Every organization faces liability risks that can lead to costly lawsuits. While it’s impossible to predict every claim, identifying common exposures and taking proactive steps to reduce risk can help protect your mission and financial stability.

This guide explores key liability risks, practical prevention strategies and why partnering with a specialized insurance carrier is essential.

Why liability risk management matters

Liability claims can disrupt operations, damage reputations and drain resources. From employment-related issues to accidents during sponsored activities, liability exposures are everywhere. Understanding these risks is the first step toward effective risk management.

Common liability exposures

Sexual abuse

Incidents of sexual abuse are among the most serious risks for mission-driven organizations. Lawsuits often allege negligence in:

• Conducting proper background checks.
• Supervising minors effectively.
• Responding appropriately to suspected or reported abuse.

Risk reduction tip: Implement rigorous screening processes, mandatory training and clear reporting protocols. Learn more at churchmutual.com/abuse.

Libel and slander

Words matter. Libel (written or visual statements) and slander (spoken statements) involve false, malicious claims that harm reputation. These can occur in newsletters, social media posts or public meetings.

Risk reduction tip: Establish communication policies, train staff on responsible messaging and review public statements for accuracy. Consider developing a social media policy for the organization and employees.

Errors and omissions by directors

Directors and officers are expected to act responsibly and within the law. Failure to do so can lead to claims involving:

• Conflicts of interest.
• Poor judgment or improper expenditures.
• Exceeding organizational authority.
• Discrimination or mishandling admissions and financial aid (for schools).

Risk reduction tip: Adopt a clear code of conduct, provide governance training and consider adding Directors & Officers (D\&O) liability coverage to your policy.

Sponsored activities

Events and programs can expose your organization to liability, especially if they involve physical activity or vulnerable populations. Ask the following questions:

• Is the activity age-appropriate?
• Have we planned for safety and supervision?
• Do participants have the ability to engage safely?
• If alcohol is served, ensure appropriate controls are in place to address liquor liability exposure.

Risk reduction tip: Conduct risk assessments before every event, secure proper waivers and use contracts when working with vendors.

Automobile use

Liability extends to vehicles your organization owns, rents or borrows — and even personal vehicles used for organizational purposes. Accidents can lead to significant claims.

Risk reduction strategies:

• Use qualified drivers and maintain vehicles.
• Enforce a no-cellphone policy while driving.
• Ensure controls are in place for all drivers, even those using personal vehicles, to include motor vehicle record reviews, confirming adequate insurance coverage and proper maintenance.

Premises liability

Anyone using your building — staff, volunteers or visitors — can become a liability risk. Slips, falls and equipment misuse are common causes of claims.

Risk reduction steps:

• Maintain safe conditions throughout your property.
• Provide training for equipment use.
• Limit access to necessary areas only.

Your insurance company’s role

Insurance has the potential to be your safety net when prevention isn’t enough. Work with your carrier to ensure your policy aligns with your exposures.

Some key policies to consider:

• General liability
• Sexual misconduct liability
• Directors and officers liability
• Auto liability
• Property coverage

When an incident occurs:

• Notify your insurer immediately.
• Don’t admit fault — let the insurer investigate and assist in the handling of the lawsuit.

Why choose a specialized carrier?

Mission-driven organizations face unique risks that generic policies often overlook. Partnering with a specialized insurer like Church Mutual provides:

• Purpose-driven protection: Policies designed to address the unique needs of organizations that serve and inspire others throughout the United States, including religious organizations of all denominations, nonprofits and human services organizations, camps and conference centers, sports and outdoor recreation organizations, as well as public and private K-12 schools, colleges and universities.
• Trusted expertise: More than 125 years of experience and industry-specific risk insights.
• Support beyond the policy: Resources, training and proactive tools to help you reduce risk and prevent incidents before they happen.

The bottom line

Liability exposures are unavoidable, but they don’t have to derail your mission. By identifying risks, implementing preventive measures and securing a comprehensive insurance policy, you can help protect your people, property and purpose.

Explore Church Mutual’s risk management resources, including expert articles, checklists and guides.

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This material may include only a general description of insurance coverages and does not include all terms, conditions, and limitations found in Church Mutual Insurance Company, S.I. (“Church Mutual”) policies. The insurance policy, not any general descriptions of coverage that may be found in this material, will form the contract between the insured and Church Mutual. Neither Church Mutual nor its parent company, Church Mutual Insurance Holding Company, Inc., its subsidiaries, officers, employees, representatives, or agents shall be liable to any party for the use of any information of statements made or contained herein. The information contained in these materials is intended solely to provide general guidance on topics that may be of interest to you. While we have made reasonable efforts to present accurate and reliable information, Church Mutual Insurance Company, S.I. and its affiliates disclaim all liability for any errors or omissions or for any actions you take or fail to take based on these materials. The information provided may not apply to your particular facts or circumstances; therefore, you should seek professional advice prior to relying on any information that may be found in these materials.