My opinion is that not having insurance is not a good thing. You should be able to get all 4 policies for somewhere in the neighborhood of $400-$600, depending. If that's too high, then I would prioritize by getting the general liability and the bond.

Thanks for the info. I'm really finding NPN insurance to be the best solution. They are so in tune with our organizations.

I'm finding that insurance is very important. Let's just say something does happen, someone burns their month on the pizza at open house. The family isn't sue happy, but doesn't have the health insurance they used to and have deductibles to cover and they will name anyone on the suit. That includes the PTO. Being 501(c) makes your group a separate entity, but that doesn't mean they won't name individuals on a suit also. We've all worked too hard to see all our fundraising go to defending ourselves, even if we are in the right. The insurance covers all that.

There's also the embezzling. You don't think it will happen, but they say most are from good people that just want to float things for a month til things get better and it just gets ahead of them. In today's economy it's not so farfetched.

Of course that when you're dealing with fair minded people, what about the other side.

I could go on but you can look into it yourself. Our district encouraged us to go 501(c)(3). We have more control and some benefits that district controlled groups may not.

Our Parents' Group doesn't carry insurance. Is this a bad thing? What does the insurance cover you from? We don't host many events that aren't already school events. We have pizza durning our Open House, book fairs, and the normal fundraisers (catalogs). Does our group need insurance? We are not 501(c), we are under our school district's tax numbers. I'm taking over as one of the Co-Presidents for this school year and want to understand what I'm in for. Any help anyone can offer me would be WONDERFUL!!!

The general liability policies offered by the PTO Today (NPN) program and the national PTA have a liability limit of $1,000,000--I wouldn't suggest $100,000. Unfortunately, in today's society that figure is far too low. (General liability coverage is for when someone or someone's property is injured/damaged.)

As for officer's liability insurance (also called D&O coverage), you do still need it, regardless of your 501(c) status--that only refers to whether you pay income taxes, it has nothing to do with insurance. Again, a standard liability limit is $1,000,000; the deductibles on the NPN and PTA programs are $1,500.

You should also look at a fidelity bond (also called bond insurance). This protects the organization's money against embezzlement, theft, etc. Here, the limits are lower--you can usually purchase for as little as $10,000. How much you buy depends usually on what your budget is (i.e. how much money someone could actually make off with). The deductible on fidelity bonds for the NPN and PTA programs is usually $250.

Finally, you might need to look into property insurance if your group actually owns some equipment. Again, the liability limits there are much lower--like $10,000.

Just make sure when you are getting your various quotes that you have an apples to apples comparison in terms of liability limits, deductibles and exclusions. It's also a good idea to check the financial rating of the insurance company offering the coverage, which you can do at www.ambest.com/ratings/ --you need to register, but it's free.

Good luck--the NPN program rates are not as inexpensive as the PTA rates, but probably better than anything you would find on your own.

I'm looking for some advice on how much liability insurance is needed. Are the limits $100,000 or more. I'd like to be able to compare the policies I'm getting quotes for and ask the right questions. Including the NPN one offered at PTOToday.com.

. . .and doesn't the (501)(c)(3) protect officers' liability.

Tracy