December 16, 2015
Think about your ministry’s board members and administrators: the work they do is important to your organization, and they are often volunteers with other full-time jobs. Did you know these board members could face personal liability and financial damages as a results of unjust leadership actions?
Sometimes ministry directors find themselves in situations where they have failed to maintain adequate financial records or exceeded the authority granted by the church’s bylaws. Circumstances like these make it important to consider Directors and Officers liability coverage (D&O) to protect your organization’s board members, administrators, trustees, directors, and officers.
D&O coverage helps protect the personal assets of your ministry’s leaders in the event that they or your ministry become obligated to pay financial damages as the result of wrongful leadership decisions or activities. Depending on the insurance provider, this coverage also includes a limited amount of defense funds for your ministry to use to mount a defense in the event you are sued. Some policies include spouses of ministry leaders when they are engaged in ministry activities.
Insurance policies usually define a director or officer as a leader, specifically serving as a board member, administrator, director, officer, or trustee, and acting within the scope of the leadership authority granted by the bylaws of an organization.
This coverage protects directors and officers when they are held personally liable for financial damages that result from their actions as board members. These damages must result from the failure of leaders to perform their duties in a proper way.
D&O provides defense funds to refute a claim or to prove immunity under the law. Even if your state has legislation protecting nonprofit directors and officers from lawsuits, you still may need D&O insurance. In some cases, the statutes specify activities for which immunity is intended, but they typically don’t protect the organization. With D&O coverage, the organization is protected in relation to covered financial damage claims.
Individuals in directors and officers positions are a vital part of any ministry. They need to be protected in unforeseen circumstances, making it especially important to consider the benefits of D&O liability coverage. Other aspects of your ministry are protected by insurance, why shouldn’t directors and officers be protected, too?
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.
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.
Thieves are taking advantage of soaring precious metal prices. Take steps to protect your ministry’s vehicles and property.
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.
Preparing for this Christmas season may require additional creativity, due to the uncertainty of what COVID-19 may bring in our local community.
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.
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.
Learn about the CARES Act and two loans for which ministries may be eligible, since Congress authorized additional funding April 23.
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.
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.
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.
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 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.
National Insurance Awareness Day falls on June 28 this year to remind people everywhere that insurance is vital to their companies and ministries.
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.
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.
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.
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.
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.
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.