Question: We have attempted to find liability insurance to cover our new Non-Profit Ministry. We do not have any real property and all of the proposals we have received have been primarily about covering property. We simply want liability coverage for our Staff, Board, and Volunteers as we offer services to international students at the local universities. I would like to know which companies to contact concerning liability coverage (or Liability only coverage) for NonProfit Ministries.
Thanks very much for your question Jon. As in many other areas of life, insurance is essential for religious nonprofits to have, keep current, and manage. Policies should be in place for employees, volunteers, and any other agents that may act in such a way that could result in liability for the organization. While property insurance covers the things you own, liability insurance covers the actions that could leave your religious nonprofit liable for damage to others (injuries, property, or reputation).
Many ministries wonder what type of liability insurance they need for their organization. Religious organizations have become increasingly susceptible to lawsuits and claims for false accusations of or (unfortunately sometimes) actual inappropriate behavior. You are dealing with a lot of people and as an organization that provides support to those in need – you accept the liability that comes with such interactions. More specifically, while ongoing and revolving engagement makes your ministry invaluable to the clientele you serve, it also exposes you to liabilities that other nonprofit organizations don’t face.
The good news is that liability insurance can help you manage this exposure. In addition to liability insurance, you should also have directors’ and officers’ liability coverage for decisions made by your board, officers, or trustees. Even though many states offer protection for volunteer board members of nonprofit organizations, there can still be significant defense costs should someone bring legal action against board members.
Finally, we recommend professional liability/counseling acts liability coverage because sometimes people accuse pastors and counselors of physical and/or emotional harm. This coverage provides for a claim arising from pastoral direction or counseling. Other types of coverage are available and may be appropriate depending on the level of need and activity your organization is involved in.
We suggest that on an annual basis you charge one or more committees of your nonprofit to prepare a prospectus of events and activities for the upcoming year, then perform a comprehensive review of the upcoming events, ventures, and activities to determine what needs may arise for specific coverage. If you do this, you will be better prepared to discuss all the aspects of your ministry and any possible exposures with your insurance agent so that you can obtain proper protection.
It is important to place coverage with an agent that is knowledgeable about insuring religious nonprofits. Developing a good relationship with your agent is critical. Openly discussing your needs and current situation with your agent will enable you to better prepare for future scenarios.
While we work with a number of insurance groups, for your particular needs we recommend Brotherhood Mutual https://www.brotherhoodmutual.com/insurance/. In reaching out to them, we believe they will be able to quote you a premium for specific liability insurance based upon your specific situation and facts.