Do small homeschool groups need insurance?
Often they do, especially of their host/landlord requires general liability insurance.
To help you discern your risk and need for insurance, Harvey Mechanic, an attorney that specializes in nonprofit law, lists some potential claim areas:
POTENTIAL CLAIM AREAS:
1. Discrimination (Age, Race, Sex)
2. Wrongful dismissal of employee
4. Financial failure/bankruptcy
5. Poor administration resulting in losses
6. Causing the organization to incur unnecessary tax liability
7. Imprudent investments
8. Misuse of contributions
9. Conflict of interest
10. Unauthorized loans
11. Failure to obtain competitive bids
12. Unwarranted expansion
13. Failure to obtain government funding or lower interest loans
14. Misuse of government funds or grants
How many of these situations could occur in your homeschool organization? Probably some, but not all. Large nonprofits like the Red Cross or a hospital face many of these potential risks and need insurance.
In my article, “Insurance for Homeschool Groups,” discuss the various types in insurance a homeschool group might need and how to lessen your risks to obtain a reasonably priced insurance policy.
Carol Topp, CPA