Maryland Parent Teacher Organization Insurance Policy Information
Maryland Parent Teacher Organization Insurance. Charities are subject to the same level of scrutiny and bureaucracy as commercial businesses. Just like company directors, trustees and parent teacher organization managers are legally responsible for their parent teacher organization's activities; from finance to health and safety, volunteers' welfare, to the promises a parent teacher organization makes.
Parent-teacher organizations (PTO) or associations (PTA) are designed to promote the involvement of parents and families in the school system in which their children are being educated. Joint membership of teachers and families within the organization provides a forum for discussion of school policies and reform, as well as funding for special school projects. Some parent-teacher organizations operate concession stands at athletic events while others may be responsible for the social activities of students. Financial backing is through membership dues, fundraisers, and donations.
Parent-teacher organizations (PTOs) are a staple and essential part of any school. They host wonderful events for students and parents that really bring the entire community together. If you're the head of a PTO, there's no doubt that you spend a lot of your time organizing and planning all of the picnics, breakfasts, book fairs, and other events that you host.
In all your planning, you likely consider things that could go wrong and make accommodations for mishaps; however, you might not think much about the need for Maryland parent teacher organization insurance coverage - but you really need to. There are definite risks associated with a PTO that could put you, other members, the school, and anyone else who is involved with the organization in jeopardy of legal trouble.
Maryland parent teacher organization insurance (PTO) protects your association from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
Why Insurance is Important For A PTO
Like any other event that brings people together, there are several potential issues that could arise. A volunteer could fall off of a ladder while setting up a display, a carnival game could malfunction and injury a child, or someone's personal property could be damaged or stolen, for example. In the event that the unthinkable happens, you could be held legally responsible for the damages. Someone could file a lawsuit against your organization and you, personally, which could end up putting you in financially ruin.
In order to protect yourself from peril, having the right Maryland parent teacher organization insurance in place is absolutely essential for a parent-teacher organization. In the event that something does go wrong and someone takes legal action, your insurance coverage will help to pay for the cost of damages, as well as defense fees.
What Types Of Insurance Should MD Parent-Teacher Organizations Carry?
There are several types of insurance coverage that a MD PTO should have in place. Below, we'll highlight some of the most basic types of Maryland parent teacher organization insurance policies that you should invest in:
- General Liability - This is the most basic type of insurance coverage that a PTO should carry. It protect you from any lawsuits that may be filed against your organization in the event that someone is injured or if someone's property is damaged. For example, should a student sustain an injury as a result of a faulty game at a carnival or if a shelf collapses on someone at a book fair, general liability insurance will help to cover the cost of any injuries and legal defense fees.
- Professional Liability - Also known as errors & omissions insurance (E&O), this type of coverage protects the board members of a parent-teacher organization from any wrongful acts legal suits that may be filed. For instance, if a parent sued your organization, claiming that the charitable funds that were raised were spent inappropriately, or if someone filed a claim stating that you misrepresented the school or the PTO, professional liability coverage would help to pay for your legal defense fees. In the event that you are required to pay out any damages, an E&O policy would also help with the cost.
- Commercial Property - You may not need to have property insurance for the school or wherever else you may be hosting an event, as these institutions should have their own property insurance policies in place. However, you should consider investing in a policy that will protect any property that is related to the PTO; items that you may be auctioning off or selling, supplies that you've collected for fundraisers, and gifts that have been donated for raffles, supplies for your school store, audio visual and entertainment equipment (TVs, popcorn makers, stereos, etc). A property insurance policy will cover any property that is related to the PTO in the event that it is stolen, lost, or damaged.
- Bonding - As a parent-teacher organization, you rely on funds to make all of those wonderful events that you host a reality. It's important to carry bond insurance, as it will protect your organization in the event that someone steals your funds. For instance, if the treasurer of your PTO, someone who volunteers to help with an event, or a vendor that you are working without embezzles your money, bond insurance would help to replace the stolen funds.
These are just some of the types of Maryland parent teacher organization insurance policies that parent-teacher organizations should consider investing in. With these policies in place, you can protect yourself, the members of your PTO, and the entire organization from any mishaps that may arise.
How Much Coverage Should MY PTO Have?
The amount of coverage you should carry for each policy depends on a variety of factors. The size or your PTO, the amount of funding you have, and the types of events that you host are just some of the factors that should be taken into consideration when determining how much coverage you should have for each Maryland parent teacher organization insurance policy.
MD PTO's Risks & Exposures
Premises liability exposure is limited since activities take place on school property with full permission of the school. However, while the statute of sovereign immunity may apply to the schools, that same protection may not apply to activities conducted by the parent-teacher association. Any fundraiser must be evaluated based on the potential for injuries.
If services are provided by outside contractors, certificates of insurance must be obtained and maintained. Ownership for any items bought for the school, such as playground or sports equipment, should be immediately transferred to the school to eliminate liability for injuries.
Directors and officers exposure could be moderate due to activities sponsored by the association. Policies and procedures should be published and consistently followed, especially as they relate to membership, membership revocation, the election of officers, and removal of officers.
Property exposure is generally nonexistent because the group does not own anything. Most groups that purchase items for use in the schools pass ownership on to the school immediately upon purchase. If ownership is retained, storage and security of items should be reviewed.
