Why does my PTA need insurance?
The number one question that most PTAs face today is "Why does my PTA need insurance?" That’s a great question and one that every PTA should ask itself as an organization. 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. This 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.
YOUR PTA INSURANCE
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 noncompensated elected officers and their successors or any noncompensated person who is authorized by an officer to handle PTA monies acting alone or in conspiracy with others.
General
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
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.
Visit AIM's website at www.aim-companies.com
The newest feature of their site allows you to have control over your own policy. Through this page, you can sign in with a user name and password to view what coverages you have, print your own Certificate of Insurance, print your renewals, add coverage, request an additional insured and many more features.
Also available are resources that are always available such as the risk management guide, covered/excluded events lists, and copies of polices which you can find on this page as well.
Insurance payment is due by June 1, send form below with payment to AZ PTA office at 2721 N 7th Ave, Phoenix, Arizona 85007 For any questions on Insurance Coverage contact AIM at (800)-876-4044 or contact Arizona PTA at email office@azpta.org
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