Insurance Providers for Homeschool Groups

There have been a lot of homeschool leaders sharing helpful information on insurance for homeschool groups on the I Am a Homeschool Group Leader Facebook group. (Come join us!)

Be aware that insurance is licensed by the states, so many insurance plans are limited to only a few states where they are licensed.

Here are insurance providers in no particular order that other homeschool groups have used and comments from homeschool leaders:

 

We use Erie Insurance. If you are in a state that they service, I can’t recommend them enough. The agent was responsive, answered my endless questions about the policy and the many what if’s I could think of, and they came in significantly cheaper than the NCG quote. The best part was they set us up on the same type of policy that a school would use (they were well aware of the type of co-op we were), so every year they can adjust my coverage based on the number of students.

Mennonite Mutual was least expensive for us.

Brotherhood Mutual. They were more reasonable and better insurance in my opinion. https://www.brotherhoodmutual.com

NCG (National Church Group) sold through HSLDA (Homeschool Legal Defense Association) https://ncginsurance.com/home-school-insurance-solutions

There were concerns that NCG did not cover children ages 0-3 years old. As of August 29, 2019, they agreed to extend coverage to children in nursery care (ages 0-3 years) during homeschool group activities effective immediately.

This coverage will be available for an additional premium for nursery exposures within any homeschool co-op, support group, or Classical Conversations community.

The premium charge for this coverage is:Accident Medical – $20 flat charge and General Liability – $100 flat charge

For more info, contact NCG customer service  at homeschoolsupport@ncginsurance.com or at 833-409-8500.

Church Mutual will write policies for nonprofits. One leader said this,” They sent an agent to our building and she sat with me for two hours to understand our programs and needs. She made certain they cover what we need and do. AND, it was less than HALF the quote I got from Brotherhood! Its a really good rate in our opinion.”

I received a quote from Pro Insurance Managers for less than $300. It is event only general liability for the days we meet to do our program (18x/year). For us, a group just starting out, would this be a good choice? PRO Insurance Managers 1-877-CALL-PRO

Church Insurance Specialists, Inc. (in WV, OH, or PA). Contact Ron Shirey at 814-618-5532. You must have a board of directors, you may be an unincorporated association or an incorporated nonprofit, and you must have a religious purpose.

The policy will include general liability, a minimum of $1,000 personal property, sexual misconduct & abuse, accident medical, daycare exposure(for 3 & under), and directors & officers. He said the average quote is $2,000. Churches can be named as additional insured to cover their property.

Have employees? They can also quote you a worker’s comp policy and they offer a payroll service. For more information about their payroll service call 1-866-215-5540 and leave a message in the sales department.

 


Jamie Buckland, Classical Program Consultant gave an excellent webinar on insurance and a summary of questions you should ask your insurance provider when shopping for a policy.

Homeschool Risk 101: Understanding It & Transferring It

I attended the webinar and learned a ton! Very worth the low cost of $12.


Carol Topp, CPA

Helping Homeschool Leaders

Should our bylaws include an indemnification clause?

I’m reading your amazing ebook The IRS and Your Homeschool Organization, and I noted a difference in the bylaws example in your ebook vs your website.

There is an Article 7 Indemnification on the website sample bylaws.

Is an Indemnification section necessary to have in our bylaws?

Thank you,
Nicole

 

Nicole,

I’m glad the book is helpful!

You asked, “Is an Indemnification section necessary?”

 

What:

Let’s start by explaining what indemnification is. It means ‘to indemnify’:

indemnify

to compensate for damage, loss sustained, expense incurred, etc.
to guard, secure against anticipated loss; give security against (future damage or liability).

 

How does it work?
A nonprofit organization might include in their bylaws a clause such as this:

Indemnification
“The Organization agrees to indemnify, defend and hold harmless the board members, its officers, directors and employees, from and against all liability, loss, cost or expense (including attorney’s fees) by reason of liability imposed upon the Organization, arising out of or related to organization’s activities, whether caused by or contributed to by the members or any other party indemnified herein, unless caused by the sole negligence of the member or any other party indemnified herein. Organization may maintain insurance, at its expense, to protect itself and any such person against any such liability, cost or expense.”

Why have an indemnity clause:
It assures nonprofit board members that the nonprofit organization will pay any legal fees related to the organization’s activities or their board service (unless caused by the sole negligence of the board member). Typically, the nonprofit purchases Directors and Officer (D&O) insurance to pay for the legal bills when and if they arise.

Some people will not serve on a nonprofit board without an indemnity clause and without Directors and Officer insurance. So having this clause in the bylaws and a D&O policy helps attract and retain board members.

 

Why not have an indemnity clause:
Some nonprofits are small and they do not have the financial means to pay legal bills of board members or purchase Directors and Officer insurance.

True Story: I am on the board of a local charity (not a homeschool group) and we were reading over the bylaws word-by-word and updating them (a great idea to do that every few years!). The bylaws had an indemnification clause much like the one above. We were all a bit confused by the language and unclear what it meant.
One of the long-time, experienced board members said that the last sentence was the most important. It said: “The organization may purchase insurance for such indemnification as determined by the board.” This is a tiny charity, all volunteer, and we do not carry insurance to cover Directors and Officers. We decided to delete the indemnification clause since we had no resources to pay for attorney fees or D&O insurance. The indemnification clause was a promise we could not keep.

