PTO/BOOSTER CLUB/SCHOOL SUPPORT GROUP COVERAGE SUMMARY


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INTRODUCTION
This summary presents a discussion about a General Liability, Blanket Crime and miscellaneous floating Property insurance program, specifically created for the operation of a School Support Group (SSG). The loss control guidelines and safety tips are designed to assist leadership with the establishment and maintenance of a safe and prudent SSG business operation, for the benefit of children. They are also the direct result of 54 years of SSG child injury loss experience. If you read this booklet cover to cover, you will begin to understand how you can better protect your personal assets, your SSG and your School District from the threat of financial loss and/or lawsuits.

R.V. Nuccio & Associates, Inc. is located in Toluca Lake, California. Existing management has worked nationally with School Support Groups (SSG) since 1976, when this insurance program for SSG was originally created. This program of insurance products is insured by FIREMAN'S FUND, one of our nation's oldest and most respected insurance companies. It was developed specifically for SSG's of all sizes, in any state or territory of the United States of America. This booklet is the intellectual property of R.V. Nuccio & Associates, Inc., and is copyright protected. Our national toll free number is 1-800-567-2685.

COVERAGE I LIABILITY PLUS
A. Personal Liability
SSG/PTO is a business, and a separate legal entity. As with any other business, it is held accountable to the public for it's actions, or lack thereof, with which it interacts. The majority of this responsibility lies with current and past leadership, such as the directors and officers of a particular SSG. Even though an accident or occurrence is the result of unintentional negligence, it is, nonetheless, considered negligence. This condition oftentimes leads to a allegation or lawsuit, wherein the SSG President, and all other officers and directors of the SSG, are personally and individually named, placing their personal assets at risk (home, vehicles, savings, attachment of future wages and earnings of both individual and spouse). In the U.S. court system, anyone can sue leadership at anytime for any reason. Suits against SSG leadership can be groundless or false, but still require a costly and highly specialized defense (some in excess of $250,000). If the lawsuit is not answered and properly defended, it is lost by default, and a judgment obtained against leadership. Responsibility to the public exposes a SSG and it's individual leadership to an element of risk, which can be transferred to another through the use of public or general liability insurance.

B. Who Is Insured
Liability Plus is available to most SSG's wishing to purchase this liability protection. Coverage is extended to include any member or volunteer.

C. What Is Insured
Simply stated, the policy provides commercial general liability protection for any operation or sponsored event on a blanket basis, except that which is excluded. There is a $1,000,000 limit per occurrence, with defense costs supplemental to that limit. Coverage is included for the following:

a. Bodily Injury Liability
b. Property Damage Liability
c. Personal Injury Liability
d. Advertising Injury Liability
e. Products Liability
f. Host Liquor Liability
g. Fire Legal Liability

D. Where Coverage Is Applicable
The geographic limitation of almost any insurance contract is described by its policy territory. The territory of this particular policy is the USA, its territories and possessions, Puerto Rico and Canada. There is no reporting requirement as to where a SSG event is to take place, provided it is within the definition of the policy territory.

E. When Coverage Is Applicable
A qualifying SSG may purchase annual coverage at any time during the year.

F. What Is Excluded
This program has specific exclusions usual to this form of commercial general liability insurance. It must be understood that this booklet is only a summary. It is not all inclusive, nor does it alter or waive any of the actual policy language. Questions regarding these exclusions, or this summary, should be directed to R.V. Nuccio & Associates, Inc at 1-800- 567-2685. There is NO coverage, and coverage is excluded for:

01. Abuse/Molestation/Corporal Punishment
02. Aircraft Liability
03. Amusement device, mechanical (inflatable device such as a Moon Bounce is O.K.)
04. Athletics/Sports (bowling, running event on school grounds, golf tournament, Walk-A-Thon, Jog-A-Thon, ice and roller skating parties are all O.K.)
05. Automobile Liability
06. Bungee jumping
07. Certain computer related losses
08. Employment related practices
09 Fireworks display or sales, pyrotechnics or rocketry
10. Fungi or bacteria
11. Use of any motorized vehicle
12. Pollution
13. Suits between insuredís
14. Watercraft Liability
15. Workersí Compensation

G. Incident Reporting And Claims Handling
Standardized Incident Report forms are provided upon request. When an incident occurs, the report is completed by an officer of the organization and mailed directly to R.V. Nuccio & Associates, Inc. The Incident Report is not a claim. It is a notification of an occurrence, and a confidential business communication between the SSG and R.V. Nuccio & Associates, Inc. This form must not be completed by the injured party and is instead, to be submitted without the knowledge of the injured party. Do not solicit a claim. Do not promise coverage. When an incident occurs, contact R.V. Nuccio & Associates, Inc. for guidance before you talk to anyone. We are committed to spend the time necessary to keep you out of trouble, and to keep this insurance program affordable

H. School District Liability
A SSG will sometimes have a tendency to rely upon school district liability insurance for protection. This has proven to be unsafe, as current claims exist, wherein school districts have filed cross-complaints against the SSG and its leadership. The following is a discussion of several points which should be considered.

01. Additional Insured
Some school districts will add a SSG to their liability polices an additional insured. Areas of a potential problem are:

a. There could be no coverage for claims or lawsuits that arise from activities held independently, or outside of school district operations.

b. There could be no coverage for claims or lawsuits that do not also name the school district in the lawsuit.

02. Premises Limitation
Some school district policies limit coverage to specific district premises such as school grounds. Because of this restriction, SSG would have no protection from suits arising from activities held off school premises.

03. Self-Insured Retention
School districts, depending upon their size and financial strength, will sometimes carry what is termed a SIR, or Self-Insured Retention on the district liability policy. This SIR acts as a deductible, and is paid by the district in the event of a loss. If a SSG is named on a school district policy that contains a SIR, the SSG may be held responsible for the payment of this deductible in event of a loss. A SIR can range from $250,000 to $1,000,000 or more per loss or claim.

