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INSURANCE ESSENTIALS Presented by: GuideOne Insurance
Table of Contents WHAT TO DO IF YOUR CHURCH IS SUBJECT TO A LIABILITY CLAIM
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7 STRATEGIES FOR DEALING WITH SEX OFFENDERS AT YOUR CHURCH
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Accidents happen; it’s inevitable. And when those accidents occur, it can be a scary time for both the injured party and the church. When such events take place and the injured party files a claim against the church, it’s called a liability claim.
If a sex offender wants to attend your church — or is already worshipping with you — how would you respond? Roll out the welcome mat? Exclude them entirely? Try to find middle ground? These are questions church leaders regularly face.
By Eric Spacek, JD, ARM
By Eric Spacek, JD, ARM
4 STEPS TO CREATING A SAFE MINISTRY
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It’s no secret the world we live in today is much different than it was just a few years ago. If your church is like many others, it probably has a limited budget, and it’s difficult for staff to take on additional responsibilities. However — with little to no extra money — your religious organization can make dramatic improvements in the way it protects people and the property.
5 SIGNS YOU MIGHT BE DUE FOR AN INSURANCE CHECKUP 8 If you filed a church insurance claim tomorrow, would your policy protect your church from loss and liability? If you’re not sure — or if the answer is “no” — it’s time to schedule a coverage review with your insurance agent or broker. By Eric Spacek, JD, ARM
By Eric Spacek, JD, ARM
ACTS OF VIOLENCE: PREVENTION AND RESPONSE
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As church leaders, staff, volunteers or even members of the church, it is hard to imagine a religious facility being a prime target for criminals. Churches are seen as sacred and safe places; however, violent incidents of varying natures happen several times each year across the country. Because these places of worship are open to the public, churches have become more vulnerable to senseless acts of violence.
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By Eric Spacek, JD, ARM
THE DO’S AND DON’TS OF RENTING YOUR CHURCH FACILITY
BETT ER
STEW ARDS .
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Opening your church’s doors to outside organizations is another way to extend your ministry into your community — but it might also open the door for safety and liability issues, such as property damage, theft, or tumbles on slippery surfaces. With smart planning, trusted use policies and a thorough review process, it’s possible to protect your place of worship and be a good neighbor. Keep these considerations in mind when renting your facility.
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By Eric Spacek, JD, ARM
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CHURCH EXECUTIVE • I N S U R A N C E E S S E N T I A L S • V O L U M E 2
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INSURANCE ESSENTIALS
What to do if your church is subject to a liability claim By Eric Spacek, JD, ARM Accidents happen; it’s inevitable. And when those accidents occur, it can be a scary time for both the injured party and the church. When such events take place and the injured party files a claim against the church, it’s called a liability claim. “Liability” is the legal term for “fault.” A liability claim is a demand for money to compensate someone for his or her injuries or damages. Often, these claims are presented by the injured or damaged party to the potential party at fault in the form of a lawsuit. An organization (church) is responsible for such injuries if it is proven negligent. Example: Jane enters a church building and slips on the floor leading to the stairway. Jane lands on her hip and is unable to walk for an extended period of time. She believes the church is at fault and wants compensation for her injuries. Jane is advised by her attorney to file a liability claim against the church. Jane’s legal counsel must prove the church was responsible, or negligent, to receive compensation. Outcome: In this example, the floor upon entering the building was wet from the winter weather, and there were no “wet floor” signs or other means of communication warning members as they entered. The church was negligent in providing proper care to its attendees and must compensate Jane for her damages. The example above is one of the most common liability claims churches face. What happens when this (or any) type of claim is filed against your church? Before you react, consider the tips below. Make no admissions of liability. Do not acknowledge or deny responsibility when an accident occurs. Tell the injured party that your church will report the incident to its insurance company, and the insurance company will be contact with them directly. This avoids taking responsibility for something that may not be the church’s fault. Gather all relevant facts. Capture names and contact information for all parties involved, or who might have information on what occurred (especially witnesses). Immediately take photos of the scene of the incident, if applicable. Lastly, complete an incident report to record the event. Leave the scene untouched. Ensure the area is properly blocked off and left alone until you have spoken with an adjuster. Secure equipment. Any items or equipment involved in the accident should be placed in a locked area once you have spoken with your adjuster and kept there until they can be inspected (ladders, chairs and so on). churchexecutive.com
