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A Guide for Church Trustees
V. Personal Injury/Insurance Claims
There are usually considered to be two certainties of our existence, namely: death and taxes. I submit that for congregations, there is a third, namely: personal injury and subsequent law suits arising out of claimed negligence on the part of the Congregation. In this regard, while not attempting to present the total picture of what is involved in such cases, two aspects of this area of concern are important to be considered.
Insurance Coverage
The Trustees should secure adequate and appropriate insurance coverage. Some denominations have made special arrangements for a national or regional insurance program that has been designed for their congregations. You should discuss your coverage periodically with your insurance broker to be sure that coverage reflects, among other things, the replacement cost of the building and personal property, including attention to special items such as stained glass, organ, etc.
Liability coverage is necessary for negligence of the Congregation or any individuals who may be considered agents or employees of the Congregation. It should be noted that this insurance, as indicated above, covers the liability of the Congregation and does not provide no-fault medical insurance to an injured party, which may be obtained separately. Insurance coverage is afforded only if the Congregation or its agents were negligent.
Steps to be Taken when an accident occurs
Immediately upon notification of any accident, a report
should be transmitted to your insurance agent and your Attorney or legal
advisor. Upon notification, the claim will be assigned to an investigator
or adjuster for purposes of investigating the claim. Someone will contact
the Congregation regarding specifics of the incident.
This notification takes place regardless of any belief on the part of
the Congregation that there is any liability or even in the event that
no one in the Congregation seems to have any knowledge of the incident.
Issues such as this will be resolved during the process of the claim being
adjusted or through litigation.
In the event that a law suit is commenced, you will need trial counsel for defense purposes. As the litigation proceeds, it will become necessary to appear at depositions in court (Examination Before Trial) or give actual testimony required at a trial. Your Congregation's Attorney or legal advisor should work with the Trustees and serves as a liaison between the Congregation and trial counsel.
Practical Considerations
1) After an accident, many different individuals may contact the Congregation seeking information regarding the accident. Care should be taken that only those representatives of the Congregation, its insurance company, investigators designated by the insurance company, trial counsel or your Congregation's Attorney or legal advisor should be provided with information. In the event there is any doubt about the request or the person making the request for information, your Congregation's Attorney or legal advisor will determine the validity of the request.
2) Any legal documents served or left with the Congregation should be immediately referred to your Congregation's Attorney or legal advisor.
3) For purposes of the service of legal documents, Congregation employees should be instructed that only the Pastor or the Congregation Secretary is authorized to receive any service of legal papers.
Service of papers, however, should not be avoided –
and in the event any documents are just left at the Congregation door,
steps or with an unauthorized individual, DO NOT ignore same but forward
them immediately to your Congregation's Attorney or legal advisor