Workers' Compensation for churches

Why Does a Church Need Workers’ Compensation?

Exterior of a church building

Managing religious activities is an important element of running a church, but the job doesn’t end there. Managing funds, ensuring staff safety, and other tasks are all equally critical.

To guarantee that all obligations are handled efficiently, the church and its employees must have trustworthy, comprehensive worker’s compensation insurance coverage. A reliable church insurance coverage plan helps preserve financial stability while providing personnel with a sense of security in the event of unanticipated accidents or events.

While most respectable church insurance companies include workers’ compensation insurance as part of their complete package program, it may be overlooked if the church management doesn’t actively request it. But what is workers’ compensation insurance, and why is it necessary for a church? Continue reading to learn everything you need to know.

Injured woman in an ambulance

What Is Workers’ Compensation Insurance?

Workers’ compensation insurance protects both the company and the employees financially in the event of a work-related injury. The policy provides complete coverage for practically all work-related accidents, injuries, and deaths, making it an important component of the entire workers’ compensation scheme. The plan covers:

  • Lost income due to job-related injuries or illnesses.
  • Medical bills resulting from job-related injuries or illnesses.
  • The coverage given to the employee’s bereaved family in the event of their death in a job-related accident.
  • Volunteer workers’ compensation
  • Covers specific volunteers you ask for an extra premium

Churches will typically have two different rating factors that impact their overall insurance premiums.  Most church staff fall under the same rating code no matter if they are a receptionist or the churches Pastor. The next rating factor deals with your gardeners and janitorial staff.  As this rate is much higher, if you are using an outside company it is vital that you obtain their insurance coverage.  By obtaining proof of insurance from the outside company, you avoid having to pay for their employees insurance.

Why Is It For Churches?

Even though most church operations are conducted on-site or indoors, personnel can still incur injuries, become ill, or have accidents that cause them considerable physical and mental anguish as well as financial hardship. Moreover, employees’ salaries may be lost if they cannot return to work due to their condition.

This is especially relevant since, like in California and several other states, churches can opt out of state disability insurance coverage. In a worst-case scenario, if the employee dies or cannot work for a long amount of time due to a serious accident, their dependents will suffer as well.

The church will be responsible for compensating lost income, treatment costs, and dependent expenses if it doesn’t have workers’ compensation insurance from a reputable church insurance company. With the coverage in effect, you may rest comfortably that the church insurance provider will meet the employee’s demands without depleting the church’s resources.

Provides Employees a Sense of Assurance

Like most other businesses, churches rely on personnel to run their daily operations. All day-to-day operations are prone to serious disruptions without a competent staff that continuously looks after the church’s property, gatherings, and transportation. Such disruptions might harm the overall community and the church’s image in the long run.

However, to hire competent staff, you’ll need to develop some safeguards to ensure that employees have the peace of mind they require from their jobs. Workers’ compensation insurance gives employees a sense of security and allows them to continue doing their jobs without fear of being fired. The policy protects employees while relieving the church’s management of any undue responsibility.

If you’re looking for a reliable church insurance company, Integrity Now Insurance Brokers is the best choice for you. As one of the leading church insurance companies, we’ve helped protect the ministries in Arizona, California, Colorado, Nevada, Ohio, Texas, and Washington. We offer an extensive range of services including, workers’ compensation insurance, house of worship insurance, commercial auto insurance, church property insurance, and more. Get in touch with us today!

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