Crime exposure is from employee dishonesty and theft of money and securities from dues and the money collected at fundraisers. As parent-teacher associations have no employees, coverage for volunteers and committee persons must be included. Parent-teacher associations are unlikely to perform background checks on members handling money.
Precautions against theft include having more than one person attending the cash drawer at all times and a separation of duties between persons handling money and reconciling bank statements. Money should be regularly collected and moved away from the collection area, preferably to a safe. Regular deposits must be made to prevent a large buildup of cash.
Inland marine exposure is generally nonexistent since most items are immediately transferred to the schools for their use. However, if the group keeps equipment to be used for fundraisers such as popcorn machines, games, and other mobile items, they should be insured using a special or miscellaneous floater.
Commercial auto exposure is limited to hired and non-owned automobile for members running errands on behalf of the association.
MD Parent Teacher Organization Insurance
To find out more about insurance options for your MD PTO, speak with a reputable insurance broker to learn about the business insurance options available.
Maryland Economic Data And Business Insurance Regulations
Business owners that have their sights set on Maryland should to take a number of factors into consideration before the set up shop; namely, they need to determine if the state offers favorable for business owners in general, as well as their specific industry. After all, it doesn't matter how top-notch the products and services a business offers may be, if the location isn't favorable for the industry - and businesses, in general - the operation is going to have a hard time thriving.
Below, we examine key factors that indicate whether or not Maryland is favorable for business owners. We also look at some of the must-have types of commercial insurance coverage that are required in the state.
Economic Trends For Maryland Business Owners
A state's unemployment rate is key indicator of whether or not the climate is favorable for business operations. As of May, 2019, the unemployment rate in the Old Line State was 3.8 percent; 0.2 percent higher than the national average. In October of 2020, the rate hit a record low of 3.7 percent, so in less than a year, the unemployment rate has increased by .01 percent; a marginal increase. However, there have been gains in recent years; in 2010, the rate was 7.8 percent; that's a 4.0 percent increase in less than a decade.
The best place to start a business in Maryland is in Baltimore, the state's largest city. Suburbs of the city also offer promising conditions for business owners, such as Ellicott City, Columbia, Fulton, Lutherville, and Elkridge.
The state of Maryland offers a friendly culture for business of all shapes and sizes; but, the industries that are see the most success in the Old Line State include:
- BioHealth and Life Sciences
- Advanced manufacturing
- Information technology
- Aerospace and defense
- Financial services
- Energy (specifically green energy)
- Hospitality and tourism
Commercial Insurance Regulations In MD
The Maryland Insurance Administration regulates insurance in Maryland. Commercial insurance is designed to protect business owners from potential perils; it also protects anyone that interacts with a business, including consumers, vendors, and employees. Having the right type of coverage is not only crucial to avoid serious financial devastation in the even that a catastrophe does occur, but certain types of insurance are mandated, meaning business owners must carry specific forms of coverage.
In the state of Maryland, business owners are required to carry workers' compensation insurance, which offers coverage for on-the-job accidents and illnesses that employees sustain, is also required. Other forms of insurance coverage that business owners may need to invest in depend on the specific industry; for example, companies that distribute or sell alcohol will need liquor liability insurance, and businesses that utilize vehicles for business-related operations should carry commercial auto insurance to protect their drivers and other motorists on the road.
Additional Resources For Non-Profit Insurance
Find useful articles on business insurance for non-profit 501(c)(3) organizations, charities and associations.
- Animal Shelter & Pet Rescue
- Credit Union
- Fraternal Organization
- Labor Union
- Parent Teacher Organization
- Public Administration
- Social Work Services
For 501(c) Non-Profits - Directors And Officers Liability Insurance has become an increasingly important policy to have. D&O coverage protects insured directors or officers against claims involving allegations of wrongful acts occurring while performing their duties as such. The insurance is divided into two separate coverages:
Side A coverage reimburses the individual directors and officers for payments made for loss each has incurred because of wrongful acts.
Side B coverage reimburses the corporation for the payments it has made on behalf of the directors or officers themselves.
General Liability is a foundational policy for almost any business. Most companies do not have any control over the final cost of injuries to a person injured because of their operations, products, or services. The person injured may be a young child, a blue-collar worker, a surgeon, or a homeless person.
The cost of the injuries may be comparatively minor or run into the millions of dollars, depending on the person and the extent of his or her injuries. Do you have sufficient assets to pay such a loss?
Commercial general liability insurance is designed to help you protect your assets with three main coverages:
- Coverage A: Bodily Injury and Property Damage Liability
- Coverage B: Personal and Advertising Injury Liability
- Coverage C: Medical Payments
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Computers, Valuable Papers and Records, General Liability, Directors and Officers Liability, Employee Benefits, Professional, Umbrella, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Equipment Breakdown, Flood, Computer Fraud, Forgery, Fine Arts, Musical Instruments, Commercial Articles Floater, Computers, Cyber Liability, Employment-related Practices, Business Auto Liability and Physical Damage and Stop Gap Liability.
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Also find Maryland insurance agents & brokers and learn about Maryland small business insurance requirements for general liability, business property, commercial auto & workers compensation including MD business insurance costs. Call us (443) 407-0500.