Insurance Considerations for Booster Club Fundraising Events

Booster clubs play a crucial role in the success and financial management of various organizations, including nonprofits, educational associations, athletic clubs and teams. However, while booster clubs may often operate with philanthropic and charitable goals, these organizations’ good intentions do not inherently protect them from risks and exposures that could have significant financial ramifications. Hosting fundraising events can be particularly risky, as such ventures may involve expensive financial investments and the need to account for potential accidents and other incidents.

Why Do Booster Clubs Need Insurance for Fundraising Events?

Hosting any type of event may involve significant risks and exposures. By welcoming other parties to a fundraising event, a booster club may be putting itself at risk for various liabilities and other potential incidents. Typically, organizing these events requires significant investment of time and financial resources, exposing the club to extensive losses. After all, even the most experienced and diligent planners may be unable to navigate certain unforeseen circumstances. As such, adequate loss control measures could play a critical role in limiting financial losses.

What Types of Insurance Should Booster Clubs Have for Fundraising Events?

A booster club’s exact insurance needs may vary significantly depending on their unique circumstances and the details of the event they are hosting. In many cases, organizers should prioritize retaining the following types of coverage:

• Special event insurance—This type of coverage may help pay for third-party losses related to your event, such as bodily injuries suffered by guests and property damage inflicted on a venue. Special event insurance may also help pay for losses arising from cancellations or rescheduling.
• Commercial property insurance—If a booster club hosts a fundraising event on its own business premises, this coverage may help pay for losses and damages sustained by its property and assets, including buildings, equipment, electronics, tools, furniture and inventory.
• Inland marine insurance—This coverage could be essential if a booster club plans to move its own property, such as equipment and furniture, to a different location for a fundraising event. For example, if a club must transport its property to an outside venue, inland marine insurance can financially protect it from theft, damage and accidents occurring while in transit or storage.
• Workers’ compensation insurance—Legally required in many cases, this type of insurance can provide financial assistance if a booster club’s employees are injured during an event or develop an illness as a result of their duties.
• Liquor liability insurance—Fundraising events may include the serving and consumption of alcoholic beverages, making this type of coverage essential. If a booster club’s guest becomes intoxicated and causes accidents or other losses, adequate liquor liability insurance can insulate the organization from financial consequences.

Get the Right Coverage

At Bene-Marc Inc., we have extensive experience helping booster clubs and other organizations understand the risks and exposures associated with fundraising and other special events. Contact us today to ensure you have appropriate coverage.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.