Bonding and Insurance

As a protection for all unit, council and district PTAs, the California State PTA has contracted for General Liability, Directors and Officers Liability, Bonding, and Workers’ Compensation insurance coverage. Certain activities and events are prohibited, either because they are excluded by the insurance policy or because they are dangerous or jeopardize the safety of children and youth.

There is no distinction between student and adult members with the insurance broker.

Participation in the California State PTA insurance program is required for all unit, council and district PTAs. The California State PTA contracts for coverage and districts are notified of the cost for insurance each fall. Premium costs vary, depending on statewide losses during previous years.

Insurance premiums are not refundable. The premium must be forwarded through PTA channels to be received in the California State PTA office by December 20, or a late fee of $25 will be assessed by the California State PTA. Postmarks will not be accepted. Council and district PTAs shall not assess additional fines or fees for late submission of insurance, per capita, or reports required by the California State PTA (The Council PTA; The District PTA).

District PTAs will notify their units annually of the current premium costs and the date premiums are due to district. Premiums are not to be sent directly to the California State PTA. The insurance term of coverage is one year, from January 5 through January 4.

Details regarding coverage and required annual payroll reporting of Workers’ Compensation are furnished to PTAs in service mailings, and other direct mailings from councils, districts, and California State PTA.

Comprehensive General Liability

Coverage with a $1 million limit covers all unit, council and district PTAs when involved in approved PTA activities. It protects all members, in case they are held legally liable for bodily injury or property damage to another person that resulted from an allowed event. This is not a medical policy, but a policy that pays because an individual is held legally liable. If someone is injured but the injury is not a result of PTA negligence, the individual should utilize his or her private medical insurance coverage.

Directors and Officers Liability

Coverage with a $1 million limit covers all unit, council and district PTA officers. It provides defense and protection if a director, officer, or member of PTA is sued for failure or alleged failure of a member to live up to the responsibilities and duties assumed as a member of the PTA.

Bonding Insurance

Bonding insurance covers all unit, council and district PTAs and all persons handling funds and PTA assets. The basic bond provides $15,000 Employee/Volunteer Theft; $15,000 Forgery; and $15,000 Theft, Disappearance and Destruction of money or scrip. There is no coverage under the bond for wire transfers. There is a $500 deductible.

Higher insurance limits can be obtained for an additional cost directly from the insurance carrier. If the unit wishes a higher limit, one may complete the form “Excess Crime Bond Application” in the Insurance and Loss Prevention Guide. (Higher limits are recommended for units purchasing scrip.)

Claims must be reported in a timely manner. As soon as a bond incident investigation is initiated, it must be reported to the district PTA president, who will contact the insurance broker.

Workers’ Compensation Insurance

The California State PTA carries Workers’ Compensation insurance for all operations of the PTA in order to comply with the State of California Workers’ Compensation Law. The law requires that any organization considered to be an employer in the state must provide protection for its employees (California Labor Code, para. 3700). Any PTA that pays wages directly to an individual and reports said employment on the Workers’ Compensation Annual Payroll Report must comply with this mandate.

The Workers’ Compensation system was designed to provide prompt and effective medical care to workers injured on the job and to provide replacement of a portion of wages lost while a worker is recovering from an injury. Workers’ Compensation insurance protects the employer against losses due to work-related accidents and illness. The California Workers’ Compensation system is a no-fault system, which means an injured worker is entitled to benefits without regard to negligence or fault. For procedures when an employee sustains an injury on the job, see Workers’ Compensation Insurance.

In circumstances where a unit, council or district PTA is hiring part-time or full-time employees or independent contractors and the aggregate total cost of the employee wages is in excess of $1,000, the California State PTA will charge the unit, council or district PTA additional monies to help cover the cost of the increased premiums of Workers’ Compensation Insurance coverage, as needed.

Every association is required to submit a Workers’ Compensation Annual Payroll Report form by January 31 (See Workers’ Compensation Annual Payroll Report; Workers’ Compensation Annual Payroll Report).

 

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