Liability Coverage

Comprehensive General Liability

The Diocesan Master Risk Management and Insurance Program provides a single limit of liability insurance on an occurrence basis in the amount of $1,500,000 for both bodily injury liability and property (of others) damage liability. The Diocesan Master Risk Management and Insurance Program will pay on behalf of the insured all sums which the insured shall become obligated to pay as damages by reason of liability imposed by law or assumed under written contract. The Diocesan Master Risk Management and Insurance Program shall defend the insured in any suit brought forth against it even if the allegations of the suit are false or groundless.

Coverage applies to all properties owned by the insured and to all operations in which the insured either does now or shall engage in. Beyond the standard insurance coverage provided by most insurance contracts, the master policy provides the following additional coverages:

• Liability for personal injury arising out of (i) libel or slander of a person or organization in any oral or written publication; (ii) false arrest, false imprisonment, or detention; (iii) wrongful eviction; (iv) violation of right of privacy in an oral or written publication, and (v) malicious prosecution;
• All employees, volunteers, and unincorporated volunteer organizations are insured; (NOTE: Independent contractors are not employees of the insured and are not covered under the liability coverage of the Diocesan Master Risk Management and Insurance Program.)
• Employee benefits liability insurance to cover errors or omissions in giving information related to eligibility or scope of group life and health insurance benefits, profit sharing and pension plans, stock subscription plans, workers' compensation and unemployment insurance, and social security coverage;
• Worldwide coverage;
• Host liquor liability;
• Coverage for non-owned watercraft under 51 ft. in length ;
• Product liability, including the service of food, is provided for all insured's activities;
• Occurrence form;
• Limits of liability apply per location;
• Advertising liability;
• Employer's liability/Stop gap liability;
• Broad form notice of occurrence;
• Athletic participation liability;

Professional Liability Insurance (Claims Made Basis)

The Diocesan Master Risk Management and Insurance Program provides $1,500,000 combined single limit liability coverage for all sums which the insured may become legally obligated to pay as damages for claims made during the policy period due to injury to which this insurance applies: (1) caused by a medical incident; (2) arising out of counseling; or (3) arising out of teacher professional liability, while acting within the scope and duties of their employment. Coverage is provided for physicians while acting in their capacity as medical directors in insured nursing homes.

Not covered under the terms and conditions of the professional liability insurance section are the following:

• Hospitals
• Lawyers – with the exception of Staff Attorneys
• Architects
• Engineers
• Accountants
• Medical Doctors
• Dentists
• Psychiatrists

Excess Liability Insurance

The Diocesan Master Risk Management and Insurance Program provides an additional limit of liability insurance of $85,000,000, ($10,000,000 for Elder Care facilities) over the primary general liability, professional liability, and automobile liability insurance coverages.

The Excess limits are combined for all coverages and Insureds and are inclusive of Defense Costs.

Directors and Officers Liability, Including Employment Practices (Claims Made Basis)

Officers, directors, or trustees of a corporation or institution occupy a fiduciary relationship with the corporation or institution and, as such, are liable for their actions while acting in that capacity. Directors and officers liability insurance provides protection for corporate and institutional officers in the event that claims are brought against them because of wrongful acts, allegedly wrongful acts, or omissions made while acting in their capacity as directors and officers. Wrongful Acts means "any actual or alleged error, act, omission, misstatement, misleading statement, neglect or breaches of duty committed by an Insured, including Employment Practices Violations, misfeasance, malfeasance, or nonfeasance in the discharge of duties, individually or collectively that results directly but unexpectedly and unintentionally in damages to others".

The Diocesan Master Risk Management and Insurance Program shall reimburse the insureds for sums which the insureds are legally obligated to pay for a claim made against them for wrongful acts and shall include, but not be limited to, damages, judgments, settlements, and costs. Furthermore, the Diocesan Master Risk Management and Insurance Program shall defend and pay for all costs of investigation and defense of legal actions, claims, or proceedings and appeals there from, with the right to choose defense counsel ours.

The Wrongful Act and Miscellaneous Professional Liability Coverage Part limit and retroactive dates under the Diocesan Master Risk Management and Insurance Program are as follows:

Wrongful Act Liability Coverage Part	Retroactive Date	Portion of Limit
	1/31/2003	$5,000,000 excess of $1,500,000
	1/01/2004	$5,000,000 excess of above
	1/01/2012	$4,000,000 excess of above

Misc. Professional Liability Coverage Part	Retroactive Date	Portion of Limit
	01/01/2002	All Other
	06/28/2011	For Legal Services as described in RL 1000 MPCM
	01/01/2012	$4,000,000 excess of $10,000,000 excess of $1,500,000

Total Wrongful Act Limit is $55,000,000 in the Diocesan Master Risk Management and Insurance Program in 2021.

