What is the Typical PTO Policy for Executives? - Zupnick Associates

by Stephen Weru )

You spend countless hours planning and organizing school events meant to bring the school community together.

However, what happens when a student gets injured? Or when funds get embezzled? What happens when a lawsuit is filed against you due to the decisions you made as a PTO executive?

Does your school even cover you for the work you put in? And if it does, what does the typical PTO policy for executives entail?

These are questions that every PTO executive has asked themselves at one point. Today we answer them. In this article, we’ll go into detail on what a PTO policy for executives should include.

Let’s get right into it.

Why do PTO Executives Need Insurance?

To answer this question, consider this scenario.

Your PTO group is organizing a school carnival to bring the community together. However, during the event, one of the major vendors fails to show up despite receiving payment. Upon further investigations, you discover that the vendor went out of business due to the COVID-19 pandemic.  Some parents go ahead and sue the PTO executive committee for decisions made when contacting vendors.

Who covers the PTO executives’ legal fees?

Or maybe all vendors arrived, but two students get injured in one of the carnival rides. As part of the PTO managing committee, you’re named in a lawsuit for your role in decisions made. .

Who pays for the fines and legal fees?

Typically, you’d pay for your legal fees and any fines that may accrue due to cases against you. However, with PTO insurance, you’re sure that you’re protected from the effects of wrongful act suits filed against you as a PTO executive.

With a Parent-Teacher Organization insurance, you can conduct your PTO duties without the fear that your assets, including houses, vehicles, and future income, will be at risk in case of a lawsuit against you.

PTO Insurance Options

Most PTOs have a choice of four main insurance options. These are the:

  • General Liability Insurance (Event insurance): This policy protects you from lawsuits if someone gets injured in a PTO event.

  • Bond Coverage Insurance (Embezzlement insurance): This cover protects PTOs from financial losses that may occur in case a treasurer, president, or courier runs off with the organization’s funds.

  • Commercial Property Insurance (Inland Marine Insurance): This cover protects any property that the PTO owns.

  • Directors and Officer Liability: (Professional liability insurance): The D&O liability protects the PTO board from any wrongful act suits that may be filed against them. This is the typical policy for you as a PTO executive.

But what exactly does the professional liability policy protect you from? Keep reading to learn more.

Typical Policy for PTO Executives

As explained above, the typical group PTO plan for executives provides a cover for any lawsuits that may arise due to board members’ decisions. PTO executives with professional liability coverage are also protected from cases that may arise from:

  • Negligent acts

  • Issuing misleading statements

  • Not following PTO by-laws.

  • Inappropriate use of PTO funds

However, some offenses aren’t covered by the D&O liability policy. These include:

  • Criminal activities

  • Dishonesty

  • Willful, reckless behavior

  • Knowingly participating in illegal activities.

Does the School Insurance Policy cover your Parent-Teacher Group?

Despite all the work they put in, most PTOs aren’t insured by the school they inhabit. Although there are school districts with policies that cover PTOs for events held on school campuses and during school hours, there are schools with policies that don’t cover parent-teachers groups.

One way to ensure that your PTO group is covered under the school district insurance policy is by giving the school board a detailed list of all activities you intend to hold. With such an exhaustive list, the school board should then get back to you with a list of covered activities.

With such assurance, you can plan the specified events with confidence that you’re not at risk.


You put in a lot of work to planning and organizing events. However, if your PTO board isn’t insured, your hard work could place your assets at risk.

Don’t let this happen.

Make sure your school board provides cover for your PTO group.

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