Small Church Insurance
Are you looking for an affordable small church insurance policy? We understand insurance can be expensive no matter the size of your church. No matter if you are just getting started and you are renting a church building, own a small church, or your church can hold thousands of members. The price of insurance for churches can still feel expensive for all size churches.
In 2019 there were 3,000 new protestant churches that opened in the United States, however there were 4,500 churches that had to close their doors. We want to help churches to be able to afford their church insurance cost, so they can keep their doors open.
We also want to make sure churches have the needed church liability insurance coverage in place. For small churches this balance of church insurance coverage and cost can be a tricky situation.
How To Properly Insure a Small Church
Small church insurance policies need to have the core church liability insurance coverages built into the policy. You want to make sure the church insurance program, includes the different layers of insurance protection, without costing a small church a fortune.
While you may not need to maximize your church liability insurance limits, you will want to have many of the key insurance coverages a church needs. These coverages include:
- General liability insurance
- Church Property Insurance
- Directors’ and officers’ insurance
- Abuse and molestation coverage
- Pastoral counseling insurance
- Religious beliefs insurance coverage
- Crime policy
- Business Personal Property Coverage
- Workers’ compensation insurance
- Business Auto Insurance
While some of these coverages may not apply to your small church insurance program, most of these will be needed. We attempt to establish insurance limits for each of these lines of coverage, based on the size of your church congregation and number of kids involved in your children’s ministry.
Insurance is one tool for churches to use in order to transfer liability to an insurance company. It is also important for churches to take proactive risk management measures to help reduce the possibility of an insurance claim.
Small Church Insurance: Renting a Church Building
When a new church or small church is renting a commercial building, the landlord will typically require your church organization to have church insurance. Liability insurance for churches, not only helps protect your organization, but it can extend additional liability insurance protection to the building owner.
Most landlords will require a church to obtain one million dollars of liability insurance coverage. Their sole interest is usually the main general liability insurance coverage. While more insurance savvy landlords, cities, and counties, will require all the specific coverages a large and small church insurance policy needs to have in place.
Often these insurance coverage requirements can stipulate higher than needed insurance coverage limits. It is important for churches to read and understand the insurance requirements outlined in their lease agreement.
Church insurance brokers can help you navigate through the insurance requirements set forth by an outside organization. It is always best to have your insurance agent review the insurance requirements prior to signing any legal documents.
While your lease agreement may only require the minimum amount of insurance, it is important to consider all your church insurance liability exposures.
Small Church Insurance: Building Coverage
When working with a church insurance specialist, they will help not only help a church with their liability insurance but also their church property insurance needs. Your church building insurance is a very important coverage to ensure it is correctly insured. With the rise in inflation being around 8.6% it has become vital for property owners to review their church property insurance coverages. Many insurance companies only include an inflation rider that equals between 1% to 4%. This means your property insurance may not be keeping up with the current state of inflation.
Small church insurance companies also want to ensure your buildings are being properly maintained. As many churches are 70 plus years old, churches may need some major building improvements. Depending on the size of your church construction project, you may need to obtain additional insurance coverage. This additional coverage is known as course of construction project insurance. Your church insurance agent will be able to help you obtain this short-term insurance policy. They may also determine that based on the scope of your church project, that purchasing an additional insurance policy will not be needed.
As a church building owner, it is important to budget for regular maintenance items. This includes having the funds to paint the church building’s, update plumbing lines, upgrade electrical panels, replace a worn-out roof, and replacing burnt out light bulbs. You may also need to budget for updating your churches sound equipment.
Church property insurance is not designed to cover maintenance items. All insurance companies have clear exclusions contained within their policies for failure to maintain a church property. Insurance in general is designed for sudden and accidental damage. Properties not maintained property are not considered accidental damages, but damage caused by failure to maintain.
Workers' Compensation Insurance For Churches
Many small church insurance programs will need to consider including workers’ compensation insurance coverage. Not only is it required by law, it provides your employees with the needed insurance protection when a work related accident happens.
This coverage provides insurance protection up to $1,000,000 for a single incident. This includes not only medical bills, but also the loss of income related to not being able to work due to your injury.
Injuries happen to any nonprofit organization, and they can happen to a church.
The good news is most small church insurance cost are relatively low related to the coverage being provided. Many smaller churches end up paying the minimum required amount from the insurance company. This is due to the fact that many small churches have a small amount of payroll.
Seek Help From A Small Church Insurance Agency Expert
Integrity Now Insurance Brokers has been helping churches with their insurance needs for years. They have the needed church insurance experience your church requires when looking for an affordable small church insurance policy.
When you are ready for our help, we are here to help you with your ministry insurance. Reach out to one of our insurance agents, and see how we will be able to help your church.