Report the loss. Immediately report the incident to your church’s insurance company and / or agent. If the claim involves issues that are potentially criminal in nature (allegations of physical or sexual abuse), immediately report it to the proper authorities. If the claim involves minors, be sure to avoid disclosing names or details to other parties. In scenarios such as the one previously mentioned, it’s easy to overreact and try to make up for the situation that just occurred. The most common mistake churches make in these types of incidents is admitting liability or making offers of assistance that they are not authorized to make. It’s important to note that just because someone initially says they are not injured or that they aren’t filing a claim, doesn’t mean they won’t change their mind at some point in the future. Ensure all accident-related information is documented and reported immediately to avoid a much larger issue later on. Church liability claims can prove to be very costly to settle. As a church facility that is liable for more than just the building itself, it’s important to have proper maintenance procedures and be proactive in loss prevention. This will help to reduce the risk of a liability claim against your church, and make for happy and safe congregants. Eric Spacek, JD, ARM is the Director of Risk Management and Loss Control at GuideOne Insurance [ www.guideone.com ] in West Des Moines, IA. Before joining GuideOne, Spacek served as Minister of Operations for a large Methodist church in Raleigh, N.C., and was a liability litigation trial attorney in Washington, D.C. I N S U R A N C E E S S E N T I A L S • V O L U M E 2 • CHURCH EXECUTIVE
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Emergency preparedness — to prepare for emergencies and crises, such as natural disasters, medical emergencies, terrorism, and moral or criminal failures of key leaders.
STEPS TO CREATING A SAFE MINISTRY By Eric Spacek, JD, ARM
It’s no secret the world we live in today is much different than it was just a few years ago. In today’s society, it has become clear that churches are no longer the safe haven they once were thought to be. It’s not uncommon to hear stories of church violence or allegations of abuse on the nightly news. Unfortunately, churches have become more vulnerable to these types of incidents that threaten the strength and reputation of the organization. To help protect your religious organization from these threats, the leaders of your church are encouraged to set aside time each year to ensure the safety and security of the facility. During this time, it’s important to analyze, review and modify current church policies and procedures to ensure adequate plans are in place to help prevent potential risks. If your church is like many others, it probably has a limited budget, and it’s difficult for staff to take on additional responsibilities. However — with little to no extra money — your religious organization can make dramatic improvements in the way it protects people and the property. CREATE A TEAM Creating a Safety and Security Team within your church is a great way to get other members involved, and it allows church leaders to focus on other aspects of the ministry. This team should be comprised of three to eight members, each with different backgrounds, skills and experience. They also should feel strongly about implementing a proactive risk management program. The goal of this team is to begin identifying risks at your church and formulating a safety and security program. Your team should meet at least once per quarter and should give activity reports to church staff and the administrative body regularly. DETERMINE AREAS OF RISK After the Safety and Security Team has been created, it’s important they look at all areas of the organization that could pose a risk. With the goal of making churches a safer place, GuideOne Insurance suggests using the EFFECT framework to determine risk areas:
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Facility safety — to keep the church buildings and grounds safe, including heating and air-conditioning systems, electrical hazards, preventing water damage, kitchen safety, reducing the risk of slips and falls, and property crime prevention. Financial safeguards — to prevent theft, mishandling and embezzlement of church funds. Employee and volunteer safety — to keep workers and volunteers safe, including physical safety, workers’ compensation issues, employment practices safeguards, adult sexual misconduct prevention and board member liability. Children and youth safety — to keep children safe from risks, such as sexual abuse and injuries in the nursery, on playgrounds and during recreational activities. Transportation safeguards — to address safety in church transportation, including selection and maintenance of vehicles owned by the church, rented or borrowed vehicles, selection of drivers and occupant safety. USE RISK MANAGEMENT RESOURCES Insurance companies typically have various risk management tips, tricks and resources available for churches to use as a reference. These can include fact sheets, risk management articles, training videos and assessments, and more. Some companies even provide a discount on your insurance policy for following certain proactive measures and guidelines. EDUCATE THE CONGREGATION The Safety and Security Team should obtain resources and seek training to become informed on key elements and responses of church risk management. The team should then educate the church board, staff members and congregation. Speak to small groups, key committees and other members to keep them informed and receive their input on safety issues and implementation. If your church members become more knowledgeable about the steps being taken to protect the facility, they might begin to be more proactive, further limiting the risk of loss. Determine when your organization can dedicate time to church safety and security, and try to make it an annual process. Once the Safety and Security Team is appointed, develop a strategy for slowly phasing in a prevention program. The goal is to integrate safety and security measures into the daily life of the congregation without compromising the church’s ministry. Although the culture of the church is a busy one, adequate safety and security precautions are necessary to limit loss and disruption of your organization’s services and activities. Eric Spacek, JD, ARM is the Director of Risk Management and Loss Control at GuideOne Insurance [ www.guideone.com ] in West Des Moines, IA. Before joining GuideOne, he served as Minister of Operations for a large Methodist church in Raleigh, N.C., and was a liability litigation trial attorney in Washington, D.C. churchexecutive.com
ACTS OF VIOLENCE: PREVENTION AND RESPONSE By Eric Spacek, JD, ARM
As church leaders, staff, volunteers or even members of the church, it is hard to imagine a religious facility being a prime target for criminals. Churches are seen as sacred and safe places; however, violent incidents of varying natures happen several times each year across the country. Because these places of worship are open to the public, churches have become more vulnerable to senseless acts of violence. As a church leader, you will be looked at as a symbol of hope when disaster strikes. While rare, violent acts do occur at churches. No religious organization, big or small, is immune to the risk of a violent episode. These acts may include robbery, assault, rape and even murder. The most common violent act is a shooting. Typically, these vicious attacks are carried out by people who have some connection to the congregation, and have oftentimes given a warning sign, such as threats, outbursts, disputes or other confrontations. There is no assurance that a violent episode can be avoided; however, your church can be prepared for the possibility of an incident occurring. Make your church less vulnerable • Working with your church’s safety and security team, designate a person to take the lead on security issues, and define responsibilities of that position. •C onduct a security assessment to identify your church’s vulnerabilities. This should be conducted in conjunction with your local law enforcement agency or other security professional. •D evelop a church security plan and guidelines with defined roles for all members of your staff, including greeters, ushers and other frontline workers and volunteers. Use your local law enforcement agency to help form the church’s security plan. • I n your security plan, include a seating location for ushers and / or security personnel — strategically stationing them in both the front and rear of the sanctuary. Be sure to also include lockdown procedures for all areas of the facility, crisis communications, and an evacuation plan for the building. • Establish a method for quickly communicating issues of concern, such as a weapon, to appropriate church personnel and authorities. Walkietalkies, two-way radios and cell phones might be appropriate to have on hand. • E stablish a no-tolerance policy for fights, altercations and other disruptions. •W ork with local law enforcement to provide training for staff and volunteers on topics such as dealing with disruptive individuals and identifying and diffusing potentially violent situations. churchexecutive.com
