protecting the church: insurance

INSURANCE AND LIABILITY COVERAGE FOR THE CHURCH:

INSURANCE AND LIABILITY COVERAGE FOR THE CHURCH THE PROTECTION THE CHURCH NEEDS IN TODAY’S WORLD Group One: Michael Oliver, Brian Chilton, and Alex Long Slides by and Narrated by: Michael Oliver

TYPES OF INSURANCE:

In a personal interview with an insurance agent, I found that there were at least 10 different types of insurance a church needs. TYPES OF INSURANCE

TYPES OF INSURANCE:

PREMISE LIABILITY If a church rents the buildings or land If a church owns the buildings or land PROPERTY LIABILITY Covers content and equipment Whether renting or owning the building Covers theft Fire Vandalism TYPES OF INSURANCE

TYPES OF INSURANCE:

Real Property This is for the building that is owned Usually unique to a church Endorsement-Pastoral Counseling Liability Coverage Coverage is for when someone tries to sue for something the pastor has said in a counseling session and there is a negative result TYPES OF INSURANCE

TYPES OF INSURANCE:

D&O, Directors and Officers Liability Coverage Protects Deacons, Elders, or anyone who sets on the Board from being sued. Sexual and Molestation Defense Coverage It is for defense coverage only There is also the requirements of preventative measures to be put into place TYPES OF INSURANCE

TYPES OF INSURANCE:

Endorsement Coverage This covers the pastors and staffs personal property on church premises Church Vehicles Coverage More churches are moving away from having church vehicles because of liability reasons Money and Security Coverage This coverage is a specific amount according to church size TYPES OF INSURANCE

TYPES OF INSURANCE:

Workers Compensation This is for people who work at the church and are getting paid a salary or wage TYPES OF INSURANCE

WHY THE NEED FOR PROTECTION?:

IN TODAY’S WORLD THERE IS AN EVER GROWING NEED TO PROTECT NOT ONLY THE BUILDING BUT THE PASTOR AND STAFF AS WELL. THE NEED FOR INSURANCE COVERAGE IS NOT ONLY RESTRICTED TO STAFF BUT ALSO HAS TO COVER MEMBERS AS WELL. WHY THE NEED FOR PROTECTION?

WHY THE NEED FOR PROTECTION?:

Arson attacks A Belfast Telegraph from June 22, 2002 reports “a sharp rise in the incidents of arson – attacks in Hillhall in Lisburn cost £800,000 to repair and Newmills Presbyterian Church, Portadown , cost £300,000.” Vandalism The same telegraph gave the report that “vandalism bill increased by 15% to top £1.7m.” WHY THE NEED FOR PROTECTION?

WHY THE NEED FOR PROTECTION?:

Premise Liability The Belfast Telegraph went on to make a rather chilling statement, it said, “Personal attacks against the clergy and church people were also a cause for concern last year.” WHY THE NEED FOR PROTECTION?

The Cost:

At the church I attend I interviewed Philip McGaha , Minister of Administration, on the type of insurance, claims, and cost of insurance. He told me that In the past 10 years there has been 11 claims that the church has turned into the insurance, 2 of those were a no pay out. The claims were Lightening Strikes Personal injury Vandalism The Cost

The Cost:

As a result of these claims The insurance company wants to raise the deductible from $500 to $1000 The church pays $33,000 annually for the insurance It has paid a little bit over $300,000 in the last 10 years The claims that have been paid out total approximately $30,000. About 1/10 of the amount paid in premiums to the insurance company for the last 10 years The Cost

The Cost:

Not all incidents are turned in to the insurance company If the amount of the damage is only 200-300 dollars higher the committee will take a hard look at it and determine if it should be turned in. If not then the church pays for it out of pocket. The Cost

The Cost:

The church has taken measures to insure that incidents will be kept at a minimum Fire extinguishers are on an annual contract with a company to insure that they are in proper working order Floors are waxed with a non-slip wax that has a fine grit to it to help keep people from slipping and falling Floor wet signs are put out to let the people know if the floor is wet in certain areas Hazardous areas are marked off and announced ahead of time to let people know not to go into certain areas The Cost

The Cost:

Unfortunately some churches, in order to save money have cut out some of their insurance coverage This can do more harm than good to a church In an article called “Insurance Assurance,” and example of why not to cut insurance was given A Minnesota congregation found out the hard way when a man sued the church for being sexually abused by the pastor 30 years earlier. The award was for $644,000 but the church did not have adequate insurance to cover all of this. The insurance company agreed to pay $215,000 and the church sold its furniture and raised a total of $200,000. The man agreed to take this amount so the church would not have to sale the building and land. The Cost

Count The Cost:

Churches must count the cost before cutting insurance They should go over their policy with the insurance man to make sure they are getting the best possible insurance for the best possible price. Count The Cost

Bib Page:

n.d. “Vandals force up insurance for churches.” Belfast Telegraph LexisNexis Academic, EBSCOhost http ://ezproxy.gardner-webb.edu/login?url=http://search.ebscohost.com (accessed April 6, 2011) Littleton, Jeanette Gardner. 2000. “Insurance Assurance.” Your Church 46, no. 4: 34. MasterFILE Premier, EBSCOhost (accessed April 6, 2011). (Permalink): http://ezproxy.gardner-webb.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=f5h&AN=3454708&site=ehost-live Snider, Tracy. 2011. Owner of Snider Insurance, Statesville, North Carolina. Personal Interview on April 5, 2011 McGaha , Philip. 2011. Minister of Administration at Western Avenue Baptist Church, Statesville, North Carolina. Personal Interview on April 6, 2001. Bib Page