When we purchase insurance, we are looking to transfer the possibility of a relatively large loss in exchange for known payments otherwise known as “premium.” This can be a significant expense, and while we may be aware that there are limits and exclusions on an insurance policy, we hope that when something goes wrong, the policy will respond to help us. Let’s be honest, it would be disappointing to discover your damaged property isn’t covered in the way you expected.
Rather than relying on hope, it is good to spend some time becoming acquainted with your insurance opportunities to make sure your policy meets your entity’s needs. Keep in mind that in our church we have a strategic advantage in that we work together, and the lowest legal entity recognized by policy in our structure is the conference, so the solutions have to work with the conference as a whole. In this article, I will walk you through five coverage limitations and exclusions along with the different ways to secure coverage.
Disclaimer: Please note that the information below is not comprehensive and does not include all policy exclusions and limitations. Please work with your conference to identify all exclusions and limitations and explore the best insurance solution for your organization. Different organizations have different needs and risk tolerance, so please consult with your conference for further guidance and coverage information.
Property Coverage for Church Signs
From an insurance policy standpoint, there are two types of church signs:
- A church sign connected to the scheduled building structure, and
- A church sign not connected to the building but still on church property.
For the first option, the existing building limit of insurance includes coverage for the church sign that is connected to the building within the stated value. It is important to review your existing insurance values to ensure that the limit is sufficient for the replacement of the church sign in addition to the building.
For the second option, when the sign is not connected to the building, there are limited coverable causes of loss. The church organization needs to work with their Adventist Risk Management, Inc. (ARM) account executive (AE) to add the sign to the schedule on the insurance policy. Once the church sign has been added (scheduled) to the policy, all available coverable causes of loss are included to cover the church sign.
Property Coverage for Fences, Retaining Walls, and Radio or Television Antennas
The same principle for church signs applies to outdoor fences, retaining walls, and radio or television antennas. If a fence, retaining wall, or antenna is directly connected to the building, then the building insurance limit should include the cost to replace these items. Some of these items can be very costly to replace, so make sure the statement of values or insurance amount is sufficient to covers such items in addition to the building structure itself. When a fence or retaining wall or antenna is not connected to the building, it needs to be added to the policy by scheduling it. By doing that, you will have coverage for covered causes of loss from your property policy.
Property Coverage for Paved Surfaces
Do you have any paved bridges, walkways, or patios on the church or school property? If so, is it worth insuring? Please note that paved surfaces are excluded from the property policy unless the insured organization submits a request and schedules the item on the policy.
General Liability Coverage for Gymnastics
If your school or church participates in or has a gymnastics program, it is essential that you work with your conference or directly with your AE. Your AE can help you properly complete and submit the insurance application, ensuring that coverage has been secured for your organization. It is also important to keep in mind that liability coverage for gymnastics is excluded until an application is completed and submitted to ARM. Gymnastics injuries tend to be very serious and sometimes catastrophic, so please work with your parent organization. If you are planning to offer this activity, notify ARM by contacting your account executive.
General Liability for Health Clinics
The topic of professional liability insurance for health fairs that include medical and/or dental services requires its own dedicated article due to the complexity, coverage limitations, and various risks and potential liabilities. Please refer to this article for more in-depth information on “staying protected while hosting a health fair.”
First, it is important to understand that the existing General Liability policy for a conference or church entity excludes coverage for medical professional liability. Church organizations should not offer medical or dental services unless all risks are considered and insurance coverage is secured. In other words, every time a church wants to organize a dental or medical clinic, you must go through the application process to ensure coverage is in place for the event.
Premiums will vary depending on how large the event is and the number of volunteers and medical/dental procedures involved. The recommended medical professional liability limit is $10 million per event. But does the local church have what it needs to secure this coverage for any and all health fairs?
For small health screening events, such as when a church checks blood pressure or weight, there is coverage on the General Liability for this “incidental medical malpractice” exposure. For these types of events, we ask that neither the church nor its volunteers diagnose or provide medical consultation to the participants. It is appropriate to have handouts from a third party, such as WebMD or the American Heart Association. These resources can be handed to the participant along with their results. This allows the participants to interpret their results and decide on the next steps.
Finally, for events such as dental, medical, and vision clinics that are put together by other organizations, these organizations should be vetted carefully for items such as:
- Medical record retention
- HIPAA/PHI security
- Credential verification/retention of medical professionals
- Equipment calibration
- Statutory laws, etc. Rental/use contracts/agreements should be reviewed by local legal counsel.
Final Thoughts
All insurance policies have exclusions and limitations. It is your right and responsibility to ask, study, and request additional information from your insurance agent or account executive. If you have any questions about ARM insurance policies, your conference works with an ARM Account Executive who can provide further assistance.
