Whether someone falls and is injured on the church grounds, a volunteer hurts someone at the local bake sale, or a church vehicle hits a telephone pole, these are all circumstances where the church could be open to a lawsuit. Church liability insurance would pay for legal assistance as well as the damages or injuries if it is ruled that the church was at fault.

Unfortunately many church officers believe that parishioners of their church aren’t likely to instigate a lawsuit against the church. Unfortunately if someone is injured and needs care, or their property damaged, they likely will seek restitution. Consider if your child was injured enough to be hospitalized after participation in a church function or just attending Sunday school. Whether or not there was negligence, most parents would sue in order to take care of the medical bills and care of the child.

Besides that, not everyone who comes through the church doors are parishioners, and the employees and volunteers for the church also touch the lives of those who aren’t in the congregation.

Professional Services Liability Insurance

Often this type of church liability insurance is called Acts, Errors and Omissions Coverage. It may also be known as Pastoral Liability Insurance. Typically to get pastoral liability coverage the clergy has to be licensed or ordained. Without this, “clergy privilege” can be debated. The clergy will need to have the church provide professional liability insurance, particularly if the clergy has a degree in psychiatry, psychology, or something similar. This protects the church from lawsuits if someone believes they are hurt through any counseling.

This type of insurance can protect the church and its clergy from the following:

• Child Abuse Reporting Lawsuits – what is covered and what isn’t should be discussed with the agent. In some states and regions you can be put in jail if you don’t report child abuse as a crime.
• Counseling Malpractice
• Defamation
• Diversion of Funds
• Invasion of Privacy
• Misappropriation of funds
• Sexual Misconduct

Volunteer Liability Insurance

This area of liability insurance may require you to speak at length with a lawyer, insurance agent and/or broker to determine what works best for the congregation based on how volunteers are utilized. Volunteer coverage may also be based on state requirements. Many insurers that provide volunteer liability insurance require the church to follow at least a few rules in order for coverage to be granted. These rules may include:

• Volunteer applications
• Background Checks
• Signed Waivers saying that the volunteer won’t sue the church

Speak to your agent about these requirements. There are some insurance companies that will allow the church to use the above services through the policy provider at either no charge or at a reduced charge.

Church Liability Insurance Issues

As congregations consider their liability policies it is important to check what liability coverage you currently have and to set a time every year to update the policy and even get competitive quotes on the policy. In today’s world just about anyone can instigate a lawsuit, and if children are injured or hurt then the judgments can escalate in worth.

Whether you are in charge of a church, temple, or mosque, if you have day care or any type of school that is ran, sponsored by the church, or simply on church grounds…then you need to really understand what your church liability insurance covers and what the limits are.

Whether or not the lawsuit is frivolous, you will still need to address it and typically will be required to hire legal support. Church liability insurance can help you pay for legal council at this point and throughout the lawsuit proceedings. But some preplanning and research is needed to protect your church. There are many insurance companies that have reassessed policy limits and restriction when it comes to molestation and sexual abuse.

Check with your carrier and if you don’t have protection from the above, get coverage add it to your current liability

Summary

Church liability insurance can come in the form of a general policy but there are also specific areas that may have to be addressed under additional policies or riders. This includes covering the profession of clergy by having pastoral or professional liability insurance. Other areas that need to be considered include the volunteers of your church and their actions and responsibilities, and covering the church from lawsuits featuring sexual abuse and molestation.

Churches should never overlook liability insurance by hoping that parishioners won’t sue the church. Church liability insurance needs to be reviewed and updated often.

As a type of ground and marine insurance, cargo liability is in effect when the goods are in an insured vehicle either in transit or while waiting at a terminal to be loaded. In fact, cargo liability insurance is divided into two varieties, marine and inland. Both forms are paid for by either a transit company or private contractor to guard against any liability that typically occurs from the time the goods are loaded into the truck or boat, until the cargo is unloaded by the company that bought the policy and delivered.

