Your Organization conducts a wrapping paper sales drive as a fundraiser and takes delivery of the merchandise on Friday.
Until the children pick the paper up on Saturday, you agree to keep it in a portable storage building behind your house. What you don’t realize is that the building has a leaky roof… and a rainstorm is coming.
Overnight, all of the wrapping paper is ruined, the children have come to pick up their portion for delivery, and your Treasurer says that your Organization still owes the fundraising company for the product.
The property coverage policy is designed to protect you in situations like this.
Your Property policy covers personal property of your Organization from perils such as fire, lightning, windstorm, theft, and vandalism.
Personal property of Parent Teacher groups are typically items including popcorn machines, school store supplies, cash registers, posters, coffee makers, and any other property that your Organization uses on a regular basis.
Fundraising merchandise is also covered for the same perils.
Gifting Money to the School
We all know that Parent Teacher groups raise money to purchase items to give to the school. To decrease your liability, AIM recommends that the Parent Teacher group not purchase any merchandise to give to the school directly.
A better choice would be for the Parent Teacher group to “gift” the money to the school and allow the school to purchase the items that your Organization wishes to donate.
Please refer to our sample gifting letter. While this is an acceptable form, we encourage you to put together your own gifting forms with your letterhead to use for your school.
Gifting Property Directly to the School
Although we recommend that any Parent Teacher group donate money directly to the school, we recognize that many will donate property directly to the school.
If this is the route your Organization chooses, we recommend getting the school to sign a Hold Harmless Agreement for the property that is donated.
The Hold Harmless Agreement says that the school will hold your Organization “harmless” for any maintenance to or accidents that result from the donated property. Please refer to our sample Hold Harmless Agreement.
There are certain exclusions within your Property policy. The following is a list of specifically excluded items:
This list is not all inclusive. If you have a specific question about event coverage, please call AIM at 1-800-876-4044.
Under the Terrorism Risk Insurance Act, you have the right to purchase insurance coverage for losses resulting from Certified Act of Terrorism (certified by the Secretary of the Treasury).
Contact us with questions about determining if your organization needs Terrorism coverage.
There is a $250 deductible for a claim filed under this policy.