General Liability

PTA fundraising activities can expose third parties to potential injury during PTA sponsored events. In addition, any time parents, teachers or children attend at meeting or function, the location or actual site where the meeting or function is being held (such as the school) may waive liability for injured parties while on their property. Further, if school property is damaged during an event, the school may hold the PTA liable for repairs. This coverage is called Premises Liability and is included in the General Liability Portion of the PTA Insurance Program. Another coverage within the General Liability policy, which the PTA may find valuable, is the coverage for libel and slander. Should a PTA official render an opinion concerning an individual either publicly during a meeting, or in private, which improperly defames that person's character and a defamation claim is brought against the PTA, then the libel and slander coverage would apply.

Fidelity Bond

Now that you have safely raised funds on behalf of you PTA, you have a responsibility to protect those funds. This should be done through the purchase of fidelity bond insurance. Several members of your board may be involved in the handling of these funds. Whether it is cash, checks, or other securities, these funds could easily be stolen or improperly deposited into their own personal account. Typically, this type of situation occurs when a trusted member of the PTA simply "borrows" the money for "just a little while" until they get their personal finances squared away and then "will just pay it right back". Unfortunately, the money is never seen again. A fidelity bond is also called Employee Dishonesty Coverage. It does just as the name implies; it provides the insurance needed to protect the monies the PTA members have worked so hard to earn from well meaning but dishonest volunteers.

Officers Coverage - Directors and Officers

Individual directors and officers serving as PTA board members and those acting upon their directive are prime candidates for directors and officers coverage. Some of the basic coverage include Legal Actions & Allegations of Mismanagement, Misappropriation of Funds, Misrepresentation, Dissemination of False or Misleading Information and Wrongful Acts. These professional liability exposures are covered when a notice of claim is filed or received. D&O coverage provide the extra piece of protection to insure the safe management and smooth direction of your PTA.

Coverage:
Having insurance does not mean that every activity the unit undertakes will be covered. There may be exclusions within your policy that prohibits or restricts certain types of activities. DO NOT ASSUME YOUR UNIT IS COVERED FOR ALL ACTIVITIES. Contact your insurance carrier and obtain an “Insurance Program Summary and Loss Control Guide”.

THE TIME TO ASK QUESTIONS IS BEFORE THE EVENT OR ACTIVITY.

Insurance Provider Selected by VA PTA - Nuccio & Associates

The Virginia PTA selected a company to recommend to local units that participates in a national insurance program specifically designed for the business of PTA and insured by Fireman's Fund, one of the nation's oldest and most respected insurance companies.

This program, used by 22 other state PTAs, has existed for over 26 years and is exclusively administered nationally by R. V. Nuccio & Associates, Inc. We believe this program will provide the insurance coverage to meet our needs, however you have the right to secure insurance from any other carrier.

Go to Membership Library for
additional Coverage Information. Download the form.

Certificate of Insurance

A PTA will sometimes have a tendency to rely upon school district liability insurance for protection. This generally proves to be untrue. If a PTA is covered by school district insurance, they should obtain a “Certificate of Insurance” as documentation for PTA files.

When using vendors at activities that provide rides and similar activities, ALWAYS OBTAIN A “CERTIFICATE OF INSURANCE” FROM THE VENDOR VERIFYING THEIR INSURANCE COVERAGE. This “Certificate of Insurance” covers the vendor—IT DOES NOT COVER THE PTA.