While the cargo is being transferred from one place to another the policy protects the person driving the truck or operating the marine vessel, the company who contracted to move the shipment, and the actual cargo. When the cargo is verified as delivered undamaged and intact, the insurance policy no longer applies. Liability now changes hands, it becomes the concern the person or company who accepted deliver, or falls to the owner as part of a general liability policy.

Inland or Motor Truck Cargo Liability Insurance

In the United States there is a Federal Law covering minimum levels of cargo liability insurance for the transportation and delivery of freight over land. The minimum levels are:

1. Loss or damage to each vehicle contents – $5,000
2. Loss or damage due to any one incident – $10,000
3. If something in the cargo spills into the street and is ruined, the first $5,000 of product would be covered by #1 listed above, with the company or driver held responsible for what is over and above the $5,000. The damage to property due to the spill that is outside the contents of the cargo is covered up to $5,000.

Again, these amounts are federal minimums and often shipping companies or private contractors will choose to increase the minimums depending on the cargo contents and the potential for damage liability. If property is lost or damaged, these issues are typically decided in a courtroom as part of a lawsuit and not by the police. The suit for damages would often include not just the cost of the product, but also any lost income, delay of business, legal fees, and more. The Motor Truck Cargo liability insurance covers these issues.

Marine Cargo Liability Insurance

Marine Cargo Liability Insurance is intended to protect loss of shipments due to theft on open water. It also protects the ship and its operators from any costs that come from the loss or damage of the cargo, as well as against delays and costs associated with delays and the loss of cargo.

Marine Cargo Liability Insurance has to take into account international trade concerns, delays due to bad weather and other incidents that aren’t as critical with delivery of goods over land. Sea-based transport liability must also consider that the cargo could become water damaged.

Often Marine Cargo Liability Insurance carries both a motor cargo element as well as marine. Often goods are transported over land, then over water, and again over land before ultimate delivery of the cargo can be completed. Being able to combine both land and marine liability insurance protects the company against gaps in policies and can reduce the cost of having two separate policies.

Annual or Single Transit Insurance

Transportation companies or private contractors have the option of two types of cargo liability insurance. They can purchase an Annual Transit Policy that covers all liabilities for the cargo they move through a full year or they can purchase Single Transit Insurance that covers liability for a single delivery.

• Annual Transit Insurance – This type of policy can have mileage limits incorporated in the coverage. This limitation is intended to protect the insurance company from disproportionate use based on the coverage. To manage this type of policy the shipping or trucking company would need to monitor and plan for continuing coverage.
• Single Transit Insurance – This type of liability coverage is typically used by shipping companies or is someone who either doesn’t ship regularly enough to pay for an annual policy or just needs to cover the risk of loosing or damaging one single shipment.

It’s interesting to note that small delivery package insurance, such you would use through a service like UPS or FedEx, originated as a form of Single Transit Insurance.

Summary

Cargo Liability Insurance comes in two basic types which are land and sea. Companies can get a blanket, annual transit policy or purchase a single transit policy for occasional shipments.

Canine Liability Facts

You may not want to think that your dog would hurt anyone, but there are many reasons to take the step of getting insurance against this possibility. The Insurance Information Institute has stated that in 2007 over 1/3 of all insurance claims made against homeowner liability policies were instigated due to dog bites. In the United States in 2007 almost five million people were bitten by dogs, over thirty people were killed by dogs, and the average cost of a dog bite claim was over $24,000.

Depending on the state that you live in there are different legal standards for dog owner liability. Most states will hold the owner liable for any damage an animal does, regardless if there is a prior history. Besides medical and property damage, the awards can also be made for mental anguish, even if the dog is aggressive but doesn’t bite. Some of the states will limit this liability if it is the first time the dog has attacked or been hostile.

Rare in the past, criminal charges are on the rise if the owner is found to be negligent, or if the canine assault is particularly brutal.

Homeowners Insurance versus Canine Liability Insurance

It is important that you know what type of coverage you have on your homeowner’s policy if you have a dog or are taking care of a dog and that dog attacks someone. Check if the policy is only good for attacks that happen on your site, or if you have taken the dog somewhere else, like for a walk.

There are many homeowner insurance policies that exclude paying for a canine attack if you are working out of your home. It is important to contact your insurance company and determine the extent of your coverage.

Because dog-bite claims are on the rise, there are many insurance companies that will have exclusions, conditions, or limits on a typical homeowner’s policy. There are some canine breeds that have even been blacklisted when it comes to liability coverage of any type. If you have one of these breeds you may need to get a specific policy that covers these dog breeds. The blacklist often includes the following breeds:

• Akita
• Chow
• Doberman
• Pit bull
• Rottweiler
• Wolf hybrid

The insurance company may also elect to cover the above breeds, with a change in coverage if the dog bites or attacks someone. At this point they could drop the coverage, charge a higher premium, or demand that in order to keep the homeowner insurance in place the owner must agree to exclude the dog from coverage. This waiver of coverage would mean the dog owner would have to pay for any future lawsuit or claim on their own unless they got separate canine liability insurance.

Canine Liability Insurance Protection

Having canine liability insurance does more than pay for medical bills and protect you from lawsuits if your dog bites someone. This type of insurance can also cover any damage done by the animal to property, whether it is yours or someone else’s. The protection also can extend to your business and any dog that is deemed to be under your control, whether it is your animal or one you are taking care of.

If you are renting a home and have a pet, you are responsible for any damage done by the animal to the property or anyone that comes on the property. If you don’t have canine liability insurance, the owner’s policy is not going to pay for the problems caused by your animal.

Canine Liability Insurance Costs

There are many factors that go into determining the cost of this type of policy. These factors would include if you have some type of protection under your homeowner’s policy and just need to extend this coverage, what type of dog breed you own, and whether or not this is just for your home or you need to cover a business.

Stand alone canine liability insurance policies can start at a couple hundred dollars a year, and increase dramatically depending on the plan limits, the state you live in, plan deductibles and more. Above all, the type of breed and the history of your particular animal will be taken into account when you apply for canine liability insurance.

Before deciding on how much liability insurance is needed, it is a good idea to understand liability insurance and what it encompasses. Liability insurance is technically part of the overall insurance system and provides the insured from lawsuits and claims that may be brought by individuals.

Liability insurance is designed to defend the insured from third party claims, indemnify or pay the sums of money that the insured has been found to be liable for, and to settle all reasonable claims against the insured.

These three tasks that are the responsibility of the liability insurance are what make it an important part of any business insurance. If the business is sued by a third party for some reason, the liability insurance is responsible for ensuring that the business does not lose its financial assets. In many states and or situations, liability insurance is a legal necessity, such as in the case of automobile insurance. This is why it is important to determine how much liability insurance is needed by the business and how much additional liability insurance might be needed.

How Much Liability Insurance is Necessary?

It is not easy to come up with a specific dollar amount that represents how much liability insurance a business should have in place. Typically, businesses have a one million dollar liability policy with a rider for additional liability, if they see the need for more. Additional liability insurance is typically determined by the type of business, the size of the business, the number of clients and the potential for liability claims being brought against the company. Insurance brokers or agents who specialize in liability insurance for businesses can help businesses determine how much liability insurance is necessary for the business and what types of liability insurance should be carried.

Errors and omissions insurance, a term often used in place of liability insurance, is typically needed in larger amounts in businesses where an error could result in many third party claims or an error could result in death which could bring about larger lawsuits. One example would be a civil engineer who designs roadways or bridges. These people or businesses should have additional liability insurance in the event that one of their designs results in many fatalities due to failure of the design. Product liability is a type of liability that requires additional insurance as there is the possibility of impacting many people and having many lawsuits at one time.

Purchasing Additional Liability Insurance

When purchasing the initial policy, it is a simple matter to ask the broker or agent how much it would cost to have additional liability insurance added to the policy. This could also be part of the research when first acquiring the policy. Many insurance companies are able to offer a lower rate when the insurance if first acquired than they can offer once the policy has been in effect. This is simply due to risks increasing over time or the policy having had claims against it that cause the agency to take pause before increasing the insurance coverage. The best case scenario is to determine how much additional insurance is needed when the policy is first underwritten so that these obstacles are not in the way.

