Booster Club Insurance: What You Need to Know

Introduction

One of the natural necessities of our world is having proper insurance. We all like to have coverage and comfort in the case of something terrible happening to us or our property out of the blue. For your booster club, like any business, this idea remains as well.

Part of managing a well-structured booster club is having proper business insurance. This insurance will help to cover costs of unexpected damages and other issues that may impact your club. Without this insurance you and your booster club management may be forced to pay large expenses, out of pocket, to right unexpected and unforeseen wrongs.

What is Booster Club Insurance?

Booster club insurance refers to the insurance that a booster club as an organization would have to cover any unforeseen expenses due to accidents or other extenuating circumstances. From a structural standpoint the type of insurance a booster club will register is non-profit insurance. This is the general insurance category that will fit and apply for booster club management.

Different Types of Booster Club Insurance

There are many different types of insurance that booster club management will have to evaluate and consider for their club. These coverages can be split in two categories of traditional coverages that are common to most businesses and additional coverages that vary based on need.

Traditional Coverages

• General liability Insurance: This is the standard insurance that covers businesses/nonprofits. This insurance covers your club from being sued against external parties. So if your club was running a fundraiser and a customer at the fundraiser was hurt and tried to sue, your coverage would protect you, depending on the situation of course.
• Professional Liability Insurance: If there is a hiccup and your club makes an error, professional liability insurance protects you from being sued due to your operational error. This insurance can help cover your defense fees for court and also give you money for potential settlements.
• Workers Comp: Insurance that covers employee’s expenses from accidents on the job. This covers illnesses and work related injuries.
• Property: This insurance protects against damages against physical property such as your club building, inventory, or other facilities and goods in possession of the booster club.

Additional Coverages

• Data Breach Insurance: Also referred to as cyber liability insurance, this protects your club from cyber threats such as hackers, and data breaches. It is great to have in the case of confidential files and data being taken from your computers.
• Business Crime Insurance: Although you may run an honest club with volunteers who have high integrity, you can still put parameters in place to protect your club.

With business crime insurance you can cover your club from potential things such as embezzlement by a treasurer, or forgery, fraud, and other business related crimes from volunteers and booster club management.

• Event Insurance: This insurance covers the unexpected cancellation of an event. This coverage protects you from unexpected forces that may cause your club to not have an event. This past year due to Covid-19 if an organization had this insurance they would have been covered and not have had to pay venue or meeting costs even though they could not meet in person due to the pandemic.

As you can see there are a number of different insurance solutions for businesses of varying sizes and their specific needs. As most booster clubs do not hire anyone, workers comp insurance is probably unnecessary. However, it might be a good idea to investigate General Liability Insurance as well as Event Insurance as needed. For easy online quotes try either Hiscox business insurance or Embroker business insurance.  Both are competitive in their offerings and will help you better understand your insurance needs.

Tip: If your booster club is a nonprofit, make sure you let either brokerage know!

Insurance Pricing

While it may differ based on the insurance company used, generally insurance can be paid out monthly or annually. The frequency of the payment will depend on what your club decides. Annual payments will be a larger lump sum as opposed to monthly payments that are smaller but occur more frequently.  Agian for more accurate pricing and a better understanding of your club’s insurance needs, we recommend reaching out online to Hiscox business insurance or Embroker business insurance.

Is Booster Club Insurance Required for My Club?

While there is no legal mandate for your booster club to have insurance, it is generally a good idea to have some form as protection in running a booster club. At the minimum it might be a good idea to at least have general liability insurance to have a solid base of protection for your risk management.

Pros and Cons of Having and Not Having Insurance

There are benefits and disadvantages of having booster club insurance. Each organization is different, so the types of coverage that one club has will be completely different from other clubs. Your booster club management will need to do proper analyzation and strategic thinking to determine if it needs insurance and if so, what types will be the best for your club. Below are some thoughts on the pros and cons of having insurance that your club will need to think through.

Having Insurance

• Pros: The Pro of having insurance is having protection against unforeseen circumstances from running a booster club.
• Cons: The downside of having insurance is the costs associated with it. Having insurance will cost you financially, and the more coverages you have the more you will pay. However, despite these costs in the case of an incident you will save with your coverage.

Not Having Insurance

• Pros: Not having insurance will allow you to have extra cash freed up for your club to do as it pleases. Since your club is not paying for any coverages you will have extra funds available.
• Cons: The cons of not having insurance is that if an incident occurs either internally, or externally around your club you may pay a huge bill that will snatch some of that freed up money.

The Verdict: Does My Club Need Insurance?

To best way to protect your organization is to have some type of insurance in place to limit as much risk as possible for your organization. The best way to mitigate risk as management is to have a safety net in place through booster club insurance.

Insurance Education = Risk Elimination

Accidents happen all the time. Although you cannot predict when, where, or even how these accidents will happen what you can do is take initiative and get the proper insurance. By having the proper booster club insurance you can be sure to manage and limit as much risk as possible so that your organization can flourish.  Still on the fence?  We recommend talking to an agent through Hiscox business insurance or Embroker business insurance to help you make the right decision for your club!