The Diocesan Master Risk Management and Insurance Program shall defend Insured persons in suits alleging Wrongful Acts. Defense counsel shall be assigned by the Diocesan Property/Casualty Insurance Claims Office.

It is essential that all entities report the names of any controlled corporations or foundations to the Diocesan Property/Casualty Insurance Claims Office.

Employment Practices claims are subject to a deductible of $2,500. each loss, applicable to indemnity payments and / or defense costs.

Sexual Misconduct Limited Coverage (Claims Made Basis)

We agree to indemnify and defend (with the right to choose defense counsel ours) the participating entities for Sexual Misconduct Claims first made against a participating entity during the benefit period, subject to and conditioned upon the following special conditions and limitations:

• This agreement provides Sexual Misconduct coverage only to the Catholic Diocese of Cleveland, Ohio; the entities on file with the Diocesan Master Risk Management and Insurance Program or their subsidiaries (“invitees”); and any corporation, firm, or other legal entity named, controlled, or represented by the Diocese of Cleveland, Ohio, or by its Bishop, and subsidiaries of those entities. Notwithstanding anything to the contrary, all education invitee participants and their affiliated entities and affiliated individuals are expressly and fully EXCLUDED from this Sexual Misconduct Limited Coverage as of July 1, 2023, and going forward. THIS COVERAGE DOES NOT PROTECT OR PROVIDE A DUTY TO DEFEND, REIMBURSE DEFENSE COSTS, OR INDEMNIFY ANY INDIVIDUAL ALLEGED TO HAVE ENGAGED IN ANY SEXUAL MISCONDUCT.


• The benefit limit for this coverage provides payment for actual damages, legal fees, and all other loss adjustment and defense costs. The entity must give notice of such actual, attempted, or alleged Sexual Misconduct to us within thirty (30) days of first receipt of such knowledge or this coverage agreement will not apply.


• Benefit Limit:
  1. The benefit limit for this Sexual Misconduct coverage for each participating entity (including for each invitee’s affiliates, as indicated below) is a total maximum of $500,000 per Claim and $500,000 in the total maximum aggregate for all Sexual Misconduct Claims properly reported during the annual benefit period. For the avoidance of doubt, each participating entity that is an invitee shares these limits with its affiliated entities and its affiliated individuals such that they do not each have their own separate limits (except for education invitees and their affiliated entities and affiliated individuals, who are excluded as of July 1, 2023, and going forward as set forth above).
  2. The benefit for this coverage shall erode beginning with the first dollar of defense costs related to the Sexual Misconduct Claim. All defense costs shall be within and not in addition to the benefit limits.
  3. The benefit for this coverage shall be considered secondary to any insurance policy in force that covers Sexual Misconduct. For the avoidance of doubt, that means that this coverage shall NOT apply excess to any applicable insurance policy that covers Sexual Misconduct and shall NOT be in addition to nor increase the limits of such insurance policy, but shall only provide coverage for deductibles or retentions associated with such insurance up to a maximum of the benefit limits set forth in paragraph 1 above. If no applicable insurance policy that covers Sexual Misconduct exists, then the benefit for this coverage shall be fully available up to the benefit limits set forth above. The benefit limits set forth in paragraph 1 above are subject to and limited by this paragraph 3.


• Definitions:
  1. "Claim(s)" wherever used herein, shall mean any information that may give rise to damages covered under this form, including suit(s) brought in connection wherewith, which the entity becomes aware of and provides written notice of the same to the Diocesan Property/Casualty Insurance Claims Office.
  2. "Sexual Misconduct" wherever used herein, shall mean: (a) with respect to a person who is a minor or who is legally incompetent: sexual abuse or sexual molestation, including but not limited to, any sexual conduct or sexual contact, whether or not there is apparent consent of the alleged victim; (b) with respect to an individual with whom an Insured has a counseling relationship: sexual exploitation, including but not limited to, the development of, or the attempt to develop, a sexual relationship whether or not there is apparent consent of the alleged victim; or (c) with respect to any other person: sexual abuse or sexual molestation including but not limited to, any unwanted sexual conduct or sexual contact.
  3. "Sexual Misconduct Claim(s)" wherever used herein, shall mean any Claim alleging Sexual Misconduct. Continuous or multiple related alleged incidents of Sexual Misconduct, regardless of the number of claimants or alleged victims, shall be deemed a single Sexual Misconduct Claim, with the term “related” including but not limited to all acts of Sexual Misconduct by a single alleged wrongdoer or by alleged collaborating wrongdoers.


• Diocesan Entities with any questions should contact the Insurance Office regarding sexual misconduct coverage.