UMI Minimum Insurance Requirements Template

[SAMPLE] Annual Conference
Minimum Insurance Requirements

The Book of Discipline 2012 Par. 2532.2 requires local church trustees to annually review and report on the adequacy of local church property and liability insurance coverage “to ensure that the church, its properties, and its personnel are properly protected against risks.”  Since 1797, the Book of Discipline has provided that the property and assets of local churches are held in trust for the benefit of the denomination.  Inadequate insurance puts local church property and assets at risk, including the denomination’s trust interest therein.  Therefore, Trustees of the [SAMPLE] Conference, representing the denomination’s trust interest, have adopted the following minimum insurance requirements for local churches:

COMMERCIAL PACKAGE POLICY, to include the following minimum limits:

  • Buildings, Organs & Contents                 Insured to Replacement Value, “All Risk” Coverage
  • Fine Arts                                                       $25,000
  • Comprehensive General Liability           Occurrence      $1,000,000      Aggregate         $3,000,000
  • Pastoral Counseling Liability                  Occurrence      $1,000,000      Aggregate         $3,000,000
  • Hired and Non Owned Auto Liability      Occurrence      $1,000,000      Aggregate         $3,000,000
  • Employee Benefits Liability (EBL)          Occurrence      $1,000,000      Aggregate         $1,000,000
  • Medical Payments                                     $10,000
  • Sexual Misconduct Liability                      Occurrence      $1,000,000      Aggregate         $2,000,000
  • Crime / Employee Dishonesty                Occurrence      $100,000

DIRECTORS & OFFICERS (D&O) POLICY, including the following minimum liability limits:

  • Directors’ & Officers                                   $1,000,000
  • Employment Practices Liability (EPL)    $1,000,000 (including Sexual Harassment)

WORKERS’ COMPENSATION POLICY, including supply clergy

  • Bodily Injury by Accident                      Each accident   $1,000,000
  • Bodily Injury by Disease                      Policy limit        $1,000,000

UMBRELLA POLICY (Excess Liability) – An Umbrella policy is suggested but not required.

This excess policy must extend over Commercial General Liability, Pastoral Counseling, Employee Benefits Liability, Owned Auto, Hired & Non-Owned Auto and Workers Compensation.  A higher per occurrence limit may be appropriate based on specific risk characteristics such as church size and/or scope of operations and ministries.

  • Per Occurrence Limit                           $1,000,000 (minimum)            Aggregate         $1,000,000

To download a copy of the United Methodist Insurance minimum insurance requirements template, please click here.  (Please right click and choose “Save As” to save a copy.)

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