LIABILITY INSURANCE

When discussing liability insurance, be sure to review these five categories:

1. General Liability
   

2. Employment Practices Liability
   

3. Ministers / Lay Counselors Errors & Omissions
   

4. Sexual Misconduct
   

5. Directors’ & Officers’ Liability

General Liability

Coverage – Insures your church and its operations against third party bodily injury and/or property damage. Please notify your Insurance Agent before going on Mission trips to make sure you are adequately covered with General Liability.

Cost – Determined by square footage of area occupied. 2,000 square feet will cost about $200 annually.

Employment Practices Liability

Coverage – Protection from lawsuits resulting from wrongful discharge, sexual misconduct, discrimination, etc.

Cost – $35-$75 per employee annually.

Ministers / Lay Counselors Errors & Omissions (also known as Clergy Professional Liability)

Coverage – Protects Ministers and Lay Counselors against claims and lawsuits arising from counseling services. Usual coverage is up to $1,000,000 in occurrence and in aggregate (total of all occurrences) annually.

Cost – Rates vary $50-$250 annually (based on # of clergy or professionals and type of care offered). Note – If you are outsourcing consulting to one particular person or entity, then we recommend you ask that person or entity to place you under their insurance coverage. Most underwriters have two requirements: 1) at least one staff member needs to have a seminary degree and 2) the church needs to submit a formal typed plan on childcare precautions.

Sexual Misconduct

Coverage – Protects church employees and volunteers against claims and lawsuits arising from sexual misconduct allegations. You should have this Insurance once the church has youth programming.

Cost – $500-$1,000 annually (based on # of volunteers and childcare/daycare programming).

Directors’ & Officers’ Liability

Coverage – Protects Board Members and Officers against alleged third party lawsuits for mismanagement. Typical coverage amount = $1,000,000 per occurrence.

Cost – $50-$250 annually.