Child Sexual Abuse Prevention Forum
What ’ s the No . 1 reason churches end up in litigation ?
Answer : Sexual abuse with a minor
A single lawsuit can derail a thriving , growing church and cost millions of dollars , as well as the loss of members and their faith in the safety of the church .
Such a catastrophe can happen to any church without proper risk management strategies in place .
Being prepared for the unexpected helps churches to prevent costly claims and devastating lawsuits , creating a secure atmosphere for worship and fellowship .
Sparks , CRM , CIC President AGFinancial Insurance
At AGFinancial Insurance , we don ’ t just sell insurance ; we provide the risk management strategies to help protect your church . Crucial to risk management is an understanding of why lawsuits and verdict amounts are increasing . First , 23 states either increased the statute of limitations or eliminated it altogether in 2019 . At present , 41 states are considering statute of limitations reform . Second , courts and juries are wanting to financially penalize those that have incidents , and the judgments are increasing . I know of three claims in the last year that were more than $ 3 million each . Third , plaintiff attorneys are looking at assets of the church versus the limit of insurance the church might have , so those with more equity need to have higher limits of liability . Finally , insurance companies aren ’ t covering or are limiting coverage for sexual molestation . In addition , they ’ re sometimes changing definitions to deny coverage or limit coverage for sexual misconduct with a minor .
So , what can your church do to better protect itself , and what strategies should you implement ?
Make sure that your insurance is placed with an insurance company that writes or specializes in writing churches . Ask how many churches they insure and what percentage of their business is churches . Similarly , make sure to work with an insurance agent that specializes in writing churches . Also , check your insurance
coverage for sexual misconduct . Do you have that coverage ? Is the limit less than what the coverage is for general liability ? Knowing that this is the No . 1 reason churches end up in litigation , why would you have a lower limit ? Does it limit coverage for minors ? Does it only provide coverage if a background check had been done ? If your agent can ’ t answer these questions , you might need to look for another agent . In most lawsuits , the plaintiff attorney is going to sue for negligence , which will then help trigger any insurance coverage . Further , in trying to hold the church responsible , they will sometimes plead causes of action for negligence against the church for their negligent supervision and / or negligent hiring . Many insurance companies might not want to provide coverage or the limits you need , as they know the risk and have seen an increase in the amount of settlements . We have implemented six steps to help minimize your sexual abuse liability and to provide the insurance carrier a reason to provide a higher limit . The below list should follow your community standard . Check with your local schools to see what they do to protect the children in their care , document it , and try to follow those same standards .
• A written application for all employees and every person working with minors , as well as anyone with a key to the church
• A thorough interview process
• A background check , including a criminal record check and sexual offender registry check
• Two documented reference checks , including any past church history and asking if they have any reservations about them working with minors
• A two-adult policy : at no time should a child be left alone with one adult .
• A six-month rule : all applicants must be in good standing with the church for at least six months before being allowed to work with minors .
Do you know who was insuring your church 20 years ago ?
I have had insurance companies ask for copies of older policies to prove coverage and limits were in place so they can provide a defense . Be sure to keep your insurance policies indefinitely , knowing the statute of limitations has changed recently and is likely to change again . The insurance marketplace and legal system is always changing , and your church needs to be proactive so it can be a viable ministry in the future .
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