The insurance gap that spelled the end of a Penetanguishene fundraising group was little more than a misunderstanding, says a municipal official.

Town treasurer Jim Schaefer told The Mirror there had been no change in coverage for the Friends of the Penetanguishene Youth, a group that had raised $289,000 since 2000 for local causes, including a skateboard park and outdoor basketball court.

“We have provisions within our insurance … for coverage of volunteers for the town,” he said, explaining town events enjoy liability protection. “(The Friends) have the protection they thought they didn’t have.”

Barbe Dodson, chairperson of the Friends group, isn’t buying it. She said she received written word that the organization was not considered a committee of the town and, therefore, did not fall under the town’s insurance coverage.

Schaefer confirmed the group’s non-committee status, noting the Lottery and Gaming Act prohibits municipalities from profiting from raffle ticket sales or bingos, such as those operated by the Friends.

Even so, he insisted insurance did not have to become a make-or-break issue.

“Probably it escalated a lot faster than it should have,” he said, referring to the five-day period between when the Friends learned of the insurance issue and when the group dissolved.

The confusion, he said, centres on the distinction between coverage of the group and coverage of individual town volunteers. No single member of the Friends would ever have faced financial ruin if one of the group’s activities had resulted in a lawsuit, Schaefer emphasized.

“Every town has volunteers,” he said. “As volunteers of the town, if there was anything untoward that happened and they were named in a suit … town coverage would have come to the fore.”

He cited the example of the cruise outings the Friends regularly organized. Any incident during the bus trip to the departure point, on the cruise itself, or during the ride home would have been covered.

“We have gone over a kind of a shopping list of the activities we know they were engaged in with our insurer,” said Schaefer. “And he said, ‘No problem, no problem, no problem.’”

Despite the turn the relationship between the Friends and the town has taken, Schaefer commended the group for its contributions to Penetanguishene.

“All the Friends have done good work, and we’re very supportive of volunteers,” he said.

“Ultimately, what this boils down to is a large misunderstanding.”

Schaefer said the only positive to have come from this situation is the clarification it has provided regarding town volunteers and insurance: “Now we have a better understanding of the issue.”

That’s likely too late for the Friends. Though Schaefer extended one last olive branch in hopes that representatives of the group will discuss their concerns with him and, perhaps, resume their work, that appears to be a dead end.

Dodson said she appreciated the offer, but surmised the obstacles are likely “insurmountable because we have a lack of faith, a lack of trust.”