During episode four of BoosterHub’s The Boosted Volunteer podcast, the team sat down with Kerri McDonald, a chartered property casualty underwriter (CPCU) from RV Nucio and Associates. McDonald shared some excellent insights based on her extensive experience managing liability and risk for nonprofits.
The bottom line is that your booster club needs insurance to protect itself from the inevitable risks associated with fundraising, working with volunteers, and collecting large amounts of cash. Here are the highlights of this insightful episode.
Insurance Challenges and Risks
McDonald emphasized the unique insurance challenges faced by schools, parent-teacher clubs, and booster clubs. From fundraising events to field trips, each activity brings its own set of potential liabilities. McDonald underscored the importance of understanding these risks and ensuring that your club does all it can to minimize them.
Importance of Proper Event Planning
Proper event planning was a major talking point during the podcast. When planning a fundraiser, field trip, charity dinner, or other event, make sure that you’ve got an adequate number of volunteers available to keep everyone safe. Also, adhere to established best practices and make sure your staff is trained to perform any high-liability tasks.
For instance, if you serve prepared food at your concession stands, you may want to obtain food service licenses. Completing this extra step can help protect you and your club from liability while preparing food.
Preventing Theft
One of the key takeaways from the conversation was the alarming issue of theft within booster clubs. McDonald highlighted the necessity of internal controls and oversight to prevent financial mismanagement and fraud, a risk that, while uncomfortable to consider, is all too real in volunteer-driven organizations.
McDonald also touched on the importance of insuring a single activity versus the broader approach of insuring the organization itself. She mentioned that insuring specific activities is more cost-effective, but some larger clubs may need a blanket insurance policy.
The Cost of Insurance for Booster Clubs
McDonald advised that the cost of insurance for booster clubs can vary greatly based on the nature of an entity’s activities and the amount of money they raise. Naturally, the higher the policy limits, the more costly the coverage. When exploring coverages for your organization, you’ll need to obtain multiple quotes so that you can obtain the best rate.
McDonald’s Recommendations
McDonald strongly recommended that all booster clubs explore some sort of insurance policy, whether it be an activity-specific option or a blanket coverage for the organization. She mentioned that her organization insures the club based on its name, which ensures the policy carries over, even if board members change.
Does Your Club Need Insurance?
According to McDonald, the answer is a resounding “Yes!” Not only does your club need insurance for activities, but the organization itself may also need insurance. When pursuing insurance options, compare multiple quotes and make sure the coverage is adequate to cover your liabilities and potential losses. Investing in a great insurance policy can give you peace of mind while you focus on supporting your school’s student-athletes.
