Fidelity Liability Insurance

Fidelity Liability Insurance protects your church against dishonesty, fraud and forgery both from those within your church community and people outside your parish.

Canon law requires Fidelity coverage.

Fidelity Insurance specifically protects:

  • Checking and other financial accounts
  • Donation, plate collections and other contributions
  • Income from daycare, tuition and other revenue-generating sources

Coverage Types

Employee Dishonesty

  • Protects against dishonesty by:
    • Employees
    • Directors
    • Trustees
    • Volunteers
  • Coverage is per occurrence
  • Deductible applies

Forgery & Alteration

  • Protects against loss from fraudulent checks, account withdrawals and promissory notes
  • Covers actions by those who are not employees, directors or trustees
  • No deductible applies

Risk Minimization

The following steps will help reduce the risk of financial loss and must be followed to qualify for immediate coverage:

  • Hire an outside CPA to conduct an annual audit
  • Have accounts reconciled by someone who does not have check-signing authority
  • Countersign every check worth at least $1,000
  • Have at least two people count every collection

How Much Fidelity Insurance Do You Need?

  • At least 25% of your total annual revenue or five percent of your total assets
  • Do not purchase more than your total annual revenue

Policy Application

  • Coverage is immediate – effective the date you are approved
  • You must explain your auditing process if:
    • The person in charge of your audits is not a CPA
    • An annual independent audit is required for coverage of the rector's discretionary fund 

This is a summary of the coverage provided by The Church Insurance Companies1. The actual insurance policy or certificate should be consulted for complete details of coverage. In the event that the information on this web page conflicts with the actual insurance policy, the actual insurance policy shall govern.

1The Church Insurance Company of Vermont, The Church Insurance Company, and The Church Insurance Agency Corporation. 

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