Set Free Ministries

Insurance Review — Board Response Form

Policy Renewal
June 1, 2026

Board Member Input Request

The leadership team has completed a comprehensive review of Set Free Ministries' insurance portfolio in preparation for the June 1, 2026 renewal. For each of the 13 coverage items below, please review the options and select your recommendation.

Highlighted options (marked ★ Recommended) reflect leadership's suggested course of action. You may agree, choose a different option, or note your reasoning in the comments field. Your selections will be emailed directly to Wayne Downing upon submission.

High Priority — Recommended for Immediate Action
1
Volunteer Accident Policy — Med Pay Increase
High Priority Current: $10,000 Med Pay (no standalone policy)
Ensures volunteers do not need to pursue legal action to recover medical costs. Med Pay is no-fault — the ministry can pay directly. Many volunteers are over 70, increasing exposure. The Umbrella policy excludes volunteer medical bills.
Note: A volunteer's personal health insurance is primary (except Medicare/Medicaid, which pulls from Med Pay). A standalone policy may provide broader protection and will also be quoted for events involving physical activity.
2
Sexual Acts Liability — Increase Limits
High Priority Current: $300K occ / $300K agg — Umbrella excludes
A single claim could exhaust the entire $300K limit with no additional protection above it. There is no umbrella layer covering this exposure.
Note: Option B requires a completed underwriting form. Given no umbrella layer exists above this coverage, at minimum Option A is strongly advised.
3
Employment Practices Liability (EPLI) — Increase Limits
High Priority Current: $300K occ / $3M agg — Umbrella excludes
With 19 employees across two states and anticipated growth to 40–50 staff, employment practices exposure (wrongful termination, harassment, discrimination) has increased substantially. Claims are costly to defend regardless of outcome.
Note: Given the minimal cost difference, Option B ($1M) is recommended. Open item: whether defense costs are inside or outside the limit — clarification from Lightwell is pending.
4
Workers' Compensation Renewal
High Priority Current: 8 employees / $386K payroll (outdated)
The policy has not been updated in several years and no longer reflects actual headcount or payroll. With 19 employees across Michigan and Georgia at $1.3M in total salary, this renewal update is required for legal compliance.
Note: This is a required renewal update, not optional. The premium increase reflects actual growth. Estimate is preliminary; final premium subject to underwriter confirmation.
5
Hardware & Personal Property Limits
High Priority Current: Hardware $16K / Personal Property $151K
Both limits understate the actual replacement cost for a 19-person facility. Leadership has determined to move forward with both increases together.
Note: Hardware increases from $16K to $50K (+$506/yr). Personal Property increases from $151K to $500K (+$770/yr). Combined annual increase: $1,276.
📊 Running Cost Impact Updates as you make selections
Optional coverage changes (Items 1–3, 5–12) $0
Workers' Comp renewal (required — separate policy) +$7,993
Total annual premium impact +$7,993
Medium Priority — Recommended for Board Review
6
Business Income Limits
Medium Priority Current: $100K Earnings / $100K Extra Expense
With $1.3M in payroll, a forced closure lasting several months would generate losses far exceeding current limits. This coverage funds lost income and extra expenses during a covered disruption.
7
Water / Sewer Backup
Medium Priority Current: $2,500 sub-limit / $7,500 deductible
Cleanup from a serious sewer or drain backup can easily run $15,000–$30,000+. The current $2,500 limit provides almost no practical coverage. Facility is not in a flood zone and has no basement.
Note: At only $7 more than Option A, Option B is recommended. Flood (water) coverage is capped at $10K — not recommended since the facility is not in a flood plain.
8
Crime / Social Engineering Fraud
Medium Priority Current: Dishonesty $50K / Electronic Theft $5K / No social engineering
Nonprofits are frequent targets of phishing, business email compromise, and funds transfer fraud. There is currently no explicit coverage for these attack types.
Note: The Theft by Coercion add-on directly addresses social engineering/phishing attacks — a growing threat to nonprofits. At $250/yr total increase, the combined protection is recommended.
9
Fiduciary Liability
Medium Priority Current: Not covered as standalone
If the ministry administers a 403(b) or other employee benefit plan, fiduciary liability coverage may be appropriate. Current D&O policy carries $1M with $1M excess. An ERISA Bond through Brotherhood Works is also an option pending benefit plan review.
Note: A definitive recommendation depends on the ministry's benefit plan structure. Legal counsel should confirm whether standalone fiduciary coverage is needed before the June 1 renewal.
Low–Medium Priority — Informational Review
10
Cyber Liability — Broad to Extended Upgrade
Low–Medium Current: $500K / occurrence — Broad form (max available)
The ministry is at the maximum limit under the current Broad form. The only available enhancement is upgrading to the Extended form, which provides broader features rather than a higher dollar limit.
Note: At $43/year, the Extended upgrade is recommended. The prevention subscription provides ongoing practical value beyond just claim coverage.
11
Excess / Umbrella — Increase Limit
Low–Medium Current: $1M occ / $1M agg — excludes Sexual Acts, EPLI, Cyber, Benefits
Increasing the umbrella to $2M or $5M substantially expands the safety net for catastrophic liability events. Quotes have been received from Brotherhood Mutual.
Note: Lightwell is also seeking clarification on whether a higher umbrella could include currently excluded coverages (sexual acts, EPLI, cyber). The $1,275 difference between options for 3x more coverage makes Option B the stronger stewardship choice.
Low Priority — Administrative Items
12
Vehicle Schedule — Deductible Adjustment
Low Priority Current: 3 vehicles confirmed accurate
Vehicle schedule is accurate. An opportunity exists to reduce premium by raising deductibles on the two Michigan vehicles (2010 Cadillac DTS and 2017 Jeep Wrangler Unlimited).
13
Hired Auto Coverage — Confirmation
Low Priority Current: CONFIRMED active under NOHA form (BGL 71)
Hired auto coverage was confirmed active at a $1,000,000 limit. Both hired and nonowned vehicles are covered for bodily injury and property damage by authorized drivers.
Confirmed — No action required. Coverage is in place at $1,000,000.

Submit Your Selections

When you click below, your selections will be compiled and your email client will open with a pre-addressed message to Wayne Downing. Review before sending.

0 of 12 items selected
1Click Submit — Copy & Email above. Your selections are automatically copied to your clipboard and a new email will open addressed to Wayne.
2In the email that opens, click in the body and press Ctrl+V (Windows) or ⌘+V (Mac) to paste your selections.
3Hit Send. You're done!
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