• The use of professional or volunteer security guards at church has become more commonplace in recent years. Churches generally have three options when it comes to the use of security guards to help keep your ministry safe: - Hire off-duty law enforcement personnel; - Hire a professional security guard service; or - Maintain a security guard force at your church. What to do in the event of a violent incident If a violent incident occurs at your facility, the first priority is to protect the people in your congregation. To ensure everyone’s safety, follow these steps: • Call 911 as soon as it is safe to do so. • If there is an opportunity to keep the invader out by locking doors and / or closing off areas of the church, do so. • If there is an opportunity to remove all members and guests from the premises, do so as quickly and safely as possible. • Quickly control panic situations. Ideally, this will likely lead to a sequenced evacuation. • A church leader must take charge and provide orders to be followed. • All orders must be clear and direct, such as: - “Ushers, secure the building.” - “(Name), call the police.” - “(Name), secure the nursery.” - “Everyone, take cover on the floor.” While not every violent incident can be prevented, taking the steps outlined above can help your religious organization become better prepared for responding to criminal acts and for communicating to your congregation during a crisis. Eric Spacek, JD, ARM is the Director of Risk Management and Loss Control at GuideOne Insurance www.guideone.com in West Des Moines, IA. Before joining GuideOne, he served as Minister of Operations for a large Methodist church in Raleigh, NC, and was a liability litigation trial attorney in Washington, D.C. I N S U R A N C E E S S E N T I A L S • V O L U M E 2 • CHURCH EXECUTIVE
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THE DO’S AND DON’TS OF RENTING YOUR CHURCH FACILITY By Eric Spacek, JD, ARM
From weddings and banquets, to meetings and basketball practice, chances are your church receives rental requests on a regular basis. Opening your church’s doors to outside organizations is another way to extend your ministry into your community — but it might also open the door for safety and liability issues, such as property damage, theft, or tumbles on slippery surfaces. With smart planning, trusted use policies and a thorough review process, it’s possible to protect your place of worship and be a good neighbor. Keep these considerations in mind when renting your facility:
• Do church members get priority if two groups want the space at the same time? • Must someone from the church be present when an outside group uses the facility? • Must childcare providers be selected and screened by your church? • How will damage, injury or theft be handled? DON’T make decisions alone. Form a team of church leaders, plus legal and financial counsel, to approve or deny rental requests depending on the organization, the type of event, and potential legal and tax implications. The approvals team should document their decisions. DO ask questions. Before giving a group the green light to use your church’s space, do your homework. Find out what specific type of event the group is hosting, approximately how many people will attend, which room(s) the group needs, and how exactly participants will use the space. When possible, check venue references at places where the group has held past events. DON’T skimp on insurance. Make sure that any group that rents space in your church has insurance coverage limits that are equal to or higher than your church’s insurance policy limits, and confirm that the group names your church as an additional insured on their policies. Secure proof that your church has been named as an additional insured on their insurance.
DO set ground rules. Saying “yes” or “no” to use requests is much easier when you have streamlined guidelines in place — guidelines influenced by legal and financial advisors. Create a go-to facility use policy that includes, but is not limited to, the following factors: • W ill you allow members of the public or outside organizations to rent your facility, or limit it to church or ministry uses? Note that opening your facility to the public can have potential tax and/or legal liability implications. • Which rooms in your church (the sanctuary, fellowship hall, classrooms, kitchen and nursery, for instance) are open to users, and which aren’t? • What will you charge for rental fees and related expenses? Will church members pay less than nonmembers? • Who is responsible for setup and cleanup? • Will you allow sales during events? 6
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DO get everything in writing. Have approved groups sign a Facility Use Agreement that outlines essential details: costs, time of use, and your expectations. Additionally, make sure the agreement includes a release from liability — a “hold harmless” clause that indemnifies your church in the event of injuries or damage and requires proof of insurance. Review your Facility Use Agreement annually to ensure it aligns with your church’s use policies and mission. DON’T ignore facility maintenance. As the “lessor” of space, you have an obligation to provide a safe facility. Limit risk by keeping your facility in tip-top shape inside and out. Remove tripping hazards, secure valuables, and mark and clear slippery surfaces. It’s a good idea to conduct pre- and post-event building walkthroughs and assessments. It’s always better to be safe than sorry — and sometimes it makes better sense to say “no” to rental requests. By making building use policies a priority and implementing these six strategies, you can gain peace of mind and help minimize risk for everyone involved. Eric Spacek, JD, ARM is the Director of Risk Management and Loss Control at GuideOne Insurance [ www.guideone.com ] in West Des Moines, IA. Before joining GuideOne, he served as Minister of Operations for a large Methodist church in Raleigh, NC, and was a liability litigation trial attorney in Washington, D.C. churchexecutive.com
