The 2008 Book of Discipline of the United Methodist Church in Paragraph 2532.2 states, “The board of trustees shall review annually the adequacy of the property, liability, and crime insurance coverage on church-owned property, building, and equipment. The board of trustees shall also review annual the adequacy of personnel insurance. The purpose of these reviews is to ensure that the church, its properties, and its personnel are properly protected against risks.” Therefore, every United Methodist local church’s Board of Trustees has a responsibility and duty to ensure that the church has secured adequate insurance against all these risks.
In order to fulfill its duty, the Board of Trustees needs to secure comprehensive property insurance for all its facilities. The liability insurance should include basic liability coverage as well as sexual abuse/misconduct coverage, directors and officers liability coverage, crime, and employment practice liability coverage. Furthermore, the personnel insurance must include Workers Compensation coverage.
Churches are not exempt from the requirements of state workers’ compensation laws and they cannot afford to operate without workers’ compensation insurance coverage. In summary, the local church’s Board of Trustees can fulfill its duty under Paragraph 2532.2 by carefully arranging comprehensive insurance protection for property, liability, and personnel issues.
