SEXUAL ABUSE FIRE DRILL In classrooms across the country , school administrators lead faculty and students through mock disasters ( fires , shootings , bomb threats , tornados , etc .) 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 . In the midst of 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 vs . occurrence terms , among other issues . A fire drill related to sexual abuse insurance issues is essential for every ministry .
Insurance Fire Drill Take the opportunity to ‘ drill ’ your church or ministry ’ s preparedness for a sexual abuse claim as it relates to insurance coverage . For this exercise , involve your insurance agent or broker . This drill might reveal whether you are currently in relationship with a ‘ good ’ carrier , agent or broker . 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 ?
• Are the policies ‘ claims-made ’ or ‘ occurrence ’?
• Are there any gaps in coverage over the last 10 to 15 years ?
Failures Revealed in Crisis When a ministry fails to take the opportunity to ‘ drill ’ a foreseeable risk , deficiencies are typically revealed in the midst of a crisis . At this point , it is too late to make changes to insurance policies , coverages or limits .
Best Practice : Evaluate your preparedness in advance of a crisis — especially as it relates to insurance coverage .
Case Study : Several years ago , our law firm ( Love & Norris ) was retained by a large church addressing sexual abuse allegations related to a trusted staff member , with four female victims from 7 to 9 years of age . 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 . Church leaders made immediate efforts to address the trauma suffered by the victims . When asked , church leaders indicated that the ministry had insurance providing $ 1million /$ 3million in coverage . When asked whether their insurance carrier was notified when the initial ‘ facts ’ came to light , leaders replied ‘ no ’. At this point , it was too late to ‘ drill ’. Several significant shortcomings were quickly revealed . The underlying policy did not provide $ 1million /$ 3million in coverage . Upon closer inspection , the policy included a specific ‘ Sexual Misconduct ’ provision which limited coverage to $ 100K /$ 300K for sexual abuse claims . The church had no E & O , D & O or Umbrella / Excess coverages .
In the midst of this 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 insurance carrier tendered the $ 300K aggregate , satisfying its obligation under the policy . The church was forced to absorb defense costs and indemnity out-of-pocket , and quickly dwindled from a church with 36 full-time staff members to nine . Before the crisis hit , ministry leaders should have had effective preventative protocols in place , secured sufficient coverage limits and considered purchasing additional supplemental and umbrella / excess policies . When asked about the church ’ s insurance broker , the executive pastor said the relationship was inherited from a predecessor . In the midst of the crisis , no one knew the identity of the broker or his contact information . It was later learned that this broker knew very little about sexual abuse risk , preventative efforts or related coverage solutions .
Value of the Fire Drill The Fire Drill concept can be helpful in assessing insurance sufficiency and strategy . By thinking through a multi-victim allegation , a ministry can evaluate all insurance instruments for potential coverage ( CGL , D & O , E & O , Excess , Umbrella , etc .), confirm limits , and clearly understand limitations , if any , providing an opportunity to secure appropriate coverages and limits . For some ministries , other creative solutions might be available .
REPORTING REQUIREMENTS Ministry leaders should clearly understand state reporting requirements ; ministry leaders should also know when to notify their insurance carrier as well as what information to provide . A timely and proper notification to law enforcement and a ministry ’ s insurance carrier is far more likely to occur when staff members are trained to understand the risk of sexual abuse and the common behaviors of sexual abusers . When leaders fail to report allegations of child sexual abuse to civil or criminal authorities , they further victimize abuse survivors and open themselves up to the possibility of criminal prosecution for failure to report . When leaders receive information related to an allegation and fail to notify their carrier , coverage and representation may be jeopardized .
SUMMARY The stakes are high ; children are at risk . Ministry leaders must understand this very important aspect of protecting the flock and preventing abuse of children in their care . Understanding , however , is not enough ; ministry leaders must rely on good risk management partners — insurance carriers , agents and brokers — while navigating the ever-changing landscape of insurance products and strategies .
Kimberlee Norris and Gregory Love are partners in the Fort Worth , Texas law firm of Love & Norris [ www . LoveNorris . com ] and founders of MinistrySafe [ www . MinistrySafe . com ], providing child sexual abuse expertise to ministries worldwide . After representing victims of child sexual abuse for more than two decades , Love and Norris saw recurring , predictable patterns in predatory behavior . MinistrySafe grew out of their desire to place proactive tools into the hands of ministry professionals . Love and Norris teach the only graduate-level course on Preventing Sexual Abuse in Ministry Contexts as Visiting Faculty at Dallas Theological Seminary . churchexecutive . com STOP CHILD SEXUAL ABUSE • CHURCH EXECUTIVE 43