Good insurance partners — agents / brokers Do we have the right insurance agent or broker ? This critical question becomes more relevant each passing year . Sexual Misconduct coverage has become a very complicated environment : changes in policy terms , unbundling certain forms of sexual misconduct , expansion of application processes , state-specific reporting and prevention requirements , third-party use issues , and more . Some insurance agents specialize in coverages related to elite athletes , knowing the risks involved and where to shop for appropriate insurance solutions from the right carriers in the right coverage combinations . Other agents specialize in coverages related to music events , art auctions , aircraft , and so on . Given the changes in the landscape related to sexual abuse risk , it ’ s imperative that church leaders work with insurance professionals who specialize in serving churches — particularly where sexual misconduct coverage is concerned .
Case study # 3 After ‘ firing ’ its prior agent ( See Case study # 2 ), the same large church in Tennessee engaged an insurance broker very familiar with risks common to churches . A representative from the broker completed a preliminary risk assessment and performed a site visit . With this information in hand , the insurance professional :
• Created a physical plant risk mitigation plan — and secured coverage ;
• Made recommendations related to cyber security — and secured cyber coverage ;
• Arranged for an outside consultant to provide an active-shooter plan and training ;
• Provided recommended resources to address child sexual abuse risk ; and
• Negotiated appropriate coverages and policy limits , notwithstanding the prior claim .
The right insurance professional ( agent or broker ) can have an enormous impact , allowing a church to focus on ministry in a childsafe environment .
Good insurance partners — carriers Often a church will purchase insurance products directly through an agent or representative of an insurance carrier . Again , churches need to ask : do we have the right insurance carrier ? Some insurance carriers work almost exclusively with churches or have significant business segments dedicated to churches . These insurance carriers are optimal for several reasons :
• The company provides policies tailored to church programming ;
• The policies provide coverages for risks common to churches ( i . e ., cyber , theft );
• Sexual misconduct coverages are tailored to common church claims ;
• Policies often include mitigation funds ( i . e ., counseling , public relations ); and
• The carrier ’ s loss control professionals are familiar with navigating abuse issues .
The right insurance broker will know which carriers provide the right services , policies and resources . If a church chooses to interact directly with an insurance carrier , church leaders should confirm that the carrier has significant experience in the church marketplace and is able to navigate ongoing changes in the landscape .
Sufficient insurance coverage After the right insurance agent and carrier are secured , every church should ask : do we have sufficient insurance coverage ? Keep in mind ; there is no one-size-fits-all plan for insurance coverage . A mega-church with an associated private school might have a blend of policies and umbrellas providing layers of coverage , which looks much different than the coverage solution for a rural Cowboy Church . Ministry leaders should know that they have the right combination of policies from an insurance carrier conversant with common ministry risks . When a church has the right agent , broker and carrier , the question of sufficient coverage can be addressed .
Third-party facility use Boy Scouts of America has settled more than 82,000 child sexual abuse claims for just short of $ 3 billion . A significant portion of the settlement will be paid by churches and denominations that chartered or hosted Boy Scout Troops — hence third-party liability . This circumstance has forced the entire insurance industry to look closely at churches permitting third-party use of church properties and facilities . Renewal applications now inquire about third-party facility use , third-party facility policies and third-party facility agreements . Insurance policies are incorporating conditions for coverage :
• Requiring the third-party to implement effective child safety measures ;
• Requiring the third-party to maintain a specific level of insurance coverage ; and
• Requiring the third-party to have the church named as an additional insured .
Navigating third-party liability risk is another reason to work with the right insurance professional .
Programs for Registered Sex Offenders ( RSOs ) or ‘ known offenders ’ Many churches have or are evaluating programs to assimilate known sex offenders . Given the risks associated with known offenders attending or participating in church activities , the insurance industry is adapting its processes and products . It is now common for an insurance application to inquire whether a church provides ministry services to known offenders , describing its policies and practices for doing so . Some insurance policies will simply omit coverage related to the risk stemming from known offenders ; others will require conditions for coverage . If a church has — or is considering — an RSO program or process for allowing the participation of known offenders , insurance coverage might be impacted : another reason to work with the right insurance professional .
SUMMARY The attorneys at MinistrySafe have spent decades equipping churches and Christian ministries to understand , prevent and navigate sexual abuse risk . Sadly , churches lacking good instruction and guidance become case studies for the next sexual abuse crisis . Excellent preventative resources ( available at www . MinistrySafe . com ) are the place to start , but ongoing relationships with informed insurance agents , brokers and carriers are imperative for churches navigating the changing landscape of sexual misconduct arising in ministry contexts .
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 .
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The 2022 Praesidium Annual Report churchexecutive . com STOP CHILD SEXUAL ABUSE • CHURCH EXECUTIVE 61