STRATEGIES FOR DEALING WITH SEX OFFENDERS AT YOUR CHURCH By Eric Spacek, JD, ARM
If a sex offender wants to attend your church — or is already worshipping with you — how would you respond? Roll out the welcome mat? Exclude them entirely? Try to find middle ground? These are questions church leaders regularly face. More than 60 percent of the 800,000-plus registered sex offenders in the United States are currently under some form of community supervision, which often includes faith-based treatment and guidance. The delicate balancing act of providing spiritual support to offenders while protecting your congregation — especially children and abuse survivors — makes the situation particularly tricky. Answers come easier when your church is prepared with an approved, go-to policy on sex offenders before a situation arises. This policy should be developed with fellow church leaders and legal counsel, and should be applied consistently. Plan and implement your policy with these seven strategies: #1: Get the facts. A false accusation is an easy way to attract a lawsuit, so first confirm that the individual is indeed a convicted sex offender on the National Sex Offender Public Website: nsopw.gov. Also research local laws and ordinances regarding sex offenders during your fact-finding mission, because offenders might be banned from places where children gather or having any contact with minors. #2: Consider your congregation’s needs. The safety, security and well-being of your church members should be an essential part of your decision-making process. Address the following when reviewing your options: • Your ministry’s values and beliefs • Your congregation’s reaction • Risks to church members — and how to mitigate these risks • Resources for working with sex offenders (Can you assemble a team dedicated to ministering and monitoring activity?) #3: Be safe, not sorry. If you decide to grant registered offenders permission to attend your church, determine the extent to which they can participate. Allowing full, unsupervised access like other members have is a liability risk. Requiring chaperoned attendance and limiting participation to certain supervised activities at specific times — adult worship services, for example — is a more moderate approach. churchexecutive.com
#4: Set clear boundaries. In conjunction with legal counsel, create an agreement that all registered sex offenders must sign — and comply with — in order to participate in church activities. The agreement should contain straightforward guidelines such as the following: • I understand that I may not attend any youth activities. • I understand that I may not sit with a minor during worship activities. • I understand that I may not engage in one-on-one conversation, or have any electronic communication with, a minor. • I understand that I may not venture into youth or children’s areas of the church building, or use restrooms in those areas. • I agree that violating any of these agreements will result in my being prohibited from attendance at any church function, whether on or off church premises. #5: Meet with the offender. If a registered offender is involved in your church (or would like to be), schedule an in-person meeting with the offender and at least two church leaders. Use the conversation to: • Inform the offender that you’re aware of his or her background • Explain your church’s policy on sex offenders • Discuss the offender’s ministry needs • Gain written approval for a background check and release of probation / parole information • Review who you’ll disclose information to within your church, whether it’s the entire congregation or parents of children • Have the offender sign the limited attendance agreement #6: Contact the probation officer. With the offender’s authorization, contact his or her probation officer and gain an understanding of the terms and conditions of the offender’s release. #7: Assemble your team. If your church will provide chaperoned attendance, assemble the team involved in that undertaking and review the policies and the schedule with them. Stress the significance of reporting any violations of the agreement to appropriate church leadership. Developing your church’s sex offender policy provides an opportunity to review and implement other methods for protecting church members, such as forming a safety and security team and conducting comprehensive background checks on volunteers and paid staff. Activating these and other safety precautions will provide peace of mind for you and your congregation. Eric Spacek, JD, ARM is the Director of Risk Management and Loss Control at GuideOne Insurance [ www.guideone.com ] in West Des Moines, IA. Before joining GuideOne, he served as Minister of Operations for a large Methodist church in Raleigh, NC, and was a liability litigation trial attorney in Washington, D.C.
