Insurance FAQs

Why does my PTA need insurance?

The number one question that most PTA state board’s face today is "Why does my PTA need insurance?" That’s a great question and one that every PTA should ask itself as an association. There are many misconceptions about insurance when it comes to PTAs. Did you know that you, as an individual member of the PTA or an officer of the PTA could be held personally liable for an accident that occurs at one of your events? Personal Liability means that your personal assets could be at risk if you were sued because of something that happened at one of your PTA events. Are you willing to put your checking account, your savings account, possibly your 401k or even your assets at risk for your PTA? 

Insurance not only protects your PTA, but also protects you as an individual; especially when there is limited coverage through your homeowner’s insurance. Your school’s liability insurance does NOT cover you and your board should an issue arise at your school.  The Risk Management Guide  will walk you through the risks that you are exposed to as a PTA, ways to reduce that liability, and how insurance policies can protect your PTA and PTA members should something happen at one of your events.


The following items are included with your insurance policy:

Bonding Insurance

A fidelity bond covers losses sustained by a PTA through any fraudulent or dishonest act or acts committed by any of the employees or non compensated elected officers and their successors or any non compensated person who is authorized by an officer to handle PTA monies acting alone or in conspiracy with others. 

Commercial General Liability

Commercial general liability insurance provides coverage for a PTA’s legal liability arising from bodily injury, personal injury (false arrest, libel, slander, and other defined injuries), advertising injury, and property damage that results from the PTA’s activities and operations. Generally speaking, school district liability insurance does not extend to PTAs or their activities.

Directors and Officers Liability

Directors and officers (D&O) liability insurance provides protection for claims arising out of the wrongful acts of directors and officers (in making policy and managing the affairs of the unit) that do not fall under the definition of physical injury. Examples of D&O liability claims include:

• Discrimination based on age, sex, race, national origin, disability, etc.

• Improper employment termination

• Breach of contract, e.g., contract disputes with customers, vendors, suppliers, or service providers

• Mismanagement of association funds

D&O liability insurance may provide coverage for the defense costs resulting from covered claims.

This policy would cost outside organizations at least $1000 annually. With our group policy through AIM, our charters enjoy this policy at just $165/year. 

For any questions on Insurance Coverage or to purchase additional coverage beyond the basic policy, contact AIM at (800)-876-4044 or visit AIM's website at

© Arizona PTA 2016