Insurance Protection for CTA Chapters
Being in the role of a local leader carries with it significant responsibilities. The CTA Risk Management Department has designed this section to provide the resources to help you organize and handle all of the insurance needs of your chapter. Here you’ll find the following:
- The types of insurance coverage automatically provided by CTA to the chapter and local leaders, as well as the insurance coverage that a chapter should purchase on its own;
- A quick way to download a copy of CTA’s $1 million General Liability Certificate;
- The steps to take to report a chapter insurance claim;
- The features of the NEA Fidelity Bond program, which is automatically provided to chapters to cover fidelity losses due to a chapter officer’s or employee’s impropriety, or the theft of money or securities by a non-employee.
What Type of Insurance Does Your Chapter Need?
CTA purchases several business insurance policies on behalf of its chapters; meanwhile, each chapter must determine what additional insurance it needs.
In the following sections you’ll find a brief overview of the automatic and additional insurance coverage. For more details of each coverage, refer to the 2021 Chapter Insurance Program Booklet.
Automatic Chapter Insurance
As a leader of a CTA chapter, you’ll rest easier knowing that each chapter is covered by…
- General Liability Insurance – provides indemnification for the losses and expenses resulting from defending lawsuits alleging negligence by CTA or a CTA chapter.
- Business & Automobile Liability – protects CTA, the local chapter and UniServ Unit against bodily injury and property damage claims resulting from auto accidents involving local chapter employees, leaders, and CTA members while using their own vehicle for CTA business; similar coverage applies when renting a vehicle for CTA business. There is no coverage for the individual driver as liability coverage is provided by the driver's personal auto policy. Note: When renting a vehicle for CTA business, CTA chapter leaders and members should state on the rental agreement that they are renting the vehicle on CTA business in order to protect CTA and the local chapter or UniServ Unit.
- NEA Association Professional Liability – protects local chapters and their officers, chapter leaders and employees against financial loss for claims and suits arising out of their association-related activities.
- NEA Fidelity Bond Coverage – this policy covers fidelity losses due to a chapter officers’ or employees’ impropriety, or the theft of money or securities by a non-employee. Learn more...
Additional Chapter Insurance
While CTA’s risk management program provides important business insurance automatically to its chapters, depending on the activities, contractual agreements, operations and assets of your chapter, your chapter may need to purchase additional coverage.
The table summarizes the instances for which you may need additional insurance and the type of insurance that applies. For more details, refer to the 2021 Chapter Insurance Program Booklet.
||You Will or May Need…
Workers’ Compensation Insurance and
Employment Practices Liability Insurance
Coverage in the event any employee suffers a work-related illness or injury
Coverage in the event of employment-related litigation
|Lease or own office equipment
||Office Contents Insurance
||Protection in the event of losses arising from such events as theft or fire
|Own your office building
Coverage similar to CTA’s automatic General Liability Insurance, which does not apply to chapter-owned buildings
Protection against most risks to property, such as fire, theft and some weather damage.
Coverage for buiding and business personal property in the event of an earthquake
|Serve as a trustee or board member on a non-CTA board
||Directors’ and Officers’ Liability Insurance
||Liability coverage for individuals serving on outside boards or organizations
|Operate or sponsor a health or welfare plans
||Fiduciary Liability Insurance
||Protection for individuals who otherwise could be held personally liable for negligence in the performance of their duties as plan fiduciaries
|Maintain a database containing personal information
||Netword Security and Privacy Liability Insurance
||Protection for losses associated with unauthorized access to theft of personal data you hold
How Does My Chapter Report a Claim?
If your chapter experiences a loss or a situation arises for which you need to file a claim under one of the CTA-provided insurance policies, you should contact:
Carole Anne Luckenbach, CEBS, ARM, AIF – Manager
CTA Risk Management/Business Initiatives and Development Department
In addition, if it is an NEA Association Professional Liability Claim, you should also contact:
CTA Legal Department
Lastly, if the claim relates to any of the additional coverage obtained specifically for your chapter, you must contact the applicable insurer.
NOTE: Claims must be reported as soon as practicable for Fidelity Bond claims, and a proof of loss statement (claim) must be submitted within 120 days from the date of loss.
NEA Fidelity Bond
The NEA Fidelity Bond program – provided automatically to chapters – covers fidelity losses due to a chapter officers’ or employees’ impropriety, or the theft of money or securities by a non-employee. The Fidelity Bond consists of the policies:
- Labor Organization Bond and Employee Dishonesty Policy
- Crime Insurance Policy
For more information on these policies, please refer to the 2021 Chapter Insurance Program Booklet.
Note: The Fidelity Bond insurance policy covers state and local affiliate political action committees. The employee dishonesty policy and the crime insurance policy do not cover insurance trusts or pension plans, or other funds created by state or local affiliates.
How to File a Claim under the NEA Fidelity Bond
All potential claims must be reported at the earliest practical moment after discovery of any potential loss, regardless of the dollar amount involved in the potential loss. And, a proof-of-loss statement must be completed and provided to the carrier within four months of the initial discovery of the loss and must include documentation of the circumstances of loss, including copies of bank records and checks. To file a claim, contact Carole Anne Luckenbach, Manager of the CTA Risk Management/Business Initiatives and Development Department, at (650)552-5267. Note that coverage under the NEA Fidelity Bond Program is subject to the entire wording of the Program policies. More information is available in the 2021 Chapter Insurance Program Booklet.