Why Your Directors and Officers Care About Insurance
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.
What is D&O coverage?
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.
Who is a director or officer?
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.
When do you need D&O coverage?
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.
Why do you need D&O coverage?
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?
- March 30, 2020
- CARES Act: Churches Need to Apply Now
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Some significant strides were made last week in the passing of the “Coronavirus Aid, Relief, and Economic Security Act” or the “CARES Act” which has specific relief outlays for 501(c)3 organizations. We are hopeful that this Act will provide much needed relief for the churches, schools, day cares, camps and other related ministries we serve.
- 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.
- 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.