Directors and Officers Liability Insurance protects directors and officers, including employees, trustees, volunteers, or committee members and any other person acting on behalf of the church or at the direction of an officer or board of directors of the church for their personal liability arising out of actual or alleged negligence, errors, misstatements, or breach of duty in their oversight responsibilities.
Key exposures include
- liability arising from wrongful dismissal
- employment practices
- contractual obligations; and
- the general safety and well-being of church employees and members
Even if a third-party claim is completely groundless, defence costs can be substantial.
The General Council Executive expanded the existing Corporate Directors' & Officers' Insurance Program to include all congregations effective December 1, 2010, resulting in consistent comprehensive protection ($10 million per claim/$25 million annual aggregate limit).
The program has been extended to congregations on a NO COST basis. This coverage is renewed annually every December 1st.
Why This Coverage is Important
The United Church of Canada has been concerned that many churches have either not carried insurance for their directors and officers or purchased coverage that is not broad enough in scope.
The efforts of staff and volunteers are most appreciated, and it is inappropriate for anyone to be subject to potential personal liability without adequate insurance protection.
Recognizing the financial challenges that we all face in today's environment, we have decided to use surplus funds generated within the national church program's self-insurance structure to pay the premium for this insurance.
If you wish to discuss this direction with the General Council Office, please contact: