How to Buy Booster Club Insurance: 5 Easy Tips
Booster club insurance protects volunteer boards from lawsuits and gives parents peace of mind at every game and fundraiser. Booster clubs are independent groups that rally parents and students behind high school or college athletes. With so many events to plan and money to raise, the risks are easy to miss. However, lawsuits against booster clubs happen more often than most volunteers expect. As a result, Bene-Marc Youth Sports Insurance recommends a strong directors and officers policy as the heart of any booster club insurance plan. A single lawsuit can drain years of fundraising in one stroke. That is why a strong D and O policy belongs at the center of the plan.
What booster club insurance includes
Directors and officers (D&O) coverage protects board members and the club from claims tied to mismanagement. Common D&O claims include:
- Breaking booster club bylaws
- Discrimination based on race, sex, gender, or other protected status
- Intellectual property theft
- Misrepresentation of facts to parents or donors
- Failure to count votes correctly
A director or officer can be sued by parents, third parties, or even the club itself. Because of this, your booster club insurance plan should include three D&O parts. Side A protects the board member directly. Side B reimburses the club for defending the board member. Side C covers both the board and the club when named together in a suit. Knowing which side applies helps the board pick the right limits. Most clubs carry all three to avoid a coverage gap.
Why volunteers walk away without coverage
Lawsuits often start when someone loses money, status, or credit because of a board decision. For example, a vendor may sue over a contract dispute. In addition, a parent may sue over fundraising practices. Without booster club insurance, your savings are open to a single complaint. As a result, many volunteers refuse to serve on a board that lacks a policy. By contrast, a clear D&O plan invites strong leaders to step up. Even a baseless complaint can run up legal bills a volunteer cannot absorb. Strong coverage is what convinces good people to serve.
How D&O claims-made policies work
Most booster club insurance D&O policies are claims-made. Claims-made means the policy responds only if the lawsuit is filed while the policy is active. For example, a board member made a call last year, then the suit lands today. As long as the policy is in force when the suit arrives, the member is covered. On the other hand, if the policy lapses, even old claims may fall outside coverage. According to the Insurance Information Institute, occurrence policies work differently and cover the date of the incident. Confirming the policy stays active between board terms prevents a nasty surprise.
How to set the right limits
Most D&O limits cover $1 million per claim. Still, the right number depends on the club’s size, fundraising volume, and the decisions the board handles. For example, a small club with simple operations may carry a lower limit. By contrast, a club that signs vendor contracts and manages large funds needs more protection. Talk with your agent before renewal to confirm the right fit. A quick yearly review keeps that limit matched to how the club grows. Bigger fundraisers usually make a higher limit worth the small added cost.
Talk with our team
Bene-Marc Youth Sports Insurance has helped clubs, leagues, and camps protect their boards for over 53 years. Read more about our sports insurance options or learn how excess accident insurance rounds out a strong plan. Then call 800-247-1734 for a booster club insurance quote tailored to your group.
