What Kind of Insurance Does a Church Need: Types Of Church Insurance Coverage Every Church Must Have

Church Buildings Insurance For Religious Organizations

Church building insurance covers events like fire or wind that could cause complete or partial damage to the church and is determined by factors such as size, construction, year built, and location. Commercial property insurance covers the physical church structure and its contents, such as pews, pipe organs, stained glass, exterior signs, and other personal property, such as computer equipment, communication systems, and library property.

Church property insurance can cover more than the church building, such as a pastor’s residence or community center. 

Business Personal Property Insurance

Business personal property insurance covers damage to property on the church premises, including items like furniture, equipment, and technology. 

General Liability Insurance For Churches

General liability insurance is the most common form of coverage for churches, and it typically covers any damages or litigation fees that may arise from church operations or activities. This includes slip and fall injuries and any other claims of harm that could occur due to the church’s negligence.

Special liability insurance is available to protect the children and youth participating in overnight events in the church’s ministries. It is recommended that churches carry at least 1 million dollars in general liability coverage to protect them from potential financial hardship.

Church Owned Vehicle Insurance Coverage

Commercial business auto insurance protects church vehicles if they are damaged in an accident or if someone is injured while driving a church-owned car. If members of your church travel in a 15-passenger van or church bus, it is essential to have physical damage coverage and high auto liability limits.

Excess liability coverage may be recommended for churches and private schools that use these larger vehicles.  

Professional liability insurance For Pastors

Pastoral Insurance is professional liability insurance that provides pastors, priests, rabbis, and other religious leaders with financial protection against negligence, misrepresentation, or inaccurate advice. This includes the costs associated with expenses or legal fees required for their defense and resulting judgments against them.

Cyber insurance

Cyber insurance is becoming increasingly important insurance your church needs, as cybercrime can cause severe financial, reputational, and legal damage. Cyber liability insurance protects against the financial losses associated with cyber-attacks, such as unauthorized access to private data, online extortion, and data breaches. 

It also covers any legal costs related to a cyber-attack, including notifying individuals whose data may have been exposed. 

Abuse and Molestation Insurance Protection

Churches need abuse and molestation insurance protection to cover both contact and non-contact abuse, such as sexting, Snapchat, and TikTok. This type of insurance typically consists of two components: one covers the legal fees, and the other covers the payout if the case is lost. 

Directors and Officers Liability Insurance (D&O Insurance)

D&O insurance protects a church’s board of directors and officers from financial loss due to lawsuits arising from their decisions or actions. This insurance coverage will provide financial protection and resources to pay a judgment or settlement and legal and court fees if the church is sued for errors or omissions while governing the organization.

D&O insurance can also help protect the board from claims of mismanagement of funds, failure to perform official duties, or defamation by an officer or board member. Board members are typically church volunteers, which makes this unique coverage vital for churches to provide.

Employment Practice Liability Insurance

Employment Practices Liability Insurance (EPLI) protects churches from claims of wrongful termination, sexual harassment, discrimination, and other types of employee-related liabilities. EPLI coverage helps protect your place of worship from legal fees associated with defending against claims, settlements, and judgments.

Employee Benefits Liability

An employee benefits liability policy is designed to provide financial assistance if an employee is wrongfully denied benefits or is discriminated against due to race, color, religion, sex, age, national origin, or disability. This policy can assist with legal fees, court costs, and fines if an employee brings a lawsuit against the church. 

Workers’ Comp Insurance For Religious Organizations

Many churches do not believe they need workers’ compensation insurance; however, this is the furthest thing from the truth. Workers’ comp insurance for churches can help cover medical expenses, lost wages, and other costs associated with a work-related injury.

Employer liability included in workers’ compensation insurance protects a church from lawsuits for employee injuries. These lawsuits can be filed by the employee or even the spouse or family member.  

Churches need to work with an insurance agent specializing in ministry insurance to ensure volunteer church members or employees injured on the job have the right insurance to protect them and their family members.

Business Income and Extra Expense Insurance

Business income and extra expense insurance can help protect churches and other religious organizations from the financial loss of unexpected events, such as weather damage, fires, or theft. It can also provide additional coverage for relocation expenses if a church is unexpectedly forced to move to a temporary site. 

Religious Expression Insurance

Religious belief insurance is an added coverage for liability claims based on a religious institution’s long-held biblical beliefs. The coverage limit provided is one million dollars in liability protection, and this vital coverage costs around $100 per year.