Church Insurance Quotes: 5 Things You Must Review Before Switching to a New Church Insurance Company

1. Church Liability Coverage Limits

General liability insurance coverage limits are the maximum amount of money an insurance policy will pay out in case of a claim. General liability covers slip and fall claims, property damage to others, and bodily injury liability.

For churches and religious organizations, your commercial general liability policy is not covering liabilities related to abuse and molestation insurance, directors and officers insurance, employment practice liability insurance, religious expression insurance, and pastor’s religious counseling liability. These coverage enhancements must be added to the policy by endorsement and may provide lower coverage limits.

This general liability limit is essential to inspect when reviewing church insurance quotes because it will determine how much coverage you have for potential bodily injury claims. If the limits are too low, you may not be adequately covered in the event of a loss.

Our church insurance agents will review the coverage limits to ensure your church is adequately insured, and they will recommend adding an umbrella policy for added protection.

2. Church Property Insurance Replacement Cost Coverage Limits

Church building insurance offers property replacement cost coverage, which protects against physical damage to property, including vandalism insurance for churches, due to covered events.

With the recent rise in inflation, small church buildings are underinsured significantly. Integrity Now Insurance Brokers finds that large churches are underinsured by several million dollars, creating a significant coinsurance issue.

Church insurance providers are attempting to increase property limits by the standard 6 percent inflation protection is far from adequate.

Religious institutions obtaining quotes must insist on getting a copy of the current replacement cost estimate to see how the building values are being calculated. Ensure the quality score is not set to basic and the building type makes your church (basic church building, elaborate church building, synagogue with Sunday school classrooms, contemporary house of worship building).

3. Comparing Coverages Between Church Insurance Companies

Before a church signs the dotted line on the cheapest church insurance quote, review the property and liability insurance coverage limits. Also, review the contact language within the policy with a church insurance consultant specializing in churches.

Several church insurance companies offer insurance for churches. However, not all insurance companies are created equal. Unfortunately, a well-known national insurance company specializes in church insurance, but the contact language leaves much to be desired.

The coverage limits provided by this not-so-great church insurance company do paint a great picture. However, the contact language within the policy makes it difficult for churches to gain access to the limits they are paying for.

Integrity Now Insurance Brokers independent agents only recommend nonprofit insurance companies that offer insurance language written in the church’s favor more than the insurance company’s. Yes, all insurance policies have limitations and exclusions, but we do our best to screen out the worst offenders.

4. The Insurance Policy Form Coverage is being written on (Basic, Broad, or Special)

Insurance agents can select different policy forms when writing insurance for churches. These policy forms are broken down into three separate categories.

Basic policy Form: A basic form offers limited coverage and should never be offered to churches by insurance agents. The Basic Form will offer the most minimal coverage and the lowest premium.

Broad Policy Form: A Broad Form offers more coverage but still can leave churches underinsured without the proper endorsements or limits. This coverage form should not be used unless it is the only option available to a policyholder.

Special Policy Form: The Special policy form offers the most comprehensive insurance coverage and should be the only insurance coverage form a church should have in place. Integrity Now Insurance Brokers only writes church insurance on the Special Form.

When reviewing your insurance for religious organizations, ensure your policy and quotes obtained are written on a special form. While your church insurance cost will be lower with the broad and basic coverage form, when you attempt to file a claim, this is when your place of worship will go bankrupt.

5. Policy Exclusions and Limitations

Policy exclusions and limitations are the components of a church insurance policy that limit the coverage offered. These components will be stated explicitly in the policy. They can include restrictions on types of coverage, coverage amounts, and situations in which claims are not eligible for filing and payment.

One limitation found in a business liability policy for nonprofits is abuse and molestation coverage. While many church insurance provides broad coverage enhancements, your quote or policy may include restrictions on age (17 years or younger), known sex offender exclusion, monitoring requirements, and background checks of all members and visitors to gain access to coverage.

No policy for religious organizations should include these unreasonable expectations on churches; however, they exist and must be avoided at all costs.