The Role of the Insurance Industry
By Gregory Love & Kimberlee Norris
Headlines and media accounts of sexual abuse cases in litigation are one of many indicators that we remain in the midst of a sexual abuse crisis. The ongoing cycle begins with a victimized child, leading to civil litigation, followed by a settlement or jury verdict. Unfortunately, this cycle is seldom broken by criminal penalties or civil judgments: sexual abusers are not deterred by stiffening criminal penalties, and the abuser is not the one who pays settlement amounts or monetary damages.
The cycle is broken by effective preventative protocols in the home and within child-serving programs – including church and ministry programs.
When sexual abuse is prevented, no child is traumatized; no civil litigation ensues with the resulting loss of public trust, and no devastating headlines result. The cycle is broken through prevention, with training and effective resources deployed where the child is served — in church and ministry programs.
HOW PREVENTION IS INTRODUCED
Sexual abuse prevention is knowable, but not intuitive. Church and ministry programs must receive effective training in order to prevent sexual abuse. Crisis provides an effective (but unfortunate) motivator; sadly, even crisis will not lead to an abuse-free environment in the church without effective instruction, and the primary ‘communicators’ of instruction are denominational leaders and insurance professionals. However, a closer look suggests insurance professionals are more effective than denominational and associational leaders.
DENOMINATIONAL CHALLENGES
In most denominations, leaders have a background in ministry — not risk management. Even within denominations with a designated risk manager, there are barriers to change. The most common challenge relates to denominational leaders who are unwilling to communicate clear expectations or require change, whether polity permits or not, due to a fear that once new requirements are communicated, downstream churches must meet a higher bar — a standard that churches are already well below.
Some denominational leaders fear that if they communicate expectations or standards they might be joined in lawsuits stemming from abuse allegations from a downstream church, embracing a misguided fear that communicating expectations will result in liability. This misconception remains a real barrier to internal change. Messaging expectations to downstream churches, however, does not create the standard of care — the standard of care already exists. All child-serving organizations, including churches, must take reasonable steps to prevent foreseeable risks. When the church gathers children, child sexual abuse is a foreseeable risk. Communication does not create the risk or liability; the risk of liability already exists.
Churches need effective training and resources to address the risk of child sexual abuse. Too often, denominational leaders are either unable or unwilling to provide clear guidance to downstream churches concerning sexual abuse risk and appropriate steps for prevention. Most insurance professionals, by contrast, are able and willing.
INSURANCE ADVANTAGES
Insurance carriers and brokers play a crucial role in risk management in churches and Christian ministries. From their unique position, they provide a clear voice related to abuse prevention and reporting for church and ministry programs.
Professional Risk Managers
Insurance carriers and brokers are well-versed in risk management. Insurance professionals work with clients to evaluate and manage risks common to churches and ministries: property, security, cyber, financial fraud, personal injury, vandalism, transportation, employment … and sexual misconduct.
Brokers and agents have a unique opportunity to discuss risk management with customers and prospects, as it is an expected part of the conversation to secure insurance coverage. Beyond addressing insurance needs, brokers and agents might discuss how they, and the carriers, can help prevent claims in the first place. This generally includes abuse prevention tools and resources made available to insureds. The best brokers and agents serve as risk managers in this consulting role. Drew Noss, Managing Director and Church/Non-Profit Practice Leader at Higginbotham and Associates, describes how Higginbotham prioritizes the evaluation of sexual abuse risk for church clients: “We know sexual abuse risk is real for churches and ministries, which is why we do not wait for the church to request instruction. We initiate the discussion to ensure the ministry is taking the necessary steps for prevention; when the necessary safety system elements are not in place, our goal is to facilitate change.”
An insurance carrier impacts change through two significant contexts — internally and externally. Internally, the carrier educates its staff of underwriters, actuaries and agents concerning sexual abuse risk and prevention. Andrew Shockey, VP of Philadelphia Insurance Companies, describes this first step: “At Philadelphia Insurance Companies, we prioritize the training of our staff members to understand the risks common to religious organizations. The sexual abuse of children and vulnerable adults is a specific focus of instruction to better equip our insureds to navigate this risk.”
Externally, the carrier provides education and prevention resources to customers through its Risk Control Department. This is accomplished by creating resources or partnering with risk management organizations.
More Than a Suggestion
The carrier has tools at its disposal to drive abuse prevention efforts for its insureds that denominational leaders do not: premium pricing and insurance coverage limits. The best pricing on sexual misconduct liability insurance coverage is typically reserved for organizations taking active measures related to abuse prevention. Carriers might also require that an insured demonstrate use of a robust abuse prevention safety system — such as MinistrySafe — to obtain higher limits of misconduct coverage. Failure to show active use of such a system may result in minimal limits, or the insurer declining coverage altogether.
Seeing the Claims
Insurance carriers have access to the bigger picture. When a church or ministry experiences a sexual abuse crisis, the takeaways come from a single, fact-specific situation. By contrast, insurance professionals are evaluating many circumstances, providing a birds-eye view of liability patterns and common pitfalls. Seeing a variety of circumstances provides insurance professionals with the unique ability to guide ministry leaders through an allegation and help prevent sexual abuse in the future.
RECOMMENDED ‘NEXT STEPS’
Against this backdrop, how should churches respond to the threat of child sexual abuse in ministry programs?
Step 1
Acknowledge that the risk of child sexual abuse is very real. Widespread data indicates that 1 in 4 girls and 1 in 6 boys will be sexually abused before the age of 18, and 90% of victims are abused by someone they know and trust. In the past two decades, child sexual abuse allegations are the No. 1 reason why churches end up in the courtroom.
Step 2
Honestly evaluate whether your church is adequately addressing the risk. The second step requires self-critical evaluation of your church’s current child abuse prevention safety system. Here is where the expertise of a skilled insurance broker or agent is key, as he or she can provide candid assistance. Whether this occurs through an on-site assessment of the ministry’s programs or via a trusted resource such as MinistrySafe’s online self-assessment, the insurance provider can play a significant role in helping a church understand its vulnerabilities in this area of risk management.
Step 3
Leverage your insurance relationship to develop a plan for addressing sexual abuse risk. The best brokers and carriers steer their clients to resources that help them navigate sexual abuse risk, such as MinistrySafe. Skilled insurance professionals help churches choose appropriate limits for sexual misconduct liability coverage, and guide insureds into the development of effective safety systems, including sexual abuse awareness training, skillful screening, appropriate background checks, tailored policies and procedures, and systems for monitoring and oversight.
“Insurance carriers play a vital role in an organization’s abuse prevention efforts,” says Brian Gleason, Senior Risk Manager at GuideOne Insurance. “They offer valuable support in the development of prevention programs and help document the organization’s risk management practices. Underwriting guidelines are typically aligned with industry best practices, allowing carriers to recognize and reward strong abuse prevention measures by extending coverage and sharing in the financial risk.”
CONCLUSION
The risk of child sexual abuse is real. Insurance professionals provide a clear voice related to preventative tools and resources. Insurance carriers, brokers and agents serve a unique and vital role in breaking the cycle of child sexual abuse in church and ministry programs.
Kimberlee Norris and Gregory Love are partners in the law firm of Love & Norris and founders of MinistrySafe. After representing victims of child sexual abuse for more than two decades, Love and Norris saw recurring, predictable patterns in predatory behavior. MinistrySafe grew out of their desire to place proactive tools into the hands of ministry professionals. For more information about the authors, see LoveNorris.com.
