At our school, we not considered a sport under the athletic program but they consider us a club and therefore can still represent the school. As for insurance, we have purchased insurance through OCF to cover us just in case the school or school board goes this route...our school supports the team but not financially we do all the fundraising for our team for comp fee's, bus etc...

Hopefully what has happened to you is not the way all boards are going and I would be getting all the parents etc together to try and fight it.