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Pastor, Church & Law

written by Richard R. Hammar, J.D., LL.M., CPA

Directors and Officers Insurance

Volume 2 . Chapter 6 . § 6-08.1
Key point 6-08.1. Directors and officers insurance provides coverage for various acts committed by board members in the course of their official duties. Such insurance may provide coverage for claims that are excluded under a church's general liability policy. It also may cover acts not protected by the federal and state limited immunity laws.

Should churches obtain "directors and officers" insurance coverage for the members of their board? Does the enactment of the Volunteer Protection Act (and corresponding state laws) make such insurance unnecessary? Not at all. The legal protection provided by these laws is not absolute. They do not apply if a board member receives any form of compensation (other than travel expense reimbursements), and ...

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