Insurance is useful to address PA/PTA liability concerns and to protect your PA/PTA’s leadership in the event your PA/PTA is sued or some harm results from its activities. Even if claims brought against a PA/PTA are dismissed in court, legal fees associated with the PA/PTA’s and directors’ and officers’ defense can be very expensive, and ongoing litigation can be disruptive to your organization. For that reason, some PA/PTAs purchase general liability insurance, as well as directors and officers insurance (known as “D&O insurance”), which protects their officers from expenses associated with litigation.
PA/PTAs that choose to directly hire staff are liable for third party claims resulting from acts or omissions of employees. PA/PTAs hiring staff are required to maintain comprehensive liability insurance.
If your PA/PTA has limited resources, it might not be able to afford insurance, but it is important to evaluate all factors, including the nature of your PA/PTA’s work, as well as both your organization’s and directors’ and officers’ assets, when making a decision about whether or not to purchase insurance. If your PA/PTA decides that it needs insurance, it is advisable to find a broker experienced with not-for-profit organizations. Keep in mind that purchasing insurance is an expense, and must be approved as a line in your budget.
You can get more general information on PTO Today’s explanatory page about insurance, though keep in mind that PA/PTAs in NYC are NOT covered by their school’s insurance.