PTO/BOOSTER CLUB/SCHOOL SUPPORT GROUP INSURANCE 101

What is the coverage territory of this policy?
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.

Why does our PTO/Booster Club or SSG need Liability Insurance?
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. For more details view the Coverage Summary and Loss Control Guide.

Aren't we covered under the School District Liability policy?
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.

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.
For more details view the Coverage Summary and Loss Control Guide.

What type of events are covered under Liability Insurance?
We provide a list of common activities and the loss control methods in the Coverage Summary and Loss Control Guide.

Why does our SSG need Bonding/Crime insurance?
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.
For more details view the Coverage Summary and Loss Control Guide.

Why is Property Insurance necessary?
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.
For more details view the Coverage Summary and Loss Control Guide.

What is an Additional Insured Certificate?
Occasionally, someone will ask that they be added to your General Liability insurance policy as an Additional Insured, or that they be named as an Additional Insured onto your General Liability insurance policy. This usually occurs when you are having some type of meeting or event in a building or upon property that your School Support Group (SSG) does not own, such as a school, bank or community center. This school, bank or community center is known as the facility. In the case of an SSG such as a PTO or Booster Club, the facility is
most often a school, which is operated by a School District.

The practice of a facility requiring that they be named as an Additional Insured on a $1,000,000 General Liability insurance policy by all persons or entities renting or using the site, is quite common. This insurance industry practice is a well known and proven method of Loss Control or Risk Transfer from the standpoint and to the benefit of the facility. It is so common that the Additional Insured wording is usually contained within the insurance requirement section of the Facility Rental Agreement or Facility Use Agreement. It is important that when you complete this request form, that you get this Additional Insurance wording exactly correct. Otherwise, the facility will not accept the Additional Insurance Certificate that we provide to you which, in turn, you provide to the facility as proof of insurance. Please, get it right the first time.
For more details view the Coverage Summary and Loss Control Guide.

Download Additional Insured Certificate Request

Why do we need Accident Medical Insurance?
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.

Why might we need Directors and Officers Liability Insurance?
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.


For more details view the Coverage Summary and Loss Control Guide.

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