event must be SCHEDULED by PTA The event must be PLANNED by PTA Majority of the manpower must be PROVIDED by PTA MEMBERS

  4. What Kind of Insurance Should You Consider? General Liability Accident Medical Fidelity Bond Property Insurance Officers Liability

  5. General Liability • Activities to be covered under General Liability policy: • Roller Skating Parties • Dances • Carnivals • Fun Runs • Auctions • Concession Stands Just because it’s called “General” does not mean you have coverage for everything! Covers lawsuits arising from bodily injury/Property damage Minimum policy limits: $1,000,000

  6. General Liability Things General Liability does NOT cover: Aircraft Transportation Bungee Jumping Hot Air Balloons Workers Compensation Organized Sports PTA money Property bought for the school *Visit our website www.aim-companies.com under Resources for a detailed list (Covered/Excluded List)

  7. General Liability Suggestions to help protect YOU: When using vendors or contractors Make sure you see a current copy of their Certificate of Insurance Have them sign a Hold Harmless Agreement Take a list of the events you plan to have during the year and have the Risk Manager or Superintendent sign off on each item to show the school is offering coverage * Visit our website www.aim-companies.com under Resources (Risk Management Guide)

  8. Accident Medical Accident Medical is only made to compliment the General Liability policy, NOT to replace it Designed to pay out of pocket Medical bills ONLY not liability Provides additional medical coverage for injuries sustained at a sponsored PTA event General Liability coverage automatically comes with $5,000 limit at no cost. Additional coverage limits are available at $10,000, $25,000 and $50,000 for additional premium.

  9. Fidelity Bond Protects the cash or cash equivalents of the PTA against embezzlement, robbery, and theft Includes: Cash, Travelers Checks, Scrip Anyone who handles money should be covered by a crime policy • Look for a policy that is a “blanket policy” to cover not only the treasurer, but anyone who handles PTA funds • Common limits for bond policies: $10,000, $25,000 and $50,000 (higher limits available, please call) • Safest practice to determine limit needed: Take your annual budget and carry a bond for that amount

  10. Fidelity Bond Requirements for bond coverage: Monthly bank statements need to be reviewed and signed each month by someone who does not have authorization to sign checks (printed e-statements are fine) Annual audits (financial reviews) must be conducted by an audit committee or qualified accountant Signed monthly bank statements and annual audits need to be retained on file and available for review if needed.

  11. Additional Recommendations Money should never be kept at home Two people should always count money and both should sign receipt verifying the amount Never sign a blank check Look for checks out of sequential order on bank statements Never make a check out to cash Put money in the bank ASAP Question checks made out to non-approved vendors

  12. Property Items not covered by property policies: School computers Playground equipment *Once items are no longer in your Possession, it is no longer your Property* • Covers items that the PTA purchased and in their CARE, CUSTODY, and CONTROL: • Popcorn Machines • Fundraising Merchandise • Auction Items • School Supply Store • Spirit Wear

  13. Director’s & Officer’s Liability Protects PTA board members if named in a lawsuit for mismanaging or misrepresenting their group Covers: Mismanagement of funds Misrepresentation Discrimination Actions detrimental to the community Does NOT cover intentional acts, dishonesty, or willful/reckless behavior Will pay your legal bills & provide protection against certain allegations

  14. Questions? 800-876-4044 www.aim-companies.com

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