We recently received a phone call from one of our church liability insurance company who started the conversation off with; does your client have an umbrella policy with another insurance company? Now this is not how you want a conversation to begin, as this is your first indication that our client and the church insurance company are potentially facing a large liability claim.
I reviewed the clients file and discovered they declined to purchasing an umbrella policy, so I asked what was going on. The insurance company stated they had received a notice of a church liability insurance loss which they considered “highly unusual”. They went on to explain there was a car accident that involved the loss of a life, which happened on the main city road next to the church.
I scratched my head and asked, how is this our client’s issue. They went on to state that a tree owned by the church, is being reported as the primary cause of the accident. It is our understanding, the claimant’s attorney is arguing the fact that the tree branches partially blocked the stop sign, preventing the driver from being able to see the stop sign in enough time.
When I ask if the church would like to obtain an umbrella policy to cover catastrophic events, this is one event no one could have predicted would have happened. How much will this claim settle for? This is still an unknown answer, as all the facts of this case are still being figured out.
No matter the size of the church organization, an umbrella policy should be considered as part of your church liability insurance program. The church mentioned above would be considered an average size church with 100 or so church members.
The church does own their church building, and now faces the possibility of having a large claim. This church liability insurance claim could exhaust their insurance limits and force them to sell their church building.
An umbrella policy helps provide additional liability protection for churches. It sits over your church’s general liability insurance, business auto insurance, and workers’ compensation insurance just to name the top three coverages. As churches have additional layers of liability coverages, the umbrella policy may provide additional protection over those policies as well.
Umbrella policies will typically provide from one million to five million of additional liability protection. In some instances, higher limits may be obtained.
It is important to talk with your church insurance brokers, about all available coverage. In most instances, churches will want to consider all known risk they may face. However, it is also important to consider the unknown church insurance liabilities that may come your way.
Depending on the state your church resides, will change the required workers’ compensation insurance coverage needed. A churches liability not only deals with members, and visitors of your church, but also your employees.
If one of your valuable employees becomes seriously injured, it is possible your workers’ compensation insurance coverage could run out of coverage. Consider purchasing additional church liability insurance with an umbrella policy.
When someone becomes injured no one wants them to suffer in physical pain or financial pain. Nonprofit organization can assist in providing the needed help through an umbrella policy. Not only will your church members appreciate it, so will the person who became injured.
The last thing any church needs, is to be involved in a major auto accident, that involves the loss of life and serious injuries.
In May 2013 one such accident received this news headline: Church is Sued in $5 Million 15-Passenger Van Lawsuit Alleging Wrongful Death. Did you know that most church auto insurance policies, only provide up to $1,000,000 in church liability insurance protection.
If this church, does not have an umbrella policy valued at $4,000,000, this lawsuit will create a financial hardship for the church and its’ members.
If a church, private school, or nonprofit own 15 passenger vans or buses, we highly recommend purchasing an umbrella policy.
No matter how safe your driver is and no matter how perfect their driving record is, accident happen.
Integrity Now Insurance Brokers understand churches, and the liability issues they face. Working with a church liability insurance agent is important for all churches, as they specifically specialize in church insurance.
In order to ensure your church has the needed protection in place, request church property insurance review by one of our licensed church insurance agents.
We will review your coverage limits and discuss how the church insurance contract language works from one insurance company to the next.
We service churches throughout the US. We take on the job of finding church insurance providers, so you can get back to serving your people.
If you are looking for the best church building insurance, look no further we have the relationships in place to save your church money.
Give us a call and request a church insurance quote.