Is insurance needed for small homeschool groups?

August 25, 2009

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
3. Mismanagement
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.

Insurance for homeschool groups

Carol Topp, CPA

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Planning a Homeschool Co-op

July 10, 2009

Faye, a homeschool mom and columnist for the DC Examiner.com, has a great list to help start a homeschool co-op (edited slightly for brevity):

Although it is wonderful to be able to plan lessons, activities and programs that best meet your child’s needs, sometimes banding together with other homeschoolers can be a huge blessing!  Planning a homeschool co-op is a large undertaking, but with some good people and a strong foundation, it can benefit you and your family in many ways. Whether you want to have a group for regular field trips, or you are looking for a way to provide some structured school time in a group setting, a homeschool co-op could be just the ticket.

If you are interested in starting your own homeschool co-op, I would like to offer some suggestions.

1.  Start with your homeschool support group and friends.  Who would be willing to help you get things started?  2-5 people is a good number for a planning group (more than that and it might seem impossible to find a time when everyone can meet!).

2.  Spend some time brainstorming about what the “ideal co-op” would be.  Would you meet once a week, or every morning?  Will the group be for just a certain age group (ie: only elementary-age)?   Do you want to offer set classes, with textbooks, tests, homework, etc?  Or perhaps something more relaxed, like clubs and projects?

3.  Once the group has ironed out a general idea of what the first year could look like, you will need to find a place to meet.  This may prove to be one of the most daunting tasks!  Try the local library or community center, a church or firehouse, or maybe even an empty business.

4.  After you have secured a space, it is time to invite homeschooling families to join you!  It can be tempting to hang up flyers and spread the word via homeschool yahoo groups and blogs.  However, a word of caution.  I have heard many, many stories about co-ops, and the one thing that resonates over and over again is the importance of having a group of like-minded people.  Now, that doesn’t mean that you all have to believe in the same things–far from it!  At our co-op, we enjoy having new points of view for the kids to consider.  However, if it is important that the co-op be Christian-based, that might not be a good match for someone who is agnostic.

5.  For your co-op to grow and thrive, people have to be willing to work together, to pitch in, and to get along.  It is an “army of volunteers”, and if the adults/kids don’t get along, the co-op will suffer and perhaps never get off the ground.

6.  Once you have a location and a few families have indicated interest–YEAH–you are in business!!  Meet with your planning group and decide what classes/clubs/projects you want to offer.  Some ideas to choose from:

  • Art/drawing
  • Science
  • History
  • Foreign language
  • Physical education

7.  Finalize which classes you will offer, decide on a start date, then work out registration details and fees.  If there is a fee to use your facility, all families will need to divide that expense. Many facilities will also want you to carry a separate insurance policy (for one local co-op, it is @$35.00/family/year.)

8.  Do an Internet search to find forms you may need/want to have (registration, emergency info, family info, student info, etc.)  The planning group can share these tasks so no one person feels burdened.

9.  Plan a park day for families to meet, get everyone registered, order your materials, and you’re on your way!

10.  You might also consider getting a website set-up exclusively for your co-op.  Homeschool-Life.com offers a low/no-cost website service for homeschoolers, and it allows you to have group registration, to use message boards, to provide event reminders, etc.

11.  Be sure that everyone who chooses to participate is willing to help with some aspect of the group, whether it is teaching a class, cleaning up, watching the little ones, or helping as needed.  “Many hands make work light” is certainly a true statement when it comes to a homeschool co-op!

12.  Resist the urge to “do everything” in your first year.  It will be tempting to do this, believe me!  Try to offer just a few things to the group (no more than four).  See how that works out, ask for feedback, and your group can grow from there.

It is a tremendous amount of work to get a co-op up and running, but the rewards cannot be overstated.  As the group grows and expands, your kids will have incredible opportunities for learning, friendships, and fun!  If you have experiences with, or suggestions for a homeschool co-op, please share them in the “comments” section below.  I am sure there are many good ideas right here in our own community!HSCo-opsCover

Faye might be right that it is work to start a homeschool co-op, but there is help.  My book Homeschool Co-ops: How to Start Them, Run Them and Not Burn Out will walk you through the start up and  running your group.

Also my website www.HomeschoolCPA.com has many helpful articles on starting a group, getting a checking account and buying insurance.

You can do it! Just get some help from those who have gone before you!

Carol Topp, CPA


Three kinds of insurance for homeschool groups

May 30, 2009

030429_1897_5028_xsmsCarol,

We were told by our host church that we’ll need our own insurance policy.  Can you look into that for us?

Beth S, Ohio

(I am a volunteer parent in this homeschool organization)

This homeschool group had been told by the pastor of the church where they would start some homeschool classes twice a week that they their own insurance policy.

So they need their own insurance.  But what kind? In talking to a helpful insurance agent, I learned there are at least three types of insurance a homeschool group could possibly need:

General Liability (sometimes called fire insurance).  It covers the property an organization owns or rents.  This is what the church is wanting from our group in question.  They want an insurance policy if our group damages their property.  Someone suggested that we ask the church to add our group as a rider.  It might be cheaper.  Or, it was suggested, we should get “event” coverage. It might be cheaper since we don’t meet every day in the church.

Accidental Medical coverage.  This is for coverage if a child hurts him or herself while at our homeschool function.  Since we don’t have gym classes or physical activities I think my group will skip this type of insurance.  We’ll probably get the parents to acknowledge that they will cover their children’s medical expenses.

Director and Officer insurance: This is to protect the leaders from being personally sued for liability.  The agent said these policies start at $1,000/year.  Yikes!  He said it is because it includes provisions for employee s*xual harassment, etc.. Because of the expense to the organization, some non-profits board members carry their own liability insurance.  Personal liability insurance, sometimes called an umbrella policy, can be purchased separately.  Our group doesn’t have employees (or a very large budget) and so I think that we’ll forgo the D&O insurance, also.

Carol Topp, CPA


Insurance for a homeschool sports program

October 26, 2008

Does your homeschool sports group need insurance? A homeschool leader in Indiana shares information on her insurance company.

Dear Carol,

I heard you speak at the Cincinnati Homeschool Convention and it was VERY helpful. At the end, I mentioned that we had sports insurance and you mentioned that you wanted that info. So, in keeping with my promise, I am responding to that request now.

We use USSFA which was established many years ago, as I understand it, to provide insurance for homeschool sports. There are only a few states in which they cannot insure, but you can contact Lew Owens for more information if needed.

email: ussfaoffice@comcast.net
USSFA Office
4150 Kildeer Drive, Ste 2-A
Indianapolis, IN 46237
Phome: 317-357-8908
Fax: 317-357-8791

We have used this for several years (our sports program is over 11 years old) and have been very happy with the program USSFA provides. With this insurance, we are able to show the schools and other rental locations that we have liability insurance and then we have the added benefit that our player/coach coverage picks up their existing medical coverage ends.

If you call Lew, please be sure to mention that you heard about him from me (Shawna Howell). Effective 3/15/08, I became the director the SEI Panthers Basketball (SE Indiana) program and he will know of me through that affiliation.

My prayer is that we can continue to network with one another for the benefit of the homeschool community across the country.

Thank you for all that you do to help our community and particularly for sharing your wisdom with us at the convention. I was truly blessed.

Blessings,
Shawna Howell

Thank you for sharing this helpful information, Shawna.

Carol Topp, CPA