This type of coverage sounds simple on its face but it's a bit more complicated. Claims-made insurance expires. Last year's  claims-made policy is expired for all time. However, this year's policy covers claims reported this year which may have occurred last year. For example, a claim of misconduct at a church that occurred in 2014 is reported Jan. 1, 2017.  Even though the church's policy coverage for claims-made began in January of 2017, the same day the incident was reported, the policy will not cover the liability because the incident took place before it was established. A church covered by a "claims-made"policy should notify its agent of an incident as soon as it's been made aware of an incident of potential liability.

Problems sometimes arise when church officials decide to change from a claims-made to an occurrence policy.  When your claims-made policy
 expires, it will expire for all time back to your Retroactive Date. If a claim is reported two months into your new coverage for a sexual misconduct event that occurred in 2003, you will have NO coverage for this event. The occurrence form covers only events since policy inception or the Retroactive Date period. However, this problem does not exist when changing from occurrence form to claims-made form policy. Church officials should consult an agent to clarify their coverage.

Furthermore, officials should be advised that by cancelling their church's Insurance Board (IB) policy, or by allowing it to lapse, may expose the church to increased liability. Carefully review the terms of your new insurance policy, and we highly recommend that you consult your insurance agent regarding this subject as soon as possible. The Insurance Board provides coverage on a "claims-made" basis for incidents that involve employee benefits, pastoral services, counseling, sexual misconduct, as well as, liability for decisions made by directors and officers.For more information about policy coverage read or consult he local agent, Linda A.Senez,CPCU Insuranceboard@senezins.com or by business phone at 443.345.1055 or cell at 410.409.5154.