Allegations of sexual violence against celebrities, politicians, and other public figures have become increasingly common in the last few years. Such allegations can ruin more than a reputation; they can destroy families, relationships, and businesses. Data reveals that over 47% of people, mostly women, have experienced some form of sexual misconduct within their workplace, and religious or nonprofit organizations aren’t immune.
The alarming and unacceptable statistics on the prevalence of sexual misconduct, coupled with the robust social movements, have probed many employers to take proactive steps to understand the risks and reality of what’s happening within their organization.
Responsible organizations can ensure appropriate protocols, policies, and protection can be streamlined for helping the victim quickly and tactfully, as well as defending the business from potentially disparaging sexual harassment claims with proper insurance.
Since no single insurance policy provides full coverage for every type of claim that may result from such allegations, ministries and nonprofits should examine a wide range of coverage to ensure they have optimal protection during unprecedented situations. Let’s start by delving into the basics of determining how a sexual misconduct insurance policy works.
Sexual Misconduct Insurance
Regardless of the circumstances and validity of the allegations of sexual misconduct, a reliable sexual misconduct policy can help handle it appropriately. This type of policy is usually built into an EPL insurance (Employment Practices Liability) which is often a part of the directors’ and officers’ insurance policy.
As a coverage extension, the sexual harassment policy helps pay for the legal expenses associated with defending claims brought against the employer or an employee by members or other employees of the nonprofit or religious organizations. Some insurance policies even help pay for the settlements. Here are a few types of insurance policies to help streamline protection for your nonprofit or ministry.
EPL – Employment Practices Liability Insurance
EPL insurance protects from all employment-related misconduct claims, including wrongful termination, sexual harassment, retaliation, defamation, and discrimination, and more. It also protects from claims made by non-employees like members, vendors, and volunteers.
However, EPL excludes claims that include bodily injuries. Therefore if the claimant alleges both physical and verbal harassment, General Liability Insurance will be needed to get additional protection.
General Liability Insurance
These policies protect ministries from claims related to property damage and bodily injuries for which churches and nonprofits are found to be legally liable.
A Multi-Layered Approach To Address Sexual Misconduct Allegations
Churches and nonprofits are expected to take sexual harassment claims seriously by encouraging a positive corporate culture and addressing sexual violence, harassment, discrimination, and assault claims promptly. Since no one policy provides ample protection against allegations, ministries and nonprofits should take a layered approach for insuring their business.
You can call or email professionals at Integrity Now Insurance Brokers to discuss your concerns with reliable church insurance agents or connect with reputable church insurance companies. We can help you devise a comprehensive church insurance policy that includes church property insurance, church liability insurance, workers’ compensation insurance, house of worship insurance, commercial auto insurance, umbrella insurance policy, and more.
Our team will help you understand complex insurance terminologies and guide you about how each addition or extension will help address various potential dangers that can impede the growth of your ministry.
Schedule a consultation today to discuss the type of policy your church needs to recover losses through claims while safeguarding your ministry in Washington, Arizona, Nevada, Colorado, Ohio, Texas, and California.