Sexual abuse of a minor is the number one reason churches end up in court. It's a statistic that's been true for a number of years, according to attorney Richard R. Hammar. And churches must do all they can to prevent this type of tragedy. But churches also must be wise and purchase the right kind of insurance that will help cover any legal action that might occur because of abuse or alleged abuse on their property or during church-related events, trips, or activities.
Based on interviews with church insurance experts, attorneys, and a risk management specialist, Church Finance Today offers five guidelines to help churches of all sizes make sure they are financially prepared should the unthinkable ever happen.
1. Don't assume your general liability policy covers abuse claims. It usually does not.
"Some churches may not be aware that their typical church liability coverage doesn't cover sexual abuse or misconduct," said Eric Spacek, risk management and loss control director for GuideOne Insurance.