The Pennsylvania Department of Insurance approved the Pennsylvania School Boards Association's application for a license to operate School Boards Insurance Company of Pennsylvania, Inc., effective January 1, 2006. With this approval, PSBA becomes the first non-profit school boards association in the United States to own and operate a licensed insurance company.

SBIC of PA was formed by merging the assets and liabilities of PSBA's Bermuda-based School Boards Insurance Company, Ltd., with the association's newly established Pennsylvania insurance corporation. The new entity will enable the PSBA Insurance Trust to continue providing Pennsylvania school districts with risk management services, endorsed insurance products and legal liability and unemployment compensation insurance programs.