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Church's Insurance Policy Prevents Coverage

Sexual injuries to three minors at a church preschool aren't covered by church's insurance policy.

North Carolina
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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.

* A federal district court in North Carolina ruled that an insurance company properly denied coverage to a church for sexual injuries to three minors at a church-owned preschool due to a sexual misconduct exclusion in the church's insurance policy. A guardian of three minor children sued a church, its preschool, and a regional denominational ...

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Posted:
  • July 1, 2011

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