Fugitive taking cover inside English diocese (7)
I believe the answer is:
escapee
'fugitive' is the definition.
(escapee is a kind of fugitive)
'cover inside english diocese' is the wordplay.
'cover' becomes 'cap' (cap is a kind of cover).
'inside' indicates putting letters inside.
'english' becomes 'E' (abbreviation).
'diocese' becomes 'see' (I've seen this before).
'e'+'see'='esee'
'cap' inserted into 'esee' is 'ESCAPEE'.
'taking' is the link.
(Other definitions for escapee that I've seen before include "One who got away" , "One breaking free" , "One breaks out of prison" , "prisoner on the loose" , "One who's broken out of confinement" .)