July 11, 2024

AIM Insurance for Debit and Secured Credit Cards

Insurance is an important part of any business. It protects your PTA in many ways. Per WSPTA policy 3.11: A local PTA or council must carry Fidelity Bond insurance in order to disburse PTA funds using electronic payments, secured credit or debit cards.

The below information is directly from Association Insurance Management, Inc. (AIM) regarding the use of secured credit cards and debit cards. Many PTAs in Washington use AIM for their insurance coverage. If your PTA uses a different insurance company, please check with your PTA’s insurance provider for more information on their coverage.

AIM does not strictly discourage the use of credit cards or debit cards, however, a check signed by 2 officers is still the most secure way to make disbursements of your PTA’s money.

AIM has Fidelity Bond coverage available to PTAs. Under Fidelity Bond coverage your funds are covered from embezzlement by anyone that you entrust with your organization’s money if you meet the requirements set by AIM. It also covers scams in most cases. Your PTA will need to decide how much coverage you will be purchasing, coverage ranges from $10,000 to $250,000, with a $250 deductible on all claims filed under this policy.

To file a claim under the Fidelity Bond coverage your PTA must comply with the following requirements:

  1. Your organization must conduct an annual audit/review of the books by an audit/review committee or qualified accountant.
  2. The monthly bank statements must be reviewed and signed by someone who does not have authorization to sign checks or other financial transactions.

Coverage may be voided if the above requirements or conditions are not followed.


Q: Will credit and debit card transactions be covered in the case of a PTA falling victim to a scam?

A: There are certain scenarios covered under fraud such as emails posing as a board of directors requesting funds be paid to a certain individual from PTA bank account, these claims are covered in most instances.  However, there are situations where a payment is made to an individual posing to sell something/service, which is fake, and those claims are not covered.

Q: Will credit and debit card transactions be covered in case of embezzlement?

A: If the requirements of the policy have been met, embezzlement will be covered no different than checks.

Q: Does AIM recommend either a secured credit or debit card over the other?

A: Yes, AIM recommends credit cards over debit cards. Most credit card companies have a fraud dept that will respond pretty quickly.  In most cases they will return the funds to your card pending investigation.  With Debit cards, not all banks will return funds pending investigation.  Often if your bank account is depleted, it may stay that way until the investigation is complete, leaving the PTA without funds.

Do you have further questions about your AIM coverage? Please contact AIM:

800-876-4044 or 214-360-0801



Category: Leadership , Membership

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