Business Auto Insurance Insurance for Churches


Business Auto Insurance Insurance for Churches

Does your church organization need a commercial auto insurance policy?  If your church owns a passenger vehicle, 15-passenger van, or bus, you must ensure that you have a commercial auto insurance policy for churches. 

These policies provide broader auto insurance coverage alongside your commercial general liability insurance policy. 

In addition, church insurance companies will want to know if the drivers of these vehicles are covered by the church’s workers’ compensation insurance.

Churches have some of the broadest needs when it comes to insurance coverage.  Many organizations may only need a basic general liability policy, as they have minimal risk exposure.  As a church, we have countless insurance coverages we need to have in place.    

Commercial Auto Insurance Coverage for Chuches

One of the main questions we receive is how much coverage our church should obtain related to business auto insurance coverage.  In general, you will want to ensure your church is fully protected in an accident that causes property and bodily injury.

As a general rule, we recommend that churches carry the maximum available insurance limits.  This is typically $1,000,000 in liability insurance coverage and max out the medical payment Limit.

Your church could also reduce your liability limits to $500,000. However, the savings are very minimal compared to the benefit of having a higher limit. 

Will Church Insurance Companies insure our Bus or 15 Passenger Van

Depending on the size of your church, you may own a number of vehicles.  It is very common for a church to own a 15 passenger van or even a church bus.

When looking at business auto insurance coverage for a 15-passenger van, it is vital to consider the age of the van.  Many churches inherit these vehicles from other churches.  Unknown to the church who just pick up their new vehicle, the reason it was given to them was due to its age.  

This is because when a 15 passenger van reaches 20 years old or older, they become very difficult to insure.  Many church insurance companies will not insure these vans unless they were already insured on the church insurance policy.  

For 15-passenger vans, we typically recommend purchasing these new or no older than five years old. Insurance companies start to frown on 15-passenger vans at the young age of 10 years old.

A church bus is a bit easier to obtain a business auto insurance policy.  This is because church insurance companies will accept these older buses; however, you will need to prove they are mechanically okay. 
Underwriting rules are constantly changing, so what is acceptable today may not be acceptable tomorrow.  Also, check with your church insurance agent before obtaining a church bus or 15-passenger van.
For both the church van and the bus, you will want to make sure your organization has a vehicle maintenance program in place that is also followed.  

Common Mistake Churches Make Related to Commercial Auto Insurance

When it comes to business auto insurance for churches, we have found there are some common mistakes churches make.

In order to obtain a business auto insurance policy, it is essential to list your church’s legal name on the registration. We have found many churches list the name of the Pastor on the registration, only to find out that later on down the road the DMV will not recognize that vehicle is insured.

This is because the vehicle is in the name of John Doe, but the insurance is in the name of ABC Church. The DMV is not able to prove that vehicle is insured as the names do not match.

Believe it or not, this is the #1 mistake we find with churches related to business auto insurance.

Once this is discovered, we have two choices. Option 1 – Purchase an Individual Auto Insurance policy under the owner’s name. Option 2 – Sell or give the vehicle to the church and have it registered in the legal name of the church.

A second common mistake we find with churches related to commercial auto insurance is still related to the church’s name.

The registration is not in the legal name of the church but rather the DBA or marketing name of the church. This is because the person who registered the vehicle was not aware the DBA was not the actual legal name of the church organization.

We want to be your Church Insurance Insurance Agent

Our church insurance agent’s are ready and waiting, to help your church obtain the correct business auto insurance policy and general liability insurance package policy your church insurance needs.  We strive to make the insurance process as quick and smooth as possible. 

To get started, feel free to give us a call and/or fill out the contact form with any questions or queries you might have. Our church insurance experts will assist you throughout the entire process, providing unique insurance and risk management solutions for your Church. 

Don’t wait any longer; take the first step toward having adequate church insurance protection today at an affordable price! Whether it’s for church general liability insurance or church property insurance, we’re just a phone call away. So feel free to reach out to us at any time for any queries or questions regarding our services.

States we Services: ArizonaCalifornia, ColoradoNevadaOhio, TexasWashington  

Accessibility Toolbar

Scroll to Top