Your booster club generally operates under the supervision of a school or board. However, it also maintains a significant degree of organizational autonomy. That could open the club up to significant risks and liabilities. Therefore, insurance coverage is a necessity for the club's protection. Why do you need this protection?
Can Booster Clubs Be Sued?
The simple answer: Yes.
Booster clubs often have decision-making power over sports events their respective financials support. Anyone in the organization could face a lawsuit at almost any time, and very few immunity rules exist.
The club could face legal assaults from all fronts. Suits might target not only the club, but also individual players within the group.
Suppose members allege that the club embezzled or inappropriately managed club funds. They might sue the club as a whole. They might also sue specific individuals, such as the president or financial officers. These parties must respond to the allegations.
Even if the allegations prove completely inaccurate, the costs of the suit might still prove very high. For example, legal fees and the defense costs might cost thousands of dollars. Even if the entire suit proves frivolous, the booster club and named individuals might accumulate significant monetary losses.
For this reason, every booster club can enjoy various forms of liability insurance. Coverage can often protect the organization in case of many different legal challenges.
Necessary Liability Coverage
Liability coverage helps booster clubs in the event the club causes harm to third parties. A claim on your policy might help you settle with those parties for the damage costs.
Most clubs need a few different liability policies to receive enough protection. Some of these policies might include:
- General Liability Insurance: This is often the most-basic level of protection. It usually covers property damage and bodily injuries you cause to others. For example, if a parent slips, falls and breaks a leg at a club meeting, this coverage can help you address their medical costs.
- Directors & Officers Coverage: A harmed party might sue the club's leaders, personally. This coverage can help protect the individuals' personal assets from such legal challenges.
- Cyber Liability Coverage: Managing club information on computer networks raises the risk of cyber theft (and thus, identity theft). This coverage can help protect both the club and members in case of exposure of private data.
Talk to a Bene-Marc agent about the benefits of different liability policies. They'll help you pinpoint the most-appropriate coverage.