Keeping the Lights On
Tithes and donations are essential for churches and schools to keep their doors open. So, if there is a case of theft, an institution needs to make sure they’re covered.
The commercial property policy provides limited protection. The ‘building’ part of the policy would not respond to an incident, and ‘business personal property’ is designed to cover furniture, fixtures, equipment, and stock…but not money and securities.
Sometimes a property policy will have an endorsement adding ‘money and securities’, but this is covered at a small sublimit and has restrictive ‘cause of loss’ conditions.
A Crime Insurance Policy is designed to cover this risk exposure. While the forms might differ from one carrier to the next, a basic crime policy provide a collection of coverages bundled into a insurance ‘package’. The following is an example of a crime policy ‘package’.
|Money & Securities (inside the premises)||25,000||500|
|Money & Securities (outside the premises)||25,000||500|
|Forgery & Alteration||100,000||1,000|
A few examples can effectively illustrate these coverages…
- Money & Securities (inside the premises) – A robbery occurs on school premises and cash is stolen from the office.
- Money & Securities (outside the premises) – On the way to deposit money the Monday after Sunday offering, a church leader is robbed and cash is stolen.
- Forgery & Alteration – An unscrupulous school secretary forges the treasurer’s signature on a check made out to the secretary’s husband’s company.
- Employee Dishonesty – An associate pastor manages the church’s finances and has been steadily siphoning funds over the past 10 months.
A stand-alone Crime Policy covers this major risk-exposure for churches and schools.