Booster Club Insurance: Coverage Types, District Rules, and Costs

Why a Volunteer Club Needs Insurance

• Federal volunteer protection does not cover the club. The Volunteer Protection Act of 1997 limits some lawsuits against individual volunteers, but the statute states that it does not affect the liability of the nonprofit itself, and it excludes harm caused while operating a motor vehicle. See Fiduciary Duties of Booster Club Officers.
• State immunity can depend on insurance. California’s Corporations Code section 5239, for example, protects volunteer directors and officers from personal liability for negligence only if the damages are covered by liability insurance or the corporation made reasonable efforts to obtain it. Rules vary; see the club’s state page.
• The district will likely be named too. A lawsuit over a booster activity will likely also name the district, which is why districts require clubs to carry coverage and name the district on it.
• District coverage usually excludes boosters. District booster guidelines commonly state that district insurance does not cover booster clubs and that the district cannot provide coverage for them.

Coverage Types

Crime coverage note. Confirm in writing that the policy treats volunteers and officers as covered persons. Booster program crime coverage is often written to cover “employee dishonesty” with volunteers counted as employees, but a standard business policy may not.

What Districts Typically Require

District requirements vary, but district booster manuals share a pattern:

1. General liability of at least $1,000,000 per occurrence. Some districts set that minimum and reserve the right to require higher coverage for athletic activities and large events.
2. The district named as an additional insured. An additional insured is a party other than the club that the policy also protects. Districts commonly require a certificate naming the district as an additional insured on the club’s general liability policy before the club operates on district property. Some also want the school’s name in the certificate’s description and a copy of the endorsement page.
3. A certificate of insurance each year. California’s Fiscal Crisis and Management Assistance Team (FCMAT), a state agency that advises school districts, calls for clubs to submit a certificate annually showing at least the district’s minimum coverage.
4. A hold harmless agreement. Some districts require clubs to sign one.
5. Crime coverage. Some districts recommend crime coverage or a fidelity bond in an amount enough to cover the club’s total annual cash receipts.

A certificate of insurance is a one-page summary of coverage that the insurer or agent issues on request. The additional insured status itself comes from an endorsement to the policy, which is why some districts ask for the endorsement page and not only the certificate.

Booster insurers often require an annual audit by an audit committee and review of bank statements by a member without signature authority. Those controls belong in place anyway; see Internal Controls for Booster Clubs.

How to Get a Certificate for the School

1. Get the district’s written insurance requirements: limits, the exact legal name to list as additional insured, and whether the endorsement page is required.
2. Send the requirements to the club’s insurer or agent and request a certificate and endorsement.
3. Check the certificate: club name, policy dates, limits, additional insured wording, and school name in the description.
4. Submit it with the district’s annual booster paperwork.
5. Calendar the renewal date and request a new certificate before the old one expires.

What It Costs

Premiums depend on the state, the club’s activities, the limits chosen, the claims history, and whether the insurance program requires an association membership (some do, at additional cost). The factors that move the price most:

Crime coverage or a fidelity bond is often among the least expensive coverages. It is generally sold in multiples of $10,000 and can often be attached to the general liability policy.

Clubs comparing quotes should compare limits, deductibles, exclusions, and whether the district’s additional insured requirement is met, not only price.

Questions to Ask Before Buying

1. Does the general liability policy meet the district’s minimum per occurrence and aggregate limits?
2. Can the district be named as additional insured, and is there a fee?
3. Are volunteers covered as insureds under the liability policy?
4. Does the crime coverage include theft by volunteers and officers, and what is the limit?
5. Are concessions, fundraising events, inflatables, trips, or alcohol excluded?
6. Is abuse and molestation coverage included or excluded?
7. Does D&O cover claims by members and employment-related claims?
8. Is the club’s own driving covered (HNOA)?

Vendors and Rented Facilities

When the club hires a vendor with higher risk (inflatable rentals, food trucks, ride operators, security), require a certificate from the vendor naming the club, and the district if required, as additional insureds. When the club rents a facility, the owner will usually require the same from the club.