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.
- May 9, 2023
- Save Money with One Change
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A periodic review of your insurance policy is a good way to make sure your ministry is protected for its most current needs, but it also may offer the opportunity to find some significant savings.
- January 26, 2023
- Responding to Mission Issues
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Having insurance coverage specifically designed for long-term international missions helps protect your people and organization from the financial impact caused by injuries, lawsuits, property damage, and more.
- January 26, 2023
- Brotherhood Mutual Foundation Kingdom Advancing Grant
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For the second year, the Brotherhood Mutual Foundation is offering the Kingdom Advancing Grant to innovative Christian church programs that are transforming local communities through ministry.
- January 9, 2023
- Better Achieve Your Mission in 2023
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- November 10, 2022
- Evaluate Your Ministry's Fire Safety Plan
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With the holiday season right around the corner, it’s wise for ministries to evaluate their fire safety plan. Whether your ministry is hosting a holiday party, prepping treats for charity, or running a community kitchen, make sure you’re well-prepared with these tips.
- September 9, 2022
- School is Back in Session
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As school is back in session, it’s important to make sure your school is equipped with the correct safety procedures. Thinking about your school’s physical security as a series of layers can help you find gaps in your plan. Transportation and volunteers are just two important aspects of your school safety plan to think about.
- July 15, 2022
- Shepherding Ministries in a Time of Change
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Anyone who turns on the news, flips through a magazine, or browses the web can see that American society and culture are experiencing rapid transitions. Some ministries have valid concerns that issues surrounding societal shifts may expose them to negative publicity, governmental scrutiny, or litigation.
- July 22, 2021
- Five Common Tricks of Cyber Scammers
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Cyber security is increasingly crucial in our technologically advanced world. Scammers use many schemes when attempting to steal your data, but you can outsmart them by understanding their methods.
- July 22, 2021
- Thousands in Relief Funding Available to Ministries Through the Employee Retention Credit
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Most ministry leaders don’t realize there is funding available to non-profit employers including churches, schools, colleges, and camps. This post includes some highlights about the credit and guidance on where to start to see if your ministry is eligible.
- April 21, 2021
- Take Time to Review Your Ministry's Child Protection Plan
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April is National Child Abuse Prevention Month. Though child abuse may not be something you could ever imagine happening within your ministry, sexual abuse of a minor is one of the top five reasons churches end up in court, according to Church Law & Tax. Studies also show that a child is much more likely to be sexually abused by a trusted adult than a stranger.
- March 16, 2021
- Prepare for Severe Spring Storms Now
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When severe storms strike, they can produce high winds and tornadoes. Damaging winds can wreak havoc on your ministry’s property and to buildings. A high wind event can crash debris through your windows, strip your siding, down trees on your parking lot, peel shingles off your roof, and fling back the flashing.
- February 25, 2021
- Catalytic Converter Theft on the Rise: Protect Ministry Vehicles
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Thieves are taking advantage of soaring precious metal prices. Take steps to protect your ministry’s vehicles and property.
- February 5, 2021
- Avoid Frozen Pipes as Temperatures Plummet
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As temperatures plummet, the risk of freezing pipes soars. Frozen pipes can cause costly messes that could also put your ministry on hold while you clean up.
- November 23, 2020
- COVID-19 and the Christmas Season
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Preparing for this Christmas season may require additional creativity, due to the uncertainty of what COVID-19 may bring in our local community.
- October 28, 2020
- Guidance for Ministries About Boy Scouts' Bankruptcy
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A mid-November deadline in the Boy Scouts of America’s (BSA) bankruptcy proceedings may have you wondering what the organization’s bankruptcy filing means for your ministry if you ever hosted or chartered Boy Scout Troops.
- October 1, 2020
- Applying for PPP Loan Forgiveness
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Organizations that obtained Paycheck Protection Program (PPP) funding through the CARES Act can have their loans forgiven, turning them into grants. To qualify, each borrower must file a forgiveness application with its PPP lender, proving that it followed the rules. If your church, school, college, or camp meets all the criteria, 100% of its loan can be forgiven.
- March 30, 2020
- CARES Act: Churches Need to Apply Now
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Learn about the CARES Act and two loans for which ministries may be eligible, since Congress authorized additional funding April 23.
- March 6, 2020
- Coronavirus and Your Ministry: Tips for Prevention
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As concern over the dangers associated with the spread of a new coronavirus, COVID-19, spreads, our agency and Brotherhood Mutual want to keep you informed and provide best practices for managing the spread of this and similar illnesses at your ministry.
- January 29, 2020
- Hosting a Game Day Bash? Brush Up on Copyright Basics
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The first Sunday in February is a big day for sports fans. In fact, many Americans view Super Bowl Sunday as a national holiday. Friends and families will gather this year to watch the big game, enjoy delicious snacks, and of course, critique the commercials that go along with game day.
- 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.