Insurance

Insurance

Key point 10-16.7. A liability insurance policy provides a church with a legal defense to lawsuits claiming that the church is responsible for an injury, and it will pay any adverse settlement or judgment up to the limit specified in the policy. Liability insurance policies exclude a number of claims. For example, some policies exclude injuries based on criminal or intentional acts and claims for punitive damages. A church has an obligation to promptly notify its insurer of any potential claim, and to cooperate with the insurer in its investigation of claims.

Negligence as a Basis for Liability

* The Ohio Supreme Court ruled that a church's liability insurance policy covered allegations that the church was responsible, on the basis of negligence, for the sexual misconduct of a church employee. An adult male claimed that he contracted the human immunodeficiency virus ("HIV") ...