Frequently Asked Questions

If our priests are allowed to be married, do we really need to carry sexual misconduct Liability?

YES! Just because a priest or any other person in your parish is married, doesn’t automatically preclude them from committing inappropriate acts. It is a dangerous misconception to believe that all pedophiles are single persons, or that they would be easy to suspect. In addition, priests are not the only target of church related sexual misconduct cases. Most parishes have sunday school teachers, youth coordinators, etc. Your parish needs to remember that in these cases, you don’t actually have to do anything wrong…someone just has to SAY that you did.

If our board member positions are elected and un-paid positions, why do we need Directors & Officers liability coverage?

As board members of your church, you have been elected to act and make decisions on behalf of its parishioners. All of your decisions can have ramifications that affect the organization. If the members of the parish feel that you haven’t acted in their best interest, they have a legal right to file suit against the board members. This is not the same as suing the church, this would be a personal lawsuit against the board members, and their PERSONAL ASSETS WOULD BE ON THE TABLE for any judgments found against them. One of the most common reasons a suit like this occurs is a board not carrying enough insurance on the church’s property.
The following article provides some additional information about why non-profit organizations need Directors & Officers Liability coverage:

How do we know how much coverage we need on our building(s)?

You don’t. That is why you put your trust in an agent with experience in estimating the reconstruction costs of church buildings. Insurance Systems doesn’t just do a “copy-quote” on your existing insurance policy. We do a thorough underwriting review of what coverage your church needs. This includes estimating the reconstruction cost of your buildings. Our evaluations come from professionals who are experienced in rating churches, and have the training necessary to determine the levels of coverage needed.

What types of items should be “scheduled” on the policy, and what does that mean?

The term scheduled on an insurance policy typically refers to items that are simply listed on the policy with a set value next to them. What this does is provide the broadest available coverage on any of those specific items. This could include, fine arts items, jewelry, electronics, musical equipment, etc. The basic property form will cover these items as “contents” without scheduling them, but only for certain types of losses (ie fire, lightening, tornado, etc.). Scheduling items on the policy is more expensive, however the policy will then cover them on an “All-risk” basis.

Our church owns a home that our Pastor lives in. Since the home is on the church’s insurance policy, will the Pastor’s personal belongings be covered in the event of a loss?

NO. Since the church’s insurance policy is written to protect the church’s property, it will only pay for losses to items belonging to the church. The Pastor or any other person that lives in or rents the home is responsible for carrying an insurance policy on their contents. This is more commonly referred to as a “renter’s” policy. These policies are similar to a homeowner’s policy, but are written for contents only. In addition, the renter’s policy will cover the Pastor for his or her personal liability. This would include any acts outside of pastoral or church related duties. These policies are typically very inexpensive, averaging in the $100-$300/year range.