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5 SIGNS YOU MIGHT BE DUE FOR AN INSURANCE CHECKUP By Eric Spacek, JD, ARM
If you filed a church insurance claim tomorrow, would your policy protect your church from loss and liability? If you’re not sure — or if the answer is “no” — it’s time to schedule a coverage review with your insurance agent or broker. “When churches find themselves paying for uncovered claims out of pocket, ministry suffers,” says David Lehmann, sales manager at Lutheran Trust / Church Asset Management, a subsidiary of GuideOne Insurance, in St. Charles, MO. “A church may have to make the difficult decision to not go on a certain mission trip or it may not be able to afford the additional youth pastor. That’s why it’s important to protect your ministry with proper insurance.” During an insurance checkup, you and your agent will assess the church’s needs, determine if your current limits are accurate and make necessary adjustments so you’re not underinsured — nor overpaying for coverage you don’t need. You should also revisit the church’s replacement cost value (the cost of repairing or rebuilding the facility today) and content value for everything inside the church so you are protected in the event of a fire, storm or other disaster. It’s a good idea to review your church’s policy annually, and you should also contact your agent in these instances: #1: Your leadership changes. “If your church has new board members, it may be a good time to look at your insurance policy because philosophies with such things as deductibles may change,” Lehmann says. #2: You move or renovate. Remodeling, adding space or building a brand-new facility can create coverage gaps because of the increase in property value. If a renovation or new construction is in your plans, contact your insurance agent or broker to secure proper coverage. Then, when the church improvement project is complete, visit with your agent to determine the updated structure’s replacement cost value. Be prepared to share square footage, the type of materials used, the building’s age, architectural features and other relevant facility details. #3: You make a big purchase. The items inside your church matter, too. If you buy new audiovisual or other high-value equipment, make sure the values of these items are factored into your building and business personal property coverage and that your limits are adjusted accordingly. You might also want to secure an appraisal for particularly high-value items to make sure that you are appropriately covered. 8
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#4: You have added new ministries. New programs — like international mission trips, a fall festival or a community outreach project — can increase liability exposure and may require additional coverages, such as business auto or travel protection. “While there is coverage built in for these things, special attention is needed occasionally,” Lehmann says. #5: You are concerned about current events. It’s a good idea to stay updated on evolving risks, like cyber security and employment lawsuits, to determine if it makes financial sense to absorb them through deductibles or risk management. For instance, identity fraud and theft stemming from data breaches continues to be a growing concern to churches of all sizes. So, you might consider supplementing your policy with cyber liability coverage, which covers expenses you would incur if a privacy breach occurred, like credit monitoring services and notification costs. And, since employment disputes are more common than in the past, consider an employment coverage add-on to protect against allegations of discrimination, sexual harassment and wrongful termination. While you discuss your coverage questions and concerns with your church insurance specialist, also ask about the risk management resources offered by the insurance company — such as inspection checklists, fire-prevention pointers and background checks — so you can enhance your church’s safety ministry, too. A proactive approach toward risk management, paired with smart coverage and a dedicated agent, goes a long way in protecting your church and bringing peace of mind. Eric Spacek, JD, ARM is the Director of Risk Management and Loss Control at GuideOne Insurance [ www.guideone.com ] in West Des Moines, IA. Before joining GuideOne, he served as Minister of Operations for a large Methodist church in Raleigh, NC, and was a liability litigation trial attorney in Washington, D.C. churchexecutive.com