Does a PTA or PTO need insurance?
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Short answer: A PTA, PTO or booster club that runs events should carry its own insurance, because school district policies usually don't cover parent groups. Some state PTAs require their units to carry it, and schools and venues often ask for proof before an event. Ask your district what it covers and what limits it expects from you.
| Coverage | What it’s for |
|---|---|
| General liability | Injuries at your events |
| Officers’ liability (D&O) | Decisions the board makes |
| Crime or fidelity | Theft or loss of the group’s money |
| Property | Things you own or hold, such as equipment and donated auction or raffle prizes |
| Event extras | Inflatables, sports or fireworks, which some policies leave out unless you add them |
Do booster clubs need insurance?
The same reasoning applies. A booster club, like a school PTO, isn't part of a state PTA program, so it buys its own policy, for example through a local agent. Before you assume you're covered by the school, ask the district directly. Ask too:
- What coverage limits does the district, school or venue expect?
- Does it want to be named on your policy as an "additional insured" (an extra party the policy protects)?
- Will it need a certificate of insurance before an event? Your insurer can usually send one free.
Booster club liability insurance
General liability is the coverage for injuries at events, and it's the one schools and venues usually ask about. Read what it leaves out. Some policies exclude inflatables, sports or fireworks unless you add them, which matters for a group built around a team. Before any big event, such as a carnival, a tournament or anything with inflatables, ask your insurer whether you're covered.
Crime or fidelity coverage protects against theft or loss of money. Check that it covers the payment apps you use; Utah PTA, for example, notes that its program's bond doesn't cover losses through person-to-person apps. See can a PTA use Venmo?
PTA insurance policy
PTA units can often buy coverage through their state PTA's insurance program, and some state PTAs require it. Texas PTA's insurance page is one example of what a state program offers. Ask your state PTA whether coverage is required, what it includes and whether you need to show proof each year.
What to check at renewal
- Start the new policy the day the old one ends, so there's no gap.
- Check it covers the kinds of events you run and the places you hold them.
- Put the renewal date in your calendar. It's on the policy's first page.
- File the policy with your records, where the next treasurer can find it.
State registrations to check
Insurance is one of a few once-a-year items. Depending on your state, there may also be a charity registration, an annual report if you're incorporated, a state tax filing or a raffle permit. Many states exempt PTAs or small groups from some of these, so ask your state PTA or your state's charity office which apply to you.
To see whether your state requires charity registration, start with NASCO's state registration map. It doesn't say whether PTAs or PTOs are exempt, so confirm with the state.
A state filing can sit on top of the IRS one.
Questions people ask
Does the school’s insurance cover our PTO?
Usually not. District policies usually don’t cover parent groups, so ask the district and note the date and the answer.
Do we need special coverage for a carnival?
Maybe. Ask your insurer before the event, especially for inflatables, sports or fireworks, which some policies leave out.
Are donated raffle prizes covered?
Only if your policy includes property coverage for things you hold. Check before you collect them.
Next step: put the policy, renewal date and registrations in your PTA treasurer binder so next year's treasurer has them.