The Insurance Prof: Can insurance provide a legal defense for my church?
General liability protects churches and nonprofits from ‘slip and fall’ litigation.
But a defense against other types of lawsuits may require specialized insurance coverage.
You don’t have to do anything to be sued. Sometimes the sheer outrageousness of a lawsuit can even be humorous. But it’s never a laughing matter if you’re the one on the receiving end. You don’t have to do anything wrong to be the target of litigation. And the mere allegation of wrongdoing can harm your reputation and jeopardize your legacy. Even if you prevail in a lawsuit, you ultimately lose.
How can that be?
The legal process will likely cost thousands of dollars (at least) of attorneys’ fees. Hundreds of hours could potentially be consumed in the legal process. And of course there is the emotional and physical toll these stresses bring.
While general liability insurance covers what is often referred to as “slip and fall” litigation, specialized insurance may be required for other lawsuits, including allegations your church or nonprofit:
Failed to protect contributors' personal data.
Violated employment law or regulations.
Failed to protect the congregation when a violent incident occurred (active shooter).
Engaged in sexual misconduct.
Has individual board members or staff are personally liable for organizational failures.
Acted erroneously, committing serious errors or omissions.
The good news: Specialized church and nonprofit insurance liability coverage can fund a legal defense for each of these issues.
We hope you never have to defend yourself from a lawsuit. But if you, you can have peace of mind that the right insurance will back you up in court.
If you have questions about church or nonprofit liability insurance, please contact us.
