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.
- 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.
- 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.