Key Point 8-30. Most church general liability insurance policies exclude employment practices. This means that many churches face a potentially significant uninsured risk. Employment practices liability insurance is available to cover most employment-related claims.
Employment disputes are one of the most common sources of litigation involving churches. However, many churches are not insured against this risk, often because of an assumption that the church's comprehensive general liability (CGL) policy covers these claims. In many cases, this is not the case since the typical CGL policy excludes "employment practices."
How can church leaders respond to this potentially uninsured risk? The best response is twofold:
Implement an effective risk management program that addresses the most common types of employer liability. This text contains many suggestions that will assist church leaders in implementing a risk management program.
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