BREAKING THE CYCLE OF SEXUAL ABUSE RISK: The Role of the Insurance Industry
organizations, including churches, must take reasonable steps to prevent foreseeable risks. When the church gathers children, child sexual abuse is a foreseeable risk. Communication does not create the risk or liability; the risk of liability already exists. Churches need effective training and resources to address the risk of child sexual abuse. Too often, denominational leaders are either unable or unwilling to provide clear guidance to downstream churches concerning sexual abuse risk and appropriate steps for prevention. Most insurance professionals, by contrast, are able and willing.
INSURANCE ADVANTAGES Insurance carriers and brokers play a crucial role in risk management in churches and Christian ministries. From their unique position, they provide a clear voice related to abuse prevention and reporting for church and ministry programs.
When sexual abuse is prevented, no child is traumatized; no civil litigation ensues with the resulting loss of public trust, and no devastating headlines result. The cycle is broken through prevention, with training and effective resources deployed where the child is served— in church and ministry programs.
HOW PREVENTION IS INTRODUCED Sexual abuse prevention is knowable, but not intuitive. Church and ministry programs must receive effective training in order to prevent sexual abuse. Crisis provides an effective( but unfortunate) motivator; sadly, even crisis will not lead to an abuse-free environment in the church without effective instruction, and the primary‘ communicators’ of instruction are denominational leaders and insurance professionals. However, a closer look suggests insurance professionals are more effective than denominational and associational leaders.
DENOMINATIONAL CHALLENGES In most denominations, leaders have a background in ministry— not risk management. Even within denominations with a designated risk manager, there are barriers to change. The most common challenge relates to denominational leaders who are unwilling to communicate clear expectations or require change, whether polity permits or not, due to a fear that once new requirements are communicated, downstream churches must meet a higher bar— a standard that churches are already well below. Some denominational leaders fear that if they communicate expectations or standards they might be joined in lawsuits stemming from abuse allegations from a downstream church, embracing a misguided fear that communicating expectations will result in liability. This misconception remains a real barrier to internal change. Messaging expectations to downstream churches, however, does not create the standard of care— the standard of care already exists. All child-serving
Professional Risk Managers Insurance carriers and brokers are well-versed in risk management. Insurance professionals work with clients to evaluate and manage risks common to churches and ministries: property, security, cyber, financial fraud, personal injury, vandalism, transportation, employment... and sexual misconduct. Brokers and agents have a unique opportunity to discuss risk management with customers and prospects, as it is an expected part of the conversation to secure insurance coverage. Beyond addressing insurance needs, brokers and agents might discuss how they, and the carriers, can help prevent claims in the first place. This generally includes abuse prevention tools and resources made available to insureds. The best brokers and agents serve as risk managers in this consulting role. Drew Noss, Managing Director and Church / Non- Profit Practice Leader at Higginbotham and Associates, describes how Higginbotham prioritizes the evaluation of sexual abuse risk for church clients:“ We know sexual abuse risk is real for churches and ministries, which is why we do not wait for the church to request instruction. We initiate the discussion to ensure the ministry is taking the necessary steps for prevention; when the necessary safety system elements are not in place, our goal is to facilitate change.” An insurance carrier impacts change through two significant contexts— internally and externally. Internally, the carrier educates its staff of underwriters, actuaries and agents concerning sexual abuse risk and prevention. Andrew Shockey, VP of Philadelphia Insurance Companies, describes this first step:“ At Philadelphia Insurance Companies, we prioritize the training of our staff members to understand the risks common to religious organizations. The sexual abuse of children and vulnerable adults is a specific focus of instruction to better equip our insureds to navigate this risk.” Externally, the carrier provides education and prevention resources to customers through its Risk Control Department. This is accomplished by creating resources or partnering with risk management organizations.
More Than a Suggestion The carrier has tools at its disposal to drive abuse prevention efforts for its insureds that denominational leaders do not: premium pricing and insurance coverage limits. The best pricing on sexual misconduct liability insurance coverage is typically reserved for organizations taking active measures related to abuse prevention. Carriers might also require that an insured demonstrate use of a robust abuse prevention safety system— such as MinistrySafe— to obtain higher limits of misconduct coverage. Failure to show active use of such a system may result in minimal limits, or the insurer declining coverage altogether. churchexecutive. com CHURCH EXECUTIVE 5