04. Separate Legal Entity
A school district and a SSG comprise two distinct legal entities, and have separate legal responsibilities not involving both. Negligence committed by one, does not necessarily mean negligence committed by the other. Therefore, both entities cannot be provided adequate protection under the same liability policy. If a SSG is under the assumption that the school district is providing SSG operations coverage, the SSG should obtain a letter from the school district business manager stating that all operations of the SSG are covered under the school district insurance program, both on and off campus for a 365 day period, and that the school district will be responsible for any self-insured retention or deductible.

I. Naming Other Entities/Committees On Your SSG Insurance
SSG and booster clubs, grad night committees or other community organizations represent different legal entities, much like a school district and a SSG, and cannot be properly protected under the same insurance policy. This condition exists whether or not the SSG sponsors and/or co-sponsors another organization, and can only be remedied by obtaining separate and individual coverage for the booster club, grad night committee or other community organization. Every time you name another entity on your policy, you have agreed to share your limit of liability, and in some cases, to defend that other entity should a lawsuit arise. Do not let any other entities, separate committees or Grad Night Committees use you for your insurance. Protect your insurance and use it only for your SSG.

J. Concessionaires Or Commercial Vendors
A concessionaire or commercial vendor, is a person (or organization) who has a for-profit attraction (such as a carnival amusement ride, skating vendor or food booth), that they will operate or conduct on behalf of the SSG (or for themselves) for a percentage of the receipts, or for a specified sum of money. Such a person (or organization) is an independent contractor. The SSG is protected against claims or suits arising out of the operations (unless excluded) of these independent contractors. However, the independent contractor is afforded NO protection under the SSG policy and must, in fact, provide the SSG with a Certificate Of Insurance. This Certificate Of Insurance should show that the independent contractor/vendor has in-force liability insurance with limits of a least $1,000,000, and it must also name your SSG as Additional Insured. The independent contractor will sometimes attempt to charge the SSG for the cost of this Additional Insured endorsement which must be added to their insurance policy. Because they are about to earn a profit, the price is negotiable, or if you are very convincing, the cost of the endorsement can be absorbed by the independent contractor (since they are about to make money). If the independent contractor/vendor is unable or unwilling to provide a Certificate Of Insurance naming the SSG as an Additional Insured, you are strongly advised to find another concessionaire, commercial vendor, or independent contractor.

K. Activities, Events And Loss Control
Following is a list of common activities and the loss control methods used to reduce potential liability. Follow these guidelines and you will be operating your SSG in a prudent manner. Of course this list is not all inclusive, so contact R.V. Nuccio & Associates, Inc. at 1-800-567-2685 for guidance relative to an activity or event that is not mentioned. We have been successfully advising SSG for over 30 years, and are committed to safety, and to this loss control concept. Although some of these activities are not covered by the policy, it is a business decision on the part of leadership as to whether or not your SSG will participate in an activity or event for which coverage is excluded. In some cases, separate Special Event policies are available to insure a particular event for a short duration. These separate, short duration Special Event policies must be quoted, so it is wise to plan far in advance.

01. Aircraft
Activities involving aircraft, including hot-air and lighter-than-air balloons. Aircraft coverage is excluded (not covered).

02. Animal Games/Rides/Rodeo/Roping
Because of a significant bodily injury exposure, you are strongly advised not to sponsor activities involving animals. This activity includes horseback riding, pony rides, elephant rides, donkey basketball or any type of game or ride involving an animal. Multiple injuries include broken necks resulting in permanent paralysis, broken backs resulting in permanent paralysis, permanent brain damage, broken ribs, and tooth loss. Do not do this activity. Should your SSG elect to proceed with this activity, follow these rules to reduce your exposure to a lawsuit:

a. Have all intended adult participants (or in the case of minors, their parents), sign a Liability Waiver available from your school district business manager; and,

b. Keep the event entirely on campus. Use only school property; and,

c. Use a vendor that is able and willing to add your SSG and the School District as an Additional Insured on no less than a $1,000,000 liability policy.

03. Athletic/Sports Activities Or Events
Athletic, sports, and physical type activities or events represent extremely high potential liability to a SSG, and have a very high child and adult injury incident rate. Because athletic and sport activities are excluded (not covered), the policy will not defend the SSG against a negligence lawsuit resulting from athletic or sports activities. Be aware that school districts will sometimes drop their athletic or sports programs because of the lack of funding or the extreme liability exposure. You are advised to fund these programs for the school district by donation, and not to run them directly as a SSG activity. Types of activities referred to within this section include but are not limited to aerobics, baseball, basketball, cheer leading, football, gymnastics, martial arts, swimming, tennis, track and field, volleyball, or any enrichment class or event involving athletic or physical type activities. The only exceptions (O.K. to have) to the Athletic/Sports exclusion are bowling, a running event held entirely on school grounds, a golf tournament, a Jog-A-Thon on school grounds, a Walk-A-Thon on school grounds or an ice or roller skating party. Should your SSG elect to proceed with this activity even though it may not covered by the policy, follow these rules to reduce your exposure to a lawsuit:

a. Have all intended adult participants (or in the case of minors, their parents), sign a Liability Waiver available from your school district business manager; and,

b. Notify, in writing, all intended adult participants (or in the case of minors, their parents), that your SSG does not have any insurance coverage for any type of injury resulting from participation in athletics or sports, and that they (the parents) will have to pay the medical expenses, if any; and,

c. Keep the event entirely on campus. Use only school property.

04. Baby Sitting/Child Care/Day Care
Although these activities are not excluded by the policy, the resulting lawsuit may be, as abuse and molestation is excluded by the policy. Should your SSG elect to proceed with this activity, follow these rules to reduce your exposure to a lawsuit:

a. Each childís parent or legal guardian should be within close proximity and on the premises at all times; and

b. All hot foods and hot fluids (coffee, tea and hot water) are kept away from the baby-sitting room or area; and

c. The childís parent or legal guardian is summoned to change diapers and to dispense medication; and

d. The ratio of adults (18 years or older) to children never exceeds one adult to each four children; and

e. So that no child is ever left alone with one adult, at least two adults must be present with the children in the baby-sitting room or area at all times, and each child must be within eyesight of both adults at all times, even if only one child is present in the baby-sitting room or area. Because this activity carries a significant molestation/abuse exposure, the two adult rule has been established for the protection of the volunteer, or employed baby-sitter. The second adult is a witness, which acts to alleviate groundless or false claims.