 

What should we do?

It’s best to research indemnification and talk it over with your board. Your board can decide to include it in your bylaws or not.

This is not legal advice. I recommend you contact an attorney if you need additional assistance.

 

Carol Topp, CPA

Helping Homeschool Leaders

Top 5 risks to churches (and maybe your homeschool group as well)

From the Managing Your Church webpage, I learned the Top 5 Reasons Churches are Taken to Court.

Maybe they are a risk to your homeschool group as well.

In 2017, the top five reasons were

(1) sexual abuse of a child,

(2) property disputes,

(3) personal injuries,

(4) zoning disputes, and

(5) insurance disputes.

 

The article goes on to say:

Churches must be aggressive (in preventing child abuse). Any reasonable suspicion of child abuse must be reported immediately. It doesn’t matter if you or your colleagues are defined as a mandatory reporter in your state or not. Report it. Transfer the risk to the state in terms of what can be done about it.

I think that advice applies to homeschool groups, as well.

Please, please protect the children in your program and get training on how to spot and deal with child abuse.

The article lists the following resources (check with your church host; they may already have some of these resources):

Reducing the Risk, a comprehensive child abuse prevention training program (available in DVD format or online streaming)

50-State Child Abuse Reporting Laws Survey for Clergy and Church Leaders (available as a PDF download or for ChurchLawAndTax.com subscribers)

Church Board Guide to a Child Sexual Abuse Prevention Policy

Child Sexual Abuse Response Plan

Draw the Line: Relational Boundaries for Safe Youth Ministry

Let’s work hard to keep children safe.

Carol Topp, CPA

HomeschoolCPA.com

Does My Homeschool Group Need Directors and Officers Insurance?

Does My Homeschool Group Need Directors and Officers Insurance?

 

Does your homeschool group need to protect your leaders? Sure you do, so you may consider purchasing Directors and Officers (D&O) insurance.

In this short podcast episode (12 minutes)  Carol Topp, the HomeschoolCPA, will explain:

  • What is D&O insurance?
  • What does D&O insurance protect?
  • When to buy D&O insurance?
  • How does being a nonprofit corporation help?
  • Article on Insurance for Homeschool Groups.

In the podcast Carol mentioned …

Money Management in a Homeschool Organization

Does your homeschool group manage their money well? Do you have a budget and know where the money is spent? Do you know how to prevent fraud? This 115 page book will help you to open a checking account, establish a budget, prevent mistakes and fraud, use software to keep the books, prepare a financial statement and hire workers. Sample forms and examples of financial statements in clear English are provided.

Click Here to request more information!

Carol Topp, CPA

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Summer reading for homeschool leaders: Homeschool Co-ops

 

This summer, I’ll be featuring one of my books for homeschool leaders every few weeks.

This week it’s my first book for homeschool leaders,

 

I published this book in 2008 with a different cover. In 2013 I updated it and chose a new cover.

 

HomeschoolCo-opsCover

Original cover

HS Co-ops Cover_400

Updated cover

This book will help homeschool leaders start and run a homeschool co-op.

It has chapters on:

Part One: Starting a Homeschool Co-op
Chapter One: Benefits of Co-ops
Chapter Two: Disadvantages of Co-ops
Chapter Three: Different Types of Co-ops
Chapter Four: Your First Planning Meeting
Chapter Five: What’s in a Name? Names, Missions

Part Two: Running a Homeschool Co-op
Chapter Six: Leadership
Chapter Seven: Co-op Offerings
Chapter Eight: Money Management
Chapter Nine: Managing Volunteers and Conflict
Chapter Ten: Ready for the Next Step? 501c3 Tax Exempt Status

Part Three: Not Burning Out
Chapter Eleven: Avoiding Burn out

Read a sample chapter

Read more about Homeschool Co-ops the book

 

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Insurance Questions for Homeschool Co-ops

 

Do you have questions about insurance for our homeschool co-op?

In this short podcast episode (10 minutes)  Carol Topp, the HomeschoolCPA, answers questions from homeschool leaders about insurance, waivers and using a church’s insurance coverage.

This podcast is an excerpt from a workshop titled Homeschool Co-ops: How to Start Them, Run Them and Not Burn Out.

In the podcast Carol mentioned other podcast episodes in this series. Find them (#121-125) at HomeschoolCPA.com/Podcast

Carol’s article on Insurance for Homeschool Groups

Featured resource

Phone Consultation with Carol Topp, CPA

Phone Consultation: A pre-arranged phone call to discuss your questions. My most popular service for homeschool leaders. It’s like having your own homeschool expert CPA on the phone!

Cost: $75/hour to nonprofit organizations.  $100/hour to for-profit businesses. $60 minimum.

Q &A by Email:  I am willing to answer questions by email, but it is very time consuming to read and reply to emails. I charge a reduced rate of $50/hour to read and reply to emails. Minimum $25.

