| How many times have we heard this about our church? Child Abuse could never happen at my church. We know everyone in our church. We use background checks! No one would ever abuse a child at our church. Yet we are in the middle of the worst outbreak of child abuse we have ever seen. Every day more stories are reported, more victims come forward, more lawsuits are filed. Some states are lifting the statute of limitations allowing anyone to file a suit. Others are introducing legislation, changing the duties and obligations of youth serving organizations. Boy scouts, YMCAs, sports teams and churches are all viewed with a greater responsibility to keep youth safe. How prepared are you to deal with a case of abuse at your church? If you are not sure, now is the best time to act! We can help. We have the resources to help your church identify gaps in your plan. We’ll help you fill those gaps and reduce the risk you face. One of our carriers offers a free self- assessment. You can find it here. After you take the assessment, call the team at Church Insurance Management and learn how we can help your church protect the most vulnerable group in your church, your youth. |
How will all these abuse claims impact our church? We’ve never had a claim!
| The Wall Street Journal recently reported that major insurers Travelers and Chubb have revealed that they have added to their reserves due to uncertainties about sexual abuse liabilities. Travelers increased their reserves in the first quarter of 2019 between $50 million and $100 million. While neither of these carriers have a strong presence by providing coverage to the local church insurance marketplace, they are leaders in the industry. The Roman Catholic Archdiocese of New York recently filed a lawsuit against 31 insurers in an effort to get them to cover claims ahead of New York’s Child Victims Act. Clearly the insurance industry is bracing for the financial impact of future abuse related claims. Our church carriers are making similar preparations. While it is impossible to predict exactly how your church will be impacted, it is safe to say that the cost of purchasing abuse and molestation liability will increase and the expectations/requirements that you have a satisfactory abuse prevention program will grow as well. You should expect your insurance carrier to ask more questions about your prevention programs. They may ask to see your written programs or want to speak with church leaders about the implementation of your program. Having a written program on the shelf will probably no longer suffice. Reducing your risk requires you to fully implement your prevention program for the protection of all you serve. Expect recommendations to improve your program, with the condition that you address any concerns, in order to keep your abuse coverage in force. You may see changes in the policy language limiting or reducing coverage in the future. When claims are increasing, insurance companies look for ways to limit their exposure. It will be important to understand your policy and know what it will and will not pay for when a claim occurs. This is also a good time to review the limit of coverage your church carries. Settlements today are often in the hundreds of thousands of dollars or more. Settlements of more than $ 1 million are not uncommon. A policy limit of $50,000 or $100,000 may not be enough to protect you. Your insurance company may agree to pay the limit quickly, leaving you to defend yourself and pay the balance. This movement has tremendous energy behind it. Our times have changed. We may need to change too! If you have questions or concerns about your current prevention program or want to learn more about the resources Church Insurance Management could bring to your church, we are happy to help. We are just a phone call away. |