Does your church organization have a need for a business auto insurance policy? If your church owns a vehