Insurance

Insurance Coverage Reminder

We’ve just entered a new year of coverage (Jan 5, 2017 – Jan 4, 2018), so this is a good time for a reminder.

Red-Lighted Activities
A continuing concern noted by our insurance carrier and CAPTA are PTAs which knowingly choose to sponsor red-light designated activities. Red-lighted activities have no liability coverage protection if there is an accident. And there is a broader STATUTE OF LIMITATIONS for injuries suffered by minors. This means personal liability could fall directly on individuals responsible for the activity. Anyone participating in the decision to conduct the activity may be held liable – not just those who sign the contract.

Harassment and Defamation
Another issue of concern is harassment and defamation. The key to handling this troubling problem is handling each complaint with consistency. Address the situation with the complainant immediately. Assure them their complaint is being taken seriously. If you have any questions regarding anything in this category, contact the insurance carrier immediately. Documentation is key to avoiding a claim.

Mismanagement of PTA Funds
Mismanagement of PTA funds is another problem. If it is suspected that money is missing, contact the council or district immediately. Large amounts do not usually disappear all at once. Again, DOCUMENTATION is necessary. Our insurance carrier – and the police, when notified – will require as much of a paper trail as possible.
As members of PTA, it is our right and responsibility to know where the money is going and how it gets there. Do not make accusations or jump to conclusions. It might just be a mistake in recording financial procedures. With a little more effort and understanding we can limit PTA exposure to liability.
Please feel free to contact Sixth District PTA president, Elena Shea whenever there are questions about insurance issues.

The Insurance and Loss Prevention Guide provides direction on the programs and events in which a PTA may participate. It is divided into three sections: Red Light, Yellow Light and Green Light.

Red Light (see list below)  includes the prohibited activities and events that are not covered under insurance for the PTA.  When a PTA sponsors or conducts an activity listed in the Red Light Section and someone is injured because of PTA negligence, the individual PTA officers could be held personally liable. Child care programs are not covered under the California State PTA comprehensive general liability insurance policy. If the unit PTA sponsors such a program, it must purchase separate insurance for the program.

The California State PTA strongly urges unit, council and district PTAs to refrain from serving alcoholic beverages at PTA functions. PTAs may not engage in the sale of alcoholic beverages. See the Insurance and Loss Prevention Guide, Red Light Section.

Although child care programs are not covered, baby-sitting services during meetings and events when a parent is on the premises are acceptable and encouraged when following appropriate guidelines (PTA Provided Baby-Sitting Services, 5.8.5, 245).

Yellow Light Activities includes the cautioned activities and events. Participation in these activities may require additional insurance coverage, waivers of liability, and certificates of insurance. PTA must strictly adhere to PTA guidelines and/or other special arrangements. PTA must meet all stipulated conditions and must consult the insurance broker prior to undertaking these activities.

Green Light Activities includes the approved activities and events.

Examples of Red Light Activities (check your CA State PTA Insurance and Loss Prevention Guide for a complete list) serving alcohol beverages, animal rides, moon walk, trampolines, roller blading, skateboarding, martial arts, dunk tanks, crossing guards, block parent, cosmetic services, & many more.  (Your unit president should have a copy of the Insurance Loss and Prevention Guide.)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s