Sexual abuse fire drill In classrooms across the country , school administrators lead faculty and students through mock disasters ( fires , shootings , bomb threats , tornadoes , and so on ) to ensure the existence of sound safety plans , communicate expectations to all involved , and determine any necessary changes or improvements . A failure to drill a foreseeable disaster can lead to catastrophic results , generally with little or no warning . Amid a crisis , it ’ s too late to prepare ; the catastrophic event simply reveals whether the ministry took reasonable steps to prepare for the foreseeable event . One of the most common deficiencies revealed in a sexual abuse crisis relates to insurance : incorrect coverages , insufficient limits , failure to notify the carrier , and claims-made versus occurrence terms , among other issues . A fire drill related to sexual abuse insurance issues is essential for every ministry .
Insurance fire drill Assume your church receives a sexual abuse allegation . For purposes of this exercise , assume the allegation involves multiple victims and the accused is a trusted staff member or volunteer . As to existing insurance coverage , the drill is designed to answer these questions :
• Does your church have the correct coverages for a multi-victim claim ?
• Does your church have sufficient coverage ( types and limits ) for a multi-victim claim ?
• Are there endorsements , riders , limitations or qualifications related to sexual abuse coverage ?
The majority of ministries purchase insurance coverage through an insurance agent or broker . During the insurance purchase or renewal process , the primary coverage issue negotiated relates to Property & Casualty ( P & C ). The P & C portion of the premium will typically account for the bulk of the total insurance premium . Without an explicit Sexual Misconduct endorsement , sexual abuse claims typically fall within the General Liability policy coverage — most general liability coverage will now include a separate sexual misconduct section . Few policyholders are familiar with the terms of the General Liability policy , the limits related to any sexual abuse claim , or terms requiring notice to the carrier when a ministry receives ‘ facts that could give rise to a claim .’
Failures revealed in crisis When a ministry fails to take the opportunity to ‘ drill ’ a foreseeable risk , deficiencies are revealed when a crisis arises . Several years ago , our law firm ( Love & Norris ) was retained by a large church facing sexual abuse allegations related to a trusted staff member , with four female victims from age 7 to 9 . The fact patterns related to the abuse were conclusive and horrific , and we advised immediate care and support for the abuse survivors and their families . Initially , the allegations had not been reported to law enforcement , in violation of mandatory state reporting requirements . Some months later , the outcries were reported . Clearly , the church had limited child protection protocols in place , and church leaders had failed to act appropriately and promptly when the allegations first came to light . In addition , leaders had limited understanding of their insurance coverage . When asked , church leaders indicated that the ministry had insurance providing $ 1 million / $ 3 million in coverage . When asked whether their insurance carrier was notified when the initial ‘ facts ’ came to light ( several months earlier ), leaders replied ‘ no .’ At this point , it was too late to ‘ drill .’ Several significant shortcomings were quickly revealed .
# 1 : No relationship with a knowledgeable agent First , church leaders could not recall the name of their insurance agent . As a result , the ministry could not quickly and easily understand what coverages were in place : Commercial General Liability Policy ( CGL ), Errors & Omissions Policy ( E & O ), Directors & Officers Policy ( D & O ), and / or Umbrella Policy . This delay was critical : the crisis unfolded on a Saturday and escalated quickly . A church must have an agent that is knowledgeable about the risks facing a ministry ( including child sexual abuse ) and be accessible to navigate issues that arise — at the time of purchase and when an outcry or allegation occurs .
# 2 : Insufficient insurance coverage Second , the underlying policy did not provide $ 1 million / $ 3 million in coverage . Upon closer inspection , the policy included a specific ‘ Sexual Misconduct ’ provision which limited coverage to $ 100,000 / $ 300,000 for sexual abuse claims . The church had no E & O , D & O or Umbrella coverages . In the midst of crisis , these leaders learned the church ’ s insurance coverage was grossly inadequate , and it was too late to supplement or improve coverage amounts . In this case , the churchexecutive . com STOP CHILD SEXUAL ABUSE • CHURCH EXECUTIVE 27