General Liability insurance coverage is protection against accidental occurrences which are not excluded by contract language. Common examples of covered General Liability claims are slips and falls on church property. A member or visitor may slip on ice in the parking lot in the winter months and end up with a broken leg and arm. The church’s General Liability insurance policy will typically provide coverage for such an incident.

The General Liability insurance policy specifically excludes any claim arising out of a professional act, error, or omission. Does a church have a Professional Liability exposure? The short answer is absolutely yes.

A huge area of concern in the realm of Professional Liability is that of the church pastor providing counseling services. Several hypothetical scenarios could be imagined in which someone, even a church member, alleges they suffered damages as a direct result of the pastor’s counseling service. Perhaps some personally-identifying information is leaked accidentally by the pastor following a counseling session. Another possible scenario could involve a pastor not realizing his/her professional limits and failing to refer the person seeking counseling to a more qualified professional for evaluation. Even if allegations are false or groundless, the pastor and the church likely will have to respond and provide legal defense on his/her/its behalf. A Professional Liability insurance policy will provide legal defense and claim protection, subject to policy terms, conditions, and limits for claims arising out of this type of professional service.

Churches also have a separate and distinct exposure broadly known as Abusive Acts or Sexual Misconduct. Both the General Liability and the Professional Liability policies specifically exclude claims arising out of or alleging these activities. A special endorsement to the church’s Professional Liability policy must be purchased which adds back coverage, subject to the terms, conditions, and limits of the endorsement. Any intentional abusive act or intentional sexual misconduct is excluded. Churches have an increasing exposure to wrongful accusations of sexual misconduct. This special endorsement typically provides defense coverage for the pastor or employee or volunteer and the church up until a determination is made that the pastor or employee or volunteer has engaged in an abusive act or sexual misconduct (intentional act is determined). The church itself usually will still receive defense coverage up to the coverage limit for abusive acts or sexual misconduct.

More and more training programs provide protocols and safeguards for church pastors, employees, and volunteers to enact that prevent circumstances which lead to Professional Liability and Abusive Acts and Sexual Misconduct claims. Both the Professional Liability insurance policy and the Abusive Acts/Sexual Misconduct Endorsement provide some peace of mind to the church, the pastor, employees and volunteers, as they perform in their respective capacities to the best of their ability.

The above content is general discussion only. Specific policy terms, conditions, exclusions, and limits will prevail.