05. Bake Or Food Sale
This event should be held on school grounds. You should advise the contributing parents in writing, to take care in the preparation and storage of the food to be sold. Place special emphases upon the preparation and storage during transportation, of food items that are salmonella contamination prone, including but not limited to, beef, chicken, fish and food items that contain milk products or mayonnaise. Relative to baked goods, advise the parents not to use any type of hard candy as top decoration. This will damage teeth.

06. Block Parent Program/Safe House
Although this activity is not excluded by the policy, the resulting lawsuit may be, as abuse and molestation is excluded by the policy. This activity involves a nationwide criminal check and also specific research on child molesters. This activity is better left to the professionals. Should your SSG elect to proceed with this activity, follow this rule to reduce your exposure to a lawsuit: Use only the Mc Gruff or similar type program, as these programs are controlled by organizations other than the SSG, and involve the use of Federal, State, County and local police authorities.

07. Bonfire/Campfire
Because of a significant bodily injury exposure, you are advised not to sponsor this activity.  Several deaths have resulted from this activity.

08. Boy Scouts
Although this activity is not excluded by the policy, the resulting lawsuit may be, as abuse and molestation is excluded by the policy. This activity has a well known negative loss history as it involves the selection of supervisory personnel. It is better left to other larger nonprofit organizations, other than SSG.

09. Bungee Jumping/Device
Because of a significant bodily injury exposure, coverage for this activity is excluded (not covered). Multiple injuries include deaths and broken backs with resulting permanent paralysis. Stay away from this activity. It includes such activities as Bungee Jumping, Bungee Run and Velcro Man. Do not give gifts, rewards or door prizes that involve this activity. This activity is considered to be unsafe.

10. Candy Or Wrapping Paper Sales
You are advised to notify the parents in writing, not to allow the children to sell the items door-to door, and instead to sell to family and friends only. If the children are allowed to sell door-to door, this activity carries with it a high probability of kidnap, molestation and child abuse.

11. Car Parking
Because of a significant bodily injury and property damage exposure, coverage for this activity is excluded (not covered). This activity involves vehicle traffic control which carries with it a high probability of a child injury.

12. Car Wash
You are advised not to let anyone, other than the owner, move or drive the vehicle. This activity has a bodily injury and a property damage exposure. Keep this event small and tightly controlled.

13. Carnival/Fair Golf Game
This advisory refers only to a golf game at a carnival. Because of a significant bodily injury exposure, you are advised not to have this activity at your next carnival. A child or adult will loose front teeth from this activity.

14. Construction
Because of a significant bodily injury and property damage exposure, you are advised not to sponsor this activity. Let this activity be a school activity with the participants volunteering directly to and under the direction of the school. See the paragraph within this subsection regarding Playground And Other Equipment Or Improvements. In addition to a bodily injury exposure to participants, there is also an excavation exposure. Should your project damage a gas pipeline, water main or phone service to neighboring facilities, the consequential loss can be very large in scope. Leave this activity to the professionals.

15. Craft Fair
This event should take place on school grounds, and involves the sale of items that the children can give to their parents as Holiday gifts. You are advised not to sell any items which will pass through a Child Choke Testing Tube. You are also advised to appoint a volunteer parent that is an engineer, as the safety committee chairperson. Do not sell any items that you would not give to your own small children.

16. Crossing Guards/Traffic Control
Because of a significant bodily injury exposure you are advised not to sponsor this activity. You are advised to fund a crossing guard program for the school district and not to actively participate in the guard program, or any program that involves the control of vehicle traffic. SSG has had several child deaths resulting from this activity. If it is a SSG crossing guard and anyone is injured while crossing, the SSG and its leadership will be sued. Also, if the crossing guard does not show up for work, and a child is injured while crossing, the SSG and its leadership will again be sued, as the parents have come to expect a crossing guard attendant. This activity has a high probability of generating a large lawsuit.

17. Darts/Dart Games
Use specially designed blunt point dart games only.

18. Day At The Fair/Carnival
This carnival type activity should be held on school grounds only. Be sure to follow the guidelines mentioned previously within subpart J. Concessionaires Or Commercial Vendors and require all outside vendors to provide you with a Certificate Of Insurance naming your SSG and the School District as an Additional Insured on their $1,000,000 liability policy. You are also advised to appoint a volunteer parent that is an engineer, as the safety committee chairperson.

19. Dunk Tanks
Because of a significant bodily injury exposure, coverage for this activity is excluded (not covered). This includes Flushem, flush tanks or any similar type homemade or manufactured device. Multiple injuries include permanent eye losses, permanent brain damage, permanent paralysis, hands severed at the wrist, tooth loss, and loss of fingers. Do not do this activity. Use the Sponge Toss in lieu of the Dunk Tank or Flushem placing safety goggles on the victim. Should your SSG elect to proceed with this activity even though it is not covered by the policy, follow these rules to reduce your exposure to a lawsuit:

a. Do not rent this device and operate it yourself;

b. Do not use a homemade device.

c. Use a vendor that is able and willing to operate the device and to add your SSG and the School District as an Additional Insured on no less than a $1,000,000 liability policy.

