Protect Your Board Members
June 15, 2016
Serving as a board member or officer often inspires a special sense of responsibility for many who serve in such a role at their church or related ministries. That responsibility, however, also carries with it certain financial risks connected to the outcome of board actions. For example, a board member or ministry officer could face personal liability for a variety of damage claims, some of which include:
- Failing to maintain adequate financial records
- Developing and applying membership standards that favor one group or individual over another
- Exceeding the authority that the organization’s charter or bylaws grant to the board
- Using budgeted or donated money in a manner different from the originally designated purpose
- Failing to preserve the church or ministry’s tax-exempt status
In most cases, standard general liability insurance policies don’t cover claims against directors or officers resulting from failure to perform their duties. Churches and ministries must purchase separate liability coverage to protect ministry leaders from financial damage claims.
Why Purchase D & O Insurance Coverage?
Although many states have enacted legislation providing some protection for directors and officers of not-for-profit organizations, your church or related ministry should have D & O insurance protection for several reasons:
- D & O insurance provides defense funds to refute a claim or to prove immunity under the state law.
- Although your state may have legislation protecting not-for-profit directors and officers from lawsuits, a covered claim may fall outside the protection of the state statute.
- D & O coverage usually includes the organization as an insured; state immunity statutes often don’t.
- If state laws don’t protect your ministry and its board, and someone brings a successful suit against you, D & O insurance pays covered financial damage claims that directors and officers are legally responsible to pay.
Check with your insurance agent to learn more about how this valuable coverage can protect your ministry and its leaders.
- Are You Covered If You're Injured Overseas?
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Recently, we learned about two major overseas incidents involving pastors on mission trips. The first incident involved a pastor being hit by a motorcycle while running. The second was a bus accident involving two pastors. The runner and one of the two bus passengers sustained extensive injuries.
- IRS Announces More Church Audits Regarding ACA Compliance
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Last month, the IRS announced that its initiating hundreds of church exams to test compliance with the Affordable Care Act (ACA). While many provisions only apply to churches with 50 or more full-time equivalent employees (FTEs), even smaller churches could potentially violate provisions applicable to health benefit plans with as few as 2 plan participants.
- July 3, 2019
- Celebrate Safely This Independence Day
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July 4th is synonymous with food, fun, and fireworks. If your church is planning an event this Independence Day, remember to keep a focus on safety, so that everyone can have fun.
- June 28, 2019
- Insurance is one of those things we forget about until we need it
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National Insurance Awareness Day falls on June 28 this year to remind people everywhere that insurance is vital to their companies and ministries.
- April 30, 2019
- Measles Cases Reach Record-Breaking Numbers
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More than 700 confirmed cases of measles have been reported in the United States so far this year, making this outbreak the worst in decades.
- April 8, 2019
- Vehicle Registration Guidelines for Ministries
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Do you use commercial vehicles that transport more than 15 passengers or carry cargo from one state to another as part of your ministry? If so, you are required to register with the Federal Motor Carrier Safety Administration (FMCSA) and obtain a USDOT number.
- March 14, 2019
- Returning to Tornado Damaged Areas
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If your ministry buildings become damaged because of a tornado, or if your ministry plans to volunteer to assist with disaster recovery for those affected by these storms, be mindful of the dangers involved.
- June 20, 2018
- Check for Safety Before Putting Your Head in The Clouds
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Thinking about taking a group from your ministry ziplining? Be sure to confirm that the site you choose complies with the new Kentucky state law that regulates aerial recreational devices.
- June 1, 2018
- June Is National Safety Month - Week 1: Emergency Preparedness
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The National Safety Council has designated June as National Safety Month, so we want to make sure your ministry is doing everything it can to protect its people, property, and programs. Each week in June, we’ll tackle a different topic. Up this week: Emergency Preparedness.
- April 18, 2018
- Collect Online Donations? This New Scam Targets You
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There’s a new scam in town, and ministries and other organizations collecting donations are the primary target. If your ministry collects tithes or donations, you could be targeted by scammers practicing donation overpayment fraud.
- April 9, 2018
- Prepare for Medical Emergencies at Church
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Accidents and medical emergencies happen at church more often than you may think. Knowing how to deal with minor medical injuries, illnesses, and major medical emergencies until first responders arrive can make a big difference.
- February 21, 2018
- Remembering Billy Graham
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Beloved evangelist Billy Graham was called to his heavenly home on Wednesday, February 21, 2018, at the age of 99.
- February 9, 2018
- Flu Is Widespread: Protect Your Congregation
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For the first time in its 13 years of influenza monitoring, the U.S. Centers for Disease Control and Prevention is reporting that every state in the continental U.S. is seeing widespread flu activity. Get tips on how to keep your congregation healthy this flu season.
- February 2, 2018
- More Than 200 Attend Church Security Conference in Paducah
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On January 27, American Church Group of Kentucky and Heartland Church in Paducah hosted a Church Security Conference to help educate ministries on how to protect their people and ministries. The three-and-a-half-hour event was free to attend and offered local churches an opportunity to learn how to develop a safety and security mindset and identify potential gaps in their current safety and security procedures.
- January 23, 2018
- Prayers for Victims of School Shooting & Security Resources for Your Ministry
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We pray for the victims of the shooting at Marshall County High School in Benton, KY. How would your church respond in a similar situation?
- June 19, 2017
- Off-Site Youth Activities
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Snow skiing. Camping. Whitewater rafting. A youth group trip can give students an exciting diversion from their weekly routines, as well as an opportunity to strengthen healthy friendships. Off-site activities may challenge your students to step outside of their comfort zones a bit, but this can bring about a positive result.
- June 7, 2017
- Insurance Protection Should Accompany Every Mission Trip
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If you are in the process of planning a mission trip for your church group, make sure to think carefully about insurance, safety, and security as you hammer out the details. Extra preparation could minimize headaches when your group arrives on the mission field.
- May 24, 2017
- Think Before You Loan Your Ministry's Vehicles
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Has your church or school ever been asked to loan one of your vans or buses to another? Before you decide to loan your ministry vehicles to another organization, seriously consider the potential risks associated with such a decision.
- March 29, 2017
- Has Your Church Completed a Personal Property Inventory?
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Completing a personal property inventory of your church or ministry could be one of the wisest activities you can pursue. If disaster strikes and you file an insurance claim, you may need an inventory highlighting damaged items.
- March 15, 2017
- Is Your Ministry as Safe as It Could Be?
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Have you thought through potential dangers that may confront your ministry? Taking steps to consider and address these risks provides important protection from injuries, lawsuits, fires, and dozens of other hazards that may affect your ministry, especially your employees and those you serve.