Insurance and Liability

Your state PTA and bylaws will have information about what types of insurance your PTA is required to carry. Even if not required, PTAs may want to consider fidelity bonds and liability insurance.

Fidelity Bonds

A fidelity bond covers losses sustained by a PTA through fraud or dishonesty committed by an employee, elected officer, or any person authorized by an officer to handle PTA funds. A fidelity bond is in the best interest of the PTA and should be secured from a reliable insurance company, in an amount to be determined by your board. The cost of this insurance should be covered by the PTA.

Liability Insurance

Your PTA should consider liability insurance when there are projects or activities that may result in potential hazard for PTA members, students or other third parties. The following are three types of liability insurance:

  • 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. This insurance coverage may be purchased either on a continuous, year-round, comprehensive coverage basis, or on a one-time basis for special events. Generally speaking, school district liability insurance does not extend to PTAs or their activities.
  • Auto liability insurance should be secured before transporting students in private vehicles. PTA and/or school district policies may cover the liability of parent drivers while on field trips or other school activities.
  • Directors and Officers (D&O) liability insurance provides protection for claims arising out of the wrongful acts of board of directors and officers in making policy and managing the affairs of the PTA that do not fall under the definition of physical injury. D&O liability insurance may provide coverage for the defense costs resulting from covered claims. 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 vendors, suppliers or service providers)
    • Mismanagement of association funds