If, later in the business life, there are additions to the business it may be necessary to consult with the agent and have the policy increased. In this situation there isn’t much that can be done outside of attempting to negotiate based on a healthy insurance life.

Ultimately, an insurance broker or mediator and an accountant should be consulted to help determine how much liability insurance is needed and how much additional liability should be purchased in order to protect the business fully in the event of a third party lawsuit. Today’s litigious society has placed great demands on the liability insurance market and has brought the need for additional insurance to the forefront of business owners’ minds.

Litigation has been increasing over the past few decades and no end as in sight. As our society becomes more regulated and codified, more causes of action are created that plaintiffs can file under. Tort reform would limit the proliferation of lawsuits, but because Congress is largely comprised of attorneys, this type of change isn’t likely in the near future. To protect hard-won assets of both businesses and their officers from being whittled away by defense costs and possible judgments and settlements, companies should assess their level of liability coverage to make sure that they’re protected against all likely legal threats, and possibly some that aren’t so likely as well.

Liability insurance basically covers claims from a third party against a business that arise as a result of acts of omission or negligence. The standard commercial general liability policy covers claims of property damage or personal injury that arise from these acts, and other liability policies cover other types of damages and causes. Commercial general liability policies are often filled with exclusions that bar coverage for certain acts or circumstances, making it necessary for businesses whose operations may include those excluded acts or circumstances to purchase additional, or more specific coverage.

Some of the more specialized forms of liability insurance include:

Excess umbrella liability coverage: In an era, where multi-million dollar judgments have become commonplace, it may be a good idea to add an additional layer of coverage to your insurance policies coverage limit. An excess umbrella liability adds an additional limit of coverage to all your liability policies. For example, if you’re sued and your insurance policy has a coverage limit of $2 million, and the court awards the plaintiff $3 million, you’re left on the hook for the $1 million. That is, unless you have excess umbrella liability. If, in this example, you had excess umbrella liability coverage of $5 million, that $1 million over your commercial general liability policy’s limit would be covered.

The great thing about excess umbrella liability coverage is that it doesn’t just cover one policy. If you have commercial general liability coverage, directors and officers coverage and product liability coverage, your excess umbrella liability coverage will apply to all three policies, unless barred by exclusions written into the policy.

Foreign liability coverage: Many liability insurance policies only cover occurrences that happen within the United States. For companies with operations abroad, this decreases the effectiveness of this coverage. Fortunately, insurers sell foreign liability insurance, which in general will allow your other policies to apply to occurrences that happen abroad. This coverage is vital for any company that has operations abroad, including just business trips by company officials.

Terrorism liability coverage: In the past, purchasing insurance coverage for terrorist acts may have seemed laughable, but after the tragic events of Sept. 11, 2001, an increasing number of businesses are interested in obtaining coverage for these types of acts. It can be a tough product for insurers to sell, because despite the low probability of these acts happening, the potential losses for an insurer who must pay out terror claims is very high. The federal government has taken steps to help insurers with these claims and to make terrorism coverage more available.

Statistically, the odds of your business being impacted by a terrorist act are relatively low, but these odds are increasing as militant activity worldwide grows. Businesses that provide soft or likely targets for terrorist activity may want to consider this type of coverage.

Sexual abuse liability: This type of coverage typically extends to non-profits who may have employees facing claims of sexual abuse from the populations they serve. This coverage is advisable for hospitals, schools, youth centers, shelters, rescue missions and other organizations that may be responsible for the care of others as sexual abuse claims can be quite expensive to defend and judgments in these cases tend to be high.

Liability insurance exists to protect the hard-won assets of companies, non-profits and individuals from lawsuits. Understanding the risks of loss your organization may face is key to protecting its assets from being lost thanks to the inadvertent mistake of an employee or other mishap.