Prior articles in our " Stop Sexual Abuse " Series in Church Executive have addressed a variety of issues and elements related to an effective safety system ; this article will discuss the ever-changing environment involving sexual abuse risk and insurance . Too often , ministry leaders lack an understanding of the insurance industry : terms , concepts , coverages , and roles of insurance players . In days past , that lack of understanding could be overlooked ; no longer . In today ’ s climate related to child sexual abuse , the stakes are too high and the costs of making a mistake are too large . Church and ministry leaders must become good consumers and choose good partners to navigate this ever-changing landscape . The reality of this risk has never been more evident . Avoiding common mistakes can prevent trauma to children and save resources meant to promote ministry fruitfulness .
UNDERSTAND INSURANCE ROLES A good starting place is a description of insurance roles or players . In conversations with ministry leaders , we find ourselves explaining the differences between an insurance carrier , an insurance agent and an insurance broker . Being a good consumer starts with an understanding of the insurance partners with whom ministry leaders will interact .
Insurance Carrier An insurance carrier is a company that finances or ‘ carries ’ the risk ; an entity that issues the insurance policy . Some insurance carriers ‘ write coverage ’ for a broad variety of industries — from international shipping to sports injuries . Other insurance carriers are more specialized , choosing instead to focus on one or more particular marketplaces , like churches , social services or camps . Insurance carriers that specialize in the church and ministry sector develop products that are designed to meet the needs and risks unique to church and ministry programs .
Insurance Agent An insurance agent works for an insurance company . On behalf of the insurance company , an insurance agent works with an applicant ( i . e ., church or ministry ) to negotiate and purchase insurance products offered by the agent ’ s particular insurance carrier .
Insurance Broker An insurance broker works for the insurance applicant ( i . e ., church or ministry ). Like an insurance agent , an insurance broker will assist the applicant in negotiating and purchasing insurance products . Unlike the agent , the broker is not limited to a particular carrier ; a broker can shop the church ’ s insurance needs among competing insurance carriers .
CHOOSE A ‘ GOOD ’ CARRIER
Best Practice : purchase coverage from an insurance carrier that regularly works with churches . Approximately 10 insurance carriers provide coverage to churches , ministries and child-serving organizations as a specialization or business silo . It is our strong recommendation that churches purchase within this group . These carriers understand the particular insurance needs of churches and ministries and create insurance products ( including coverages and policies ) based upon these unique needs .
Case Study : A mega church purchased insurance from a carrier that did not specialize in the church / ministry marketplace . The church ’ s primary concern was coverage for roof and storm damage related to a large campus . The best combination of roof and storm coverage for the property was provided by an insurance carrier that did not typically write coverage or create insurance products for churches .
Consequently , the policy did not have the usual provisions for cyber-attack , child sexual abuse or embezzlement . This deficiency was not revealed until a multivictim child sexual abuse claim was filed .
Within the group of insurance carriers focusing on providing coverage to churches and ministries , many provide policies with standard types of coverages that a ministry must have in place . The church must then negotiate limits and other unique coverage issues . Many insurance carriers NOT within this group are intentionally pulling out of the ministry marketplace , or at a minimum , choosing to NOT offer sexual misconduct coverage .
CHOOSE A ‘ GOOD ’ AGENT or BROKER A good insurance agent or broker will be familiar with an applicant ’ s risk management and insurance needs . A good agent or broker should ( 1 ) understand child safety risks ; ( 2 ) be able to make risk mitigation recommendations ; ( 3 ) understand the church ’ s insurance needs — both coverages and limits ; ( 4 ) navigate the application and renewal process ; ( 5 ) understand the insurance carrier ’ s policy offerings vis-à-vis the church ’ s needs ; and ( 6 ) understand how to shepherd the reporting of a child sexual abuse allegation to law enforcement authorities and the insurance carrier . Ministry leaders must become better consumers . This starts with working with an agent or broker who understands sexual abuse risk , sexual abuse risk management and sexual abuse policy terms .
Best Practice : work with an insurance agent or broker who understands sexual abuse risk .
Case Study : A nationwide outdoor ministry asked for a review of insurance coverage related to child sexual abuse risk . This ministry had been renewing coverage with the same insurance carrier for eight years relying on an insurance broker not familiar with sexual abuse risk or the unique terms of coverage . We reported to the ministry executive team that the organization had Sexual Misconduct Coverage , but this coverage was narrowly defined to include sexual harassment only ; the organization had no child sexual abuse coverage . Worse , they unknowingly had no coverage for the preceding eight years . Though the ministry changed brokers and obtained the correct coverages moving forward , this outdoor ministry has no child sexual abuse coverage for any allegation that may arise from the previous eight years .
LEARN THE TYPES OF COVERAGES In 2010 , insurance coverage for a child sexual abuse claim would be found within the overall limits in the general liability section of a policy . No longer . A variety of coverages associated with Sexual Misconduct now exist . Ministry leaders : be careful here ; read the terms closely . There are several types of ‘ Sexual Misconduct ’ that might be addressed by an insurance policy , including sexual harassment , sexual assault , inappropriate reporting of sexual abuse , improper supervision of a registered sex offender , inappropriate sexual relationships ( i . e ., affairs ), peer sexual abuse , and inappropriate boundaries by counselors or clergy . Read the policy terms carefully to ensure that child sexual abuse is a covered risk ( see above Case Study ).
PREPARE FOR APPLICATION CHANGES In the current insurance marketplace , insurance carriers know that abuse and molestation coverage is important to churches . Conversely , insurance carriers are aware that many churches and ministries are employing inadequate or ineffective efforts meant to prevent child sexual abuse . To access sexual abuse coverages and desired limits , churches must now demonstrate preparedness for sexual abuse risk , which occurs in the context of the application process . churchexecutive . com STOP CHILD SEXUAL ABUSE • CHURCH EXECUTIVE 41