Contact HomeschoolCPA, Carol Topp, CPA, to arrange a telephone consultation.

Click Here to request more information!

Carol Topp, CPA

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Best of: Insurance for homeschool groups

insurance

 

Here’s a collection of my best blog posts on insurance for homeschool groups:

Start off with my article, Insurance for Homeschool Groups. It discusses the three types of insurance a homeschool organization may need.

Then read through these blog posts for more information:

Three kinds of insurance for homeschool groups

Church requires homeschool group to have insurance

Does a Release of Liability agreement really count for anything?

Insurance provider works with homeschool groups

Do you need insurance on your officers?

I know that a lot of homeschool organizations have a difficult time finding insurance. If you have had success in finding an insurance company that understands homeschool groups, please leave their name in the comments so others can benefit from your knowledge.

Thanks!

Carol Topp, CPA

Insurance and fundraising for a homeschool team

stick_figures_team_puzzle_400_clr_7003

Carol,
Our homeschool group has an engineering class that has become a finalist team in an invention competition at MIT.  The teacher needed us as a non-profit organization to “back” or “sponsor” the team. All that means is we needed to support the team (not financially, but letter of recommendation).

Now that we have become finalists it is very possible we will be selected to travel to MIT for the competition.  Our concern is liability.  Is there a way for us to continue to support the team without a worry about insurance for the travel?  Can we have parents sign a waiver of liability?
The teacher has agreed to fund raise but NOT have any of the money go through our accounting, since we need to limit our income due to the 5013c requirements.  Our income needs to stay below a certain amount. We are a large coop and so our dues add up quickly.
Mary S
Mary,
Congratulations on your Engineering teams success!

I’m not an insurance or risk expert, so I am not really sure how “sponsoring” an academic team makes your organization responsible if there is an accident while traveling. Yes, have parents sign a waiver, but that is not guarantee that you’re free of responsibility. It just reminds parents that they should be carrying medical insurance on their children.

  • Act in a responsible, safe manner and you’ll lessen the risk.
  • Ask for drivers licenses from the drivers.
  • Ask if they have speeding tickets, their own insurance, etc.
  • Have chaperones at all times, never let the kids go off by themselves, etc.

I bet you can search the internet and find a waiver and maybe even rules to follow. Ask the competition for samples of waivers or contact the other groups coming and ask for their policies.

Does your co-op have liability insurance? You should call your insurance agent and talk to him/her. They may say your group is covered under your current policy or write you a special event rider.

Limits on nonprofit income

The dollar limits the IRS imposes are for organizations that have not yet applied for 501c3 status (if gross income is under $5,000 a year, a group can be considered tax exempt without filing the application form with the IRS).

If you already have 501c3 status (and have an IRS letter to prove it), you are not limited in the dollar amount you can raise. For example, the Red Cross raises millions each year to help  in disasters.

The IRS does have dollar thresholds when filing the annual Form 990. For example if your gross income is under $50,000 you file the simple on-line 990-N form once a year. If your gross income is $50,000-$200,000, you file the Form 990-EZ. The gross income determines what form you file, but does not limit the amount you can raise.

Check with whoever told you that you had to stay under a certain dollar amount. I think he/she may be confused.

Carol Topp, CPA

Preventing child abuse in your homeschool group

Hello Carol,

Thank you so much for all the insight you have offered! I am looking for information on background checks, and creating abuse prevention policy in our homeschool co-op. I have found vague info on how to protect children, but I am looking for written policy to implement. Could you please share with me any resources on this topic you may have.
Thank you for all your time,
Heather K.
Heather,
Thank you for your kind words. I’m glad the website was helpful.

I usually recommend homeschool leaders contact a large, local church and speak with the children’s director. They will have lots of information on background checks and policies. They may even share their policy with you.

National Center for Life and Liberty (NCLL) offers a short ebook “Preventing Child Abuse in Your Ministry” by Attorney David Gibbs III. You can download it for free (after giving, name, email, address and phone number) at http://www.ncll.org/resources/free/2014/august . It was quite good and offered general guidelines of what to have in a child abuse prevention policy, but it does not have a sample policy.
You might also join this Facebook group I belong to and ask your question there:
I Am a Homeschool Group Leader https://www.facebook.com/groups/72534255742/
I hope that helps,
Carol Topp, CPA

Church requires homeschool group to have insurance

insurance
Carol,
A local church is requiring us to have insurance to rent their facility.  That has never been needed before.  Do you have any comments about or guidance for us regarding that?  I’m curious about what you’ve seen with other organizations, suggestions for getting short or long term coverage, etc.  Just what you know off the top of your head.
Thanks so much!
Natalie B in Texas

 

Natalie,

I wrote an article on insurance for homeschool groups. There are 3 types in insurance a homeschool group might be interested in buying. Sounds like you need the general liability type.
Insurance for homeschool groups

Some homeschool groups have a hard time finding insurance, but one homeschool leader found a helpful insurance company.

These blog posts I’ve written about insurance will be helpful.
https://homeschoolcpa.com/blog/insurance/

I hope that helps!

Carol Topp, CPA