III. Risk Management
A. Minimum Insurance Levels for Covenant Congregations | B. Managing Risk, Safety, & Insurance in the Congregation | C. Sexual Harassment and Abuse

 

A. Minimum Insurance Levels For Covenant Congregations

Introduction:
In the maze of insurance coverage, a congregation needs to adequately cover a range of issues.

Presentation:
The denomination and many regional conferences have insurance coverage through GuideOne Risk Group. There is wisdom in congregations having the same carrier to prevent squabbles between insurance carriers when congregations, conference and denomination typically have similar positions and needs. GuideOne has a standard set of coverage referred to as "The Cornerstone Package". It is possible for a congregation to have the package written by a local agent. The following are the suggested minimum coverage levels.

Property Coverage on Buildings and Contents
Should represent the full replacement value of these items. The property does not need to burn to the ground in order to be a total loss. It is not necessary to insure the value of the land.

Flood Insurance
You should check a Federal Insurance Rate Map (FIRM) and other sources to determine if you are in an area subject to periodic flooding. If so, you should check on specific coverage adequate to cover your property and contents in the event of a flood.

Liability Coverage For Premises and Operations
$1,000,000 for each occurrence
$2,000,000 or $3,000,000 aggregate (total)

Church Automobile Insurance
Coverage needs to include not only church owned vehicles but also "non-owned" and "hired auto" coverage.
- $1,000,000 Combined Single Limit Bodily Injury and Property Damage Liability
- $1,000,000 Uninsured/Underinsured Motorists Liability
- $5,000 Medical Payments
- Appropriate level of Physical Damage Coverage-"Comprehensive and Collision"

Medical Payments
$5,000 each occurrence
Church Theft and Fidelity Bond
$1,000 to $5,000 (Based on the size of the church) Church theft (primarily for cash)
$10,000 Coverage for loss sustained by the Church through fraudulent or dishonest acts committed by an employee or other duly elected official of the Church.

Church Bond
$10,000 Limit

Also make sure basic risk management practices are followed such as
- Two signatures on checks
- Don't have bank statements mailed to the same person who writes checks
- Have two or more people count receipts
- Make bank deposits the same day they are received

Umbrella
Larger churches should consider this coverage with limits between $1,000,000 and $5,000,000.

Workers Compensation
This coverage is mandatory in most states. The limits are determined by the Industrial Commission of each state. This coverage should be purchased. Do not rely on the group health insurance to protect your pastor on this issue.

Sexual Misconduct Liability
$250,000 for each occurrence
$500,000 Annual Aggregate

Note: The Limits above are suggested minimums. Higher limits may be appropriate.
For more information, contact the Director of Technical Services at 773-784-3000.