Ms. B -
I wouldn't expect the school's insurance to cover it. For example, our school is also used for Girl Scout or Boy Scout events, and while the principal does approve use of the school, I'm sure the school department (and/or their insurance carrier) would reject any claim of liability. Maybe if your PTO was not an independent organization -- what's called a PTC (.. committee) on this site.

And, as Nancy says: the officers would still incur legal fees trying to convince the judge that they shouldn't be liable.

-Geoffrey

I should add that our PTO does have our own general liability insurance policy to cover injuries against the organization.

Wouldn't the school's insurance cover any injuries during an event held on school grounds (held with Principal approval)? If it did then PTO and Officers shouldn't be held liable, right?

This is a new one to me so I'm curious to hear what everyone finds as well.

I did some more research and think I have a 'down & dirty' basic understanding of the two but would appreciate confirmation from any one.

In VERY simple terms--

Incorporating protects the officers from law suits involving injury. Only the corporation could be named in a bodily injury lawsuit. If you're not incorporated then the officers can be personally named/sued as well.

D&O insurance covers the legal expenses of the officers (for corporations and unincorporated orgs) if they were to be personally named in a a lawsuit claiming mismanagement or wrongful decisions situations.

So if our PTO is NOT incorporated and does NOT have D&O insurance then its possible that if a child fell off a mechanical bull and broke his leg at a PTO event, not only could the parents sue the PTO, but sue the officers for injury (b/c we're not protected by a corporation) AND sue the officers personally for making a decision to have a mechanical bull at the event. Regardless if the parent wins the lawsuit or not, the officers still personally incur legal fees.

Do I have the right?

Thanks!

Can someone please explain to me the differnce between 1) a corporation's "corporate shield" protecting officers and members from being held personally liable in a lawsuit against the organization versus 2) Director's and Officer's insurance. Examples of scenerios would be appreciated.

Our PTO is not incorporated nor does it have D&O insurance. I am trying to assess my risk as a new officer and report back to the executive board with risk scenerios for either option so we can decide what to do.

Thanks