20. Enrichment Programs-Academic
Because of a significant abuse, molestation, bodily injury, Workers Compensation and payroll tax exposure, you are advised to fund these classes for the school district and not to run them directly.  This activity carries with it all of the exposures of operating a school, which is outside the scope of a SSG.  In addition to a General Liability exposure, you are also exposed to a Workerís Compensation situation, and potential IRS tax and penalty problems, both of which are outside of the scope of this summary and this insurance program.  Even though you would like to treat the   teachers as independent contractors, the court will see it quite differently, relative to workers compensation requirements.  The State Board of Equalization will also see it quite differently, relative to payroll tax deductions.  Should your SSG elect to proceed with this activity, follow these rules to reduce your exposure to a lawsuit.

a. You must have at least two adults (over 18 years of age) in attendance in each class at all times. Because of the molestation/abuse exposure, the two adult rule has been established for the protection of the volunteer, or employed teacher. The second adult is a witness, which acts to alleviate groundless or false claims.

b. Offer academic classes only, not athletic or physical activity classes.

21. Enrichment Programs-Athletic
See Enrichment Programs-Academic.

22. Events With Over 1,000 Attendees
Because of a significant bodily injury exposure, you are advised not to sponsor large events. Larger events have greater exposure to loss. Most large events can be insured by a separate, short duration Special Event General Liability insurance policy. Plan for your larger events well in advance and go to National Alliance of Special Events, Inc. to purchase a special event policy in minutes.

23. Field Trip
As with anything else, there is a way to do this activity without being exposed to the liability. Because of a significant bodily injury, abuse, molestation, lack of supervision and automobile exposure, you are advised to fund this activity for the school, making it a school (not a SSG) field trip. The parents may then volunteer to and under the direction of the school to help run the event. Use school buses only for transportation, never private passenger autos.

24. Firearms
Because of a significant bodily injury exposure, you are advised not to sponsor any activities involving firearms or any other potentially lethal weapons.

25. Fireworks/Pyrotechnics
Because of a significant bodily injury exposure, coverage for this activity is excluded (not covered). This includes the use of fireworks, the sale of fireworks, commercial fireworks displays or similar type pyrotechnic display or device, including flash pots, smoke pots and rocketry. Multiple injuries include permanent eye losses, permanent hearing losses, loss of arms, loss of hands, and 1st, 2nd, and 3rd degree burns.

26. Fishing
Although this activity is not excluded, it has produced numerous permanent eye losses with both children and adults. Caution is advised.

27. Foam/Rave Parties
Although this activity is not excluded, it can produce a lawsuit which will not be covered by the policy. These are two types of parties that you do not want you children to attend. Both have a history of injury and the use of drugs.

28. Grad Night
Because of a significant bodily injury exposure, you are advised not to sponsor this activity. Recently, Grad Night parties have become very elaborate and difficult to insure. Short duration Special Event insurance has even become difficult to acquire for Grad Night parties. The injury rate has risen to a point where we advise our SSG clients not to participate in any Grad Night productions. Do not let the Grad Night Committee attempt to attach to your insurance. Should your SSG elect to proceed with this activity, follow these rules to reduce your exposure to a lawsuit:

01. Your Board only should completely control and conduct this activity on school property. Do not let the Grad Night Committee control and use you for you insurance.
02. Make sure every vendor names your SSG and your School District as an Additional Insured on a $1,000,000 General Liability policy.

29. Haunted House
This event should take place on school grounds only. You are advised to appoint a volunteer parent that is an engineer, as the safety committee chairperson. Also, an inspection by the local fire department is a necessity. Poorly planned and constructed Haunted Houses have caught fire, trapping children inside.

30. Hay Ride
This activity has a significant bodily injury exposure. Unfortunately, over the years, this activity has produced several large losses. Most of the trailers used do not have safety rails, which has led to leg injuries. Children and adults have fallen off of the hay ride only to have a leg crushed by a tire. Keep in mind, there is no automobile coverage provided by the policy.

31. Highway/Street Beautification/Clean Up
Because of a significant bodily injury exposure, you are advised not to sponsor this activity.

32. Ice Skating And Roller Skating
This activity is one of the exceptions to the Athletic/Sports exclusion and it is therefore O.K. to sponsor. Follow these rules to reduce your exposure to a lawsuit:

a. This event is held at a local skating rink, or operated by a vendor on school grounds (preferred method). If your SSG uses a local vendor on school grounds (preferred method), be sure that the vendor supplies you with a Certificate Of Liability Insurance for at least $1,000,000 and that it names your SSG and the school district as an Additional Insured.

b. You are advised to notify the parents that there is no medical insurance coverage (only liability coverage) for any type of athletic event, which includes skating. Medical expenses will have to be paid by the vendor, rink owner or the parent.

c. Because of the supervision exposure, this event works best if the parents are required to bring the kids to the rink (when a commercial rink is used), and to stay there during the entire event. If the parents are not on site to supervise, any child that leaves the rink and is injured, will be your responsibility.

d. A Liability Waiver should be signed by all intended adult participants (or in the case of children, their parents) before they are allowed to participate. This Liability Waiver can be obtained from your school district business manager. There is an approximate one in five chance (20%) that someone will be injured while skating at this event. Make sure ahead of time, that the participants and their parents know not to come to your SSG for medical expenses and lost wages

33. Instructional Classes
See Enrichment Programs-Academic

34. Motorized Vehicles
Because of a significant bodily injury exposure, coverage for this activity is excluded (not covered). This activity would include tractor pulls, truck pulls, snowmobiling, etc

35. Moonwalk
Although there is no exclusion for this entertainment device, because of a significant bodily injury exposure, you are advised not to use inflatable devices. This includes Castle Bounce, Astro Walk, Cosmo Walk, Moon Bounce or similar type inflatable bouncing or re-bound device (the vendors keep skillfully changing the name). Multiple injuries include permanent eye losses, broken necks resulting in permanent paralysis, broken backs resulting in permanent paralysis, permanent brain damage, and tooth loss. Should your SSG elect to proceed with this activity, follow these rules to reduce your exposure to a lawsuit:

a. Do not rent this device and operate it yourself;

b. Use a vendor that is able and willing operate the device and to add your SSG and the School District as an Additional Insured on no less than a $1,000,000 liability policy.

36. Overnight Activities
Although this activity is not excluded, you are advised not to sponsor overnight activities. During this entire event, you are responsible for everything that happens to the kids, even if it is their own fault. This activity has proven to produce several large wrongful death lawsuits. If your SSG wants to have this type of activity, let it be a school activity and not a SSG activity. Normally, the school will not agree to sponsor this activity because of the liability exposure.

37. Parade Float
Because of a significant bodily injury exposure, coverage for this activity is excluded (not covered). While marching in a parade is an approved activity, a parade float, much like a Hay Ride, will cause injuries to the participants riding on the float. Also, a parade float has the potential of causing multiple injuries to spectators along the path of the parade. You are advised not to throw any candy or favors into the crowd as this will cause eye injuries. Throwing objects into a crowd is an intentional act, and is therefore, an excluded (not covered) activity.

38. Playground And Other Equipment Or Improvements
In addition to playground equipment, this advisory includes the procurement of any type of school equipment including but not limited to, computers, benches, tables, bike racks, desks, rugs or other furnishings, disaster kits, fencing, landscape, or other area improvements or betterment. These types of equipment or improvements will exist for up to 50 years, as will your liability exposure. You are advised to fund the purchase for the school district, and not to be involved in the purchase or installation of any of these items. Do not purchase these items directly, and then gift them to the school. Instead, give the school or the school district the necessary funds, and let them arrange for the purchase and installation. Make arrangements with the school prior to fund commitment, to make sure that the items will remain at your school. If you are about to make this type of donation, you have the power to negotiate. Use it. Otherwise, you could be surprised to find that a large portion of your donation for equipment has gone to another school within the district. Over the years, SSG has been named in several lawsuits, which resulted from children being injured on SSG purchased and donated playground equipment and area improvements. The attorneys for the injured child have researched the school district records only to find the SSG on the invoice, thereby enjoining the SSG in the lawsuit. This has held true for SSG installations also. If parents desire to be involved in the installation, in an effort to reduce the cost, allow them to volunteer directly to the school, and not through the SSG. Do not identify the installation, in any way as a SSG project. Allow the installation to be a school project; organized, operated, directed, and controlled by a school employee(s). If you do let him/her in and they later leave and get into an accident, you and your leadership will again be sued. If you hold the child against his/her will, you may also be sued for false detention. This activity is better left to the Grad Night Committee, not the SSG. Be sure you do not let the Grad Night Committee use you for your insurance. Make the Grad Night Committee get its own insurance. Do not co-sponsor this event with the Grad Night Committee, as you will be responsible for any loss.

39. Post Prom Party
Much as a Grad Night or overnight event, this activity carries with it a high potential for a lawsuit. If an intoxicated youth shows up at your Lock In Post Prom Party and you do not let him/her in, you and your leadership will be sued. If you do let him/her in and they later leave and get into an accident, you and your leadership will again be sued. If you hold the child against his/her will, you may also be sued for false detention. This activity is better left to the Grad Night Committee, not the SSG. Be sure you do not let the Grad Night Committee use you for your insurance. Make the Grad Night Committee get its own insurance. Do not co-sponsor this event with the Grad Night Committee, as you will be responsible for any loss.

40. Rebound Device
Because of a significant bodily injury exposure, coverage for this activity is excluded (not covered). This activity includes trampoline and other rebound devices. Injuries have been numerous going back into the trampoline craze of the early 1960's. Liability, injury and law suits became such a problem that the Trampoline Centers ultimately became extinct.

41. Rummage Sale
This event should be held on school grounds. You are advised not to sell any used electrical, mechanical or electromechanical devices, nor any new or used flame generating devices, or flammable children's clothing. You are also advised to appoint a volunteer parent that is an engineer, as the safety committee chairperson. Have all items pre-inspected by this safety chairperson and eliminate from the sale, the items that are included within the above mentioned categories, or that are unsafe.

42. Smoke/Foam Generating Device
Because of a fire and a bodily injury exposure, coverage for this activity is excluded (not covered).

43. Street Fair/Circus
Although this not excluded, you are advised not to sponsor this activity. Unlike a school carnival which should take place only on school grounds, this event is likely to involve more of the public and less of the people with kids attending the school. The general public population is much more likely to sue that the school population.

44. Throwing Objects Into Crowd
Because of a significant bodily injury exposure, coverage for this activity is excluded (not covered). If you are marching in a parade or holding a stage play and you throw candy or party favors into the crowd or audience, loss history shows you will cause an eye injury, or in some cases permanent blindness.

45. Transportation
You are advised not to transport anyone in private passenger automobiles. Use instead, chartered bus services from the school district. The school district bus service will have adequate insurance coverage and liability limits. You do not have any type of automobile liability insurance coverage whatsoever.

46. Walk-A-Thon Or Jog-A-Thon
This activity is one of the exceptions to the Athletic/Sports exclusion and it is therefore O.K. to sponsor. Follow these rules to reduce your exposure to a lawsuit:

a. This event must be held on school grounds.

b. Do not to allow the parents to participate, except on a support basis, such as handing out fruit juice or counting laps. The parents are usually the ones to be injured at this event.

c. Notify the parents, in writing, that there is no medical insurance (only liability) coverage for any type of athletic event, which includes Walk or Jog-A-Thon. Medical expenses will have to be paid by the parent or the school district.

d. A Release Form or Liability Waiver is in order with this event, which is usually available from your school district business manager. Also, ask the school to offer the parents Student Accident Insurance well in advance of this event.

47. Water Activities or Events
Because of a significant bodily injury exposure, coverage for this activity is excluded (not covered).  This activity includes swimming, water sports and watercraft, all of which not covered by the policy.  Historically, water activities or events have caused several large bodily injury lawsuits.  Steer clear of these activities whenever possible.

 

COVERAGE II BONDING PLUS
A. Leadership Personal Financial Responsibility
A SSG may operate on extremely limited capital and sufficient internal controls are sometimes lacking.  In addition, SSG money is often kept in private homes overnight.  Because of these conditions, group moneys derived from dues and fundraising activities, are exposed to loss by dishonesty, forgery, alteration, theft, disappearance or destruction.  When a money or financial loss does occur (about 8 times each week), which is all too often, it is not unreasonable for the general membership to expect SSG leadership, in the absence of insurance, to personally fund the loss.  A SSG and itsí leadership can either retain this exposure to financial loss and self-insure (not advisable), or transfer this exposure to another through the use of crime insurance, also known as Bonding Plus.

B. Who Is Insured
Bonding Plus is available to any qualifying SSG.

C. What Is Insured
This policy has three coverage's, each with a separate, per loss limit. The definition of employee has been enhanced to include any elected officer, committee chairperson (whether elected or appointed), or any member of the organization acting as a volunteer. There is no limit to the number of individuals or positions covered by this policy provided they are included within the definition of employee, as previously defined. A brief description of the coverage follows.
01. Employee Dishonesty
Provides protection (up to the selected limit less the deductible) for the loss of money, securities and other property resulting directly from one or more fraudulent or dishonest acts committed by an employee (as defined above) acting alone or in collusion with others.
02. Forgery Or Alteration
Provides protection (up to the selected limit less the deductible) for loss resulting from forgery or alteration of outgoing checks, drafts, promissory notes and similar instruments drawn against the Insured's accounts.
03. Theft Disappearance And Destruction
Provides protection for loss resulting from the causes of loss described in its title. This coverage is divided into two parts, each with its own separate per loss limit.

a. Part A Loss Inside The Premises
Provides protection (up to the selected limit less the deductible) for the loss of money and securities by the actual destruction, disappearance or wrongful abstraction thereof, within the premises.

b. Part B Loss Outside The Premises
Provides protection (up to the selected limit less the deductible) for the loss of money and securities by the actual destruction, disappearance or wrongful abstraction thereof, outside the premises while being conveyed by a messenger, or while within the living quarters in the home of any messenger.

D. Where Coverage Is Applicable
The geographic limitation of almost any insurance contract is described by its policy territory. The territory of this particular policy varies with its' three coverage's, but in each instance does include any of the States of the United States of America, the District of Columbia, the U.S. Virgin Islands, Puerto Rico, the Canal Zone and Canada. Contact R.V. Nuccio & Associates, Inc. for specific territory interpretations.

E. When Coverage Is Applicable
A qualifying SSG may purchase annual coverage at any time.

F. What Is Excluded
This program has specific exclusion usual to this form of crime insurance. It must be understood that this booklet is only a summary. It is not all inclusive, not does it alter or waive any of the actual policy language. Questions regarding these exclusions or this summary, should be directed to R.V. Nuccio & Associates, Inc. There is NO coverage, or coverage is excluded for:

01. Losses, the proof of which is dependent upon an inventory or profit and loss computation.

02. Losses due to war, whether declared or not, war like action, civil war, insurrection, rebellion or revolution, or any related act or incident.

03. Losses due to accounting or arithmetical errors or omissions.

04. Moneys in coin-operated vending machines or amusement devices.

05. Losses to property in an armored vehicle or messenger service.

06. Losses (except money or securities) due to fire.

07. Losses resulting from extortion.

08. Losses resulting from the use or sale of supermarket scrip or any type of paper representing money.

09. Interest, dividends, or other income resulting from a money loss.

10. Damages of any type for which the insured is legally liable. Legal expenses are also excluded.

11. Costs, fees, and other expenses incurred by the insured in establishing the existence of or amount of a loss covered under this policy.

G. Incident Reporting And Claims Handling
A standardized Proof Of Loss form is provided upon request. When a loss is discovered, the form is completed confidentially, by an officer of the organization and mailed directly to R.V. Nuccio & Associates, Inc. Leadership is responsible for filing a Proof Of Loss form within four months after the discovery of a loss, or of an occurrence which may give rise to a claim for a loss. A SSG money loss can easily lead to a slander lawsuit if not handled properly. Do NOT make any accusations, neither verbally nor in writing, and instruct your Board accordingly. Contact R.V. Nuccio & Associates, Inc. for guidance before you say anything to anyone.

H. Specific Requirements
Bonding Plus contains specific leadership compliance requirements known as the RVNA Warranty System, which acts to increase financial control, and to reduce exposure to financial loss. This system is NOT optional and forms a part of the actual insurance contract. Violation of a Bonding Plus warrant, negates Bonding Plus coverage. Group leadership warrants that the following procedures will be installed and continuously maintained.

01. There will be dual, unrelated signatures required on all outgoing checks.

02. There will be no pre-signing of blank checks.

03. There will be a monthly bank reconciliation (re-balancing of the checkbook) performed by an organization officer (such as the President or Vice President) other than that officer (usually the Treasurer) normally responsible for banking functions. (This warrant forces discovery of deposits that have not been made, from accumulating over a period of months or years.)

I. Cancellation Of Coverage For A Specific Employee(s)
The employee dishonesty coverage contains a condition that immediately cancels any future coverage for any employee (as previously defined) upon discovery by the Insured, or an officer or director, of any dishonest act committed by that employee, either before or after becoming an employee of the insured SSG. This condition is common to this type of coverage. Coverage is also excluded for any employee for whom similar prior insurance has been canceled.

J. Safety Tips
01. After a fundraiser, do all in your power to make a deposit at the bank. Do not go alone, or ask your local law enforcement agency to escort you to the bank. You must always assume that someone will follow you. This procedure is for your protection as a messenger, as several robberies have occurred with resulting bodily harm to the messenger.

02. Do not place your deposits in the trunk of your car, and then leave the car unattended to pick up items at a local store. You must assume that someone will follow you. The deposit will not be there upon your return to your damaged vehicle. Go directly to the bank.

03. If, for some reason, you are not able to deposit directly to the bank, do not take the money home, and then go out for dinner. You must assume that someone will follow you. This will expose your children to bodily harm from a burglary. Also, make the deposit the very next day. Do not leave the deposit in the closet, in a shoe box, in your home, any longer that absolutely necessary. Cash has a strange way of disappearing over time.

04. Leadership is responsible for checking with the person designated to make the deposit (the messenger), to be sure that the deposit has been made, at the very latest, the next day. An officer, other than the messenger, should know the amount of the deposit, and should verify that the deposit has been made by checking the bank statement for that month (see warrant number 03).

 

COVERAGE III PROPERTY PLUS
A. SSG Owned Property
A SSG will sometimes own miscellaneous property used in the operation. Just as you would protect your own personal or business property with property insurance, you would likewise protect SSG property. It is the responsibility of leadership to see that this property is properly insured against loss due to fire, lightning, windstorm, theft, earthquake, vandalism, and other perils. A SSG and its' leadership can either retain this exposure to property loss and self-insure (not advisable), or transfer this exposure to another through the use of inland marine property insurance.

B. Who Is Insured
Property Plus is available to any qualifying SSG.

C. What Is Insured
Property Plus is a customized type of floater property coverage. It insures the types of property listed below up to the specified value, against all risks of direct physical damage from any external cause, except those that are specifically excluded. This coverage is provided on a replacement cost basis (new for old), and contains a $500 per loss deductible. Following is a list of some of the items which can be insured by Property Plus. Of course this list is not all inclusive, so contact R.V. Nuccio & Associates, Inc. for guidance regarding items not mentioned.

01. Adding Machines
02. Audio Recorders
03. Audio Tape Library
04. Audiovisual Equipment
05. Book Library
06. Cameras
07. Carnival Booths
08. Carnival Equipment
09. Coffee Makers
10. Coin And Stamp Collections
11. Computers
12. Copiers
13. Film Library
14. Film Projectors
15. Fine Arts
16. Items loaned to SSG
17. Jewelry For Sale by SSG
18. Musical Instruments Owned Or Rented
19. Office Equipment
20. Other Items/Stock Held For Sale
21. Overhead Projectors
22. Posters And Signs
23. Printers
24. SSG Meeting Equipment
25. Puppets
26. Record Library
27. Sports Equipment
28. Stocks Of Printed Material For Sale
29. Storage Containers
30. Tables And Chairs
31. Telephone Equipment
32. Theatrical Props
33. Typewriters
34. Video Library
35. Video Recorders
36. Uniforms And Costumes

D. Where Coverage Is Applicable
The geographic limitation of almost any insurance contract is described by its policy territory. The territory of this particular policy is within the 48 contiguous states of the United States of America, the District of Columbia, and within the states of Alaska and Hawaii. Coverage is provided for qualifying property wherever that property may be located, provided the listed property is within the policy territory.

E. When Coverage Is Applicable
A qualifying SSG may purchase annual coverage at any time.

F. What Is Excluded
This program has specific exclusions usual to this form of property insurance. It must be understood that this booklet is only a summary. It is not all inclusive, nor does it alter or waive any of the actual policy language. Questions regarding these exclusions, or this summary, should be directed to R.V. Nuccio & Associates, Inc. There is NO coverage, or coverage is excluded for:

01. Property not specifically and properly listed and submitted at the time of application.

02. Losses greater than the replacement value of the property.

03. Losses greater than the limit of insurance assigned to an item and listed on the application.

04. Loss or damage caused by, or made worse by deterioration, inherent vice or latent defect.

05. Loss or damage caused by, or made worse by wear and tear.

06. Loss or damage caused by, or made worse by seizure or destruction of property by order of governmental authority.

07. Loss or damage caused by, or made worse by any weapon employing atomic fission or fusion or nuclear reaction or radiation, radioactive contamination, however caused.

08. Loss or damage caused by, or made worse by war, including undeclared or civil war.

09. Loss or damage caused by, or made worse by insurrection, rebellion, revolution, usurped power or action taken by governmental authority in hindering or defending against any of these.

10. Loss or damage caused by, or made worse by illegal transportation or trade.

11. Loss or damage caused by, or made worse by a dishonest act of an employee (see Bonding Plus).

12. Loss or damage caused by, or made worse by the neglect of the insured to reasonable protect the property from a disaster or neighboring fire.

13. Loss or damage caused by flood.

14. Loss or damage to fine arts caused by, or made worse by:

a. repairing, restoration or retouching

b. breakage of art glass windows, statuary, marbles, glassware, bric-a-brac, porcelains, and similar fragile articles, unless caused by fire, lightning, aircraft, theft, etc.

c. exhibition at fair grounds or on the premises of any national or international exposition, unless such event is covered by endorsement to this policy.

G. Claims Handling
A standardized Proof Of Loss form is provided upon request. When a loss is discovered, the form is completed by an officer of the organization and mailed directly to R.V. Nuccio & Associates, Inc.

H. Listing Items And Values
It is essential that all items to be insured are specifically and individually listed on the application, with replacement value (not actual cash value) assigned to each. Replacement value is what you would pay today for a brand new item. It is not necessarily what you paid when you originally bought the item.

 

COVERAGE IV DIRECTORS & OFFICERS LIABILITY PLUS

A. Directors & Officers Liability (D&O)

Directors & Officers Liability is sometimes referred to as D&O, Association Professional Liability, management malpractice or as in this case, Directors & Officers Liability Plus. D&O picks up where Commercial General Liability (known within this booklet as Liability Plus) leaves off. Each coverage provides defense and judgment insurance protection for a different set of third party liability claims or exposures. Said another way, D&O excludes that which is normally covered by a Commercial General Liability policy such as Liability Plus, and Liability Plus excludes that which is normally covered by a D&O policy such as Directors & Officers Liability Plus. Whereas Liability Plus provides third party liability insurance protection for covered losses resulting from an actual or alleged Bodily Injury, Property Damage, Personal Injury or Advertising Injury, Directors & Officers Liability Plus provides third party liability insurance protection for covered losses resulting from an actual or alleged error or omission, misleading statement or breach of duty.

B. Who Is Insured
Directors & Officers Liability Plus is available to any School Support Group, PTO or Booster Club wishing to purchase this D&O liability protection. The following are Insureds under the policy:

01. The School Support Group, PTO or Booster Club as an entity.

02. Any:

a. Director; or
b. Officer; or
c. Trustee; or
d. Employee; or
e. Volunteer; or

03. The estates and lawful spouses of those individuals mentioned in number 2 above.

C. What Is Insured
The policy provides (subject to policy language) Claims Made Directors & Officers Liability insurance protection up to $1,000,000/$1,000,000 per occurrence/annual aggregate. Policy highlights include:

01. Wrongful Act coverage including:

a. error or omission
b. negligent act
c. misleading statement
d. breach of duty

02. Employment Practices Liability coverage

03. Separate limit per SSG, PTO or Booster Club (limit not shared with other Groups)

D. Where Coverage Is Applicable
The geographic limitation of almost any insurance contract is described by its policy territory. The territory of this particular policy is worldwide provided that the suit or proceedings are brought within the United States, including its territories and possessions, or Canada.

E. When Coverage Is Applicable
The time limitation of almost any insurance contract is defined by its inception and expiration date and time at some specific location. This limitation is also known as the policy period, which in this instance is one year.

F. What Is Excluded
This program has specific exclusions usual to this form of Claims Made Directors & Officers Liability insurance. It must be understood that this booklet is only a summary. It is not all inclusive, nor does it alter or waive any of the actual policy language. Questions regarding these exclusions or this summary, should be directed to R.V. Nuccio & Associates, Inc.

There is NO coverage, or coverage is excluded for loss or claims arising out of :
01. Unjust enrichment, obtaining profit or advantage to which the Insured was not entitled.
02. Any criminal, malicious, fraudulent, knowingly wrongful, or dishonest act or omission.
03. Bodily Injury (see Liability Plus)
04. Property Damage (see Liability Plus)
05. Personal Injury (see Liability Plus)
06. Year 2000 computer failure
07. Nuclear exposures
08. Pollution exposures
09. Securities Exchange Commission exposures
10. Employee Benefit plans
11. Government grants

G. Incident Reporting And Claims Handling
Directors & Officers Liability Plus is written on a Claims Made policy form. It is not Occurrence policy form coverage. The coverage trigger is based upon the claim report date and not the date of incident. It is extremely important that any claim, incident, loss, suit or threat or hint of any of these be reported immediately to R.V. Nuccio & Associates, Inc. before you talk to anyone. Call 1-800-567-2685.

H. How To Obtain Directors & Officers Liability Plus
Complete the Enrollment Form

 

COVERAGE V ACCIDENT MEDICAL PLUS

A. Accident Medical

Accident Medical Plus is medical expense insurance which will sometimes help to avoid a lawsuit. The theory is that if their medical expenses are paid, an injured person will not sue. The Accident Medical Plus provides insurance coverage for out-of-pocket medical expenses resulting from an accident at a sponsored activity or event. Accident Medical Plus coverage was designed as a supplement to and not a replacement for Liability Plus, as it will cover certain medical expense claims which are not covered by the Liability Plus. Members, volunteers, spectators and participants have come to expect their medical expenses to be paid by the organization in the event of an accident. Liability Plus and Accident Medical Plus in combination provide the broadest coverage available.

B. Who Is Insured
Anyone injured while attending a covered sponsored supervised organization activity or event.

C. What Is Insured
Coverage is provided for medical expenses incurred up to the selected limit while attending an organization sponsored activity or event.

D. Where Coverage Is Applicable
The geographic limitation of almost any insurance contract is described by its policy territory. The territory of this particular policy is the United States.

E. When Coverage Is Applicable
The time limitation of almost any insurance contract is defined by its inception and expiration date and time at some specific location. This limitation is also known as the policy period, which in this instance is one year.

F. What Is Excluded
This program has specific exclusions usual to this form of Accident Medical insurance. It must be understood that this booklet is only a summary. It is not all inclusive, nor does it alter or waive any of the actual policy language. Questions regarding these exclusions or this summary, should be directed to R.V. Nuccio & Associates, Inc.

There is NO coverage, or coverage is excluded for loss or claims arising out of:
01. Suicide, suicide attempt or self-inflicted injury;
02. Sickness, disease or infections;
03. Criminal activity;
04. War;
05. Military duty;
06. Intoxicants;
07. Drugs unless taken under the advice of a Physician;
08. Aircraft;
09. Stroke;
10. Losses covered by other insurance;
11. Speed contests; and,
12. Any type or kind of sport or athletic activity.

G. Incident Reporting And Claims Handling
It is extremely important that any claim, incident, loss, suit or threat or hint of any of these be reported immediately to R.V. Nuccio & Associates, Inc. before you talk to anyone. Call 1-800-567-2685.

H. How To Obtain Accident Medical Plus
Complete the Enrollment Form

IMPORTANT NOTES:
1. This Coverage Summary is only a summary. It is not all inclusive, nor does it alter or waive any of the actual policy language. Questions regarding this summary should be directed to R.V. Nuccio & Associates, Inc. at 1-800-567-2685
2. Any pricing information contained within this booklet is subject to change without notice.
3. The underwriter and/or the Program Administrator reserve the right to accept or reject any application for insurance.
4. Coverage will not be effective and a Certificate Of Insurance will not be issued until the full and correct payment has been received by R.V. Nuccio & Associates, Inc.
5. Any person who, with intent to defraud or knowing that he is facilitating a fraud against an insurer, submits an application or files a claim containing a false or deceptive statement is guilty of insurance fraud.

Exclusive National Program Administrator:
R.V. Nuccio & Associates, Inc.
10148 Riverside Drive
Toluca Lake, CA 91602
1-800-567-2685 Phone
1-818-980-1595 Fax

Insured By:
FIREMANíS FUND INSURANCE COMPANY

3/8/2008
NANPO107C

© Copyright 2008. All rights reserved. R.V. Nuccio & Associates Insurance Brokers, Inc. 1-800-567-2685
R.V. NUCCIO & ASSOCIATES, INC. 10148 RIVERSIDE DR. TOLUCA LAKE CA 91602 1-800-567-2685

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