Liability Insurance
Additional Insurance Tips to Remember
- Don’t buy a limit of less than $1,000,000. It costs very little more than lower limits, and in this day of high judgements you shouldn’t risk having less. In fact, we normally recommend that in addition to a $1,000,000 General Liability limit, you also purchase at least a $1,000,000 Umbrella Policy.
- Be sure sexual molestation coverage is included. Most insurance companies won’t give you this coverage, and many of the ones that do limit it to an amount of $300,000 or $500,000! Don’t accept this. You need no less than $1,000,000. Many churches every year are accused of sexual misconduct of some sort. Most are innocent, but if you have to defend yourself that won’t matter. Besides, if a judgement is rendered, you need the higher limit!
- Buy counselor’s liability insurance to protect your pastor and staff against lawsuits which might arise from their counseling activities. Again, many insurance companies don’t offer this, but your people shouldn’t be without it. It’s very inexpensive.
- You need directors’ and officers’ liability coverage. General Liability (the basic coverage everyone has) covers bodily injury and property damage. D&O covers the church for the leaders errors (bad decisions) or omissions (failing to make a decision when one was needed). For corporations this coverage can cost thousands, for churches its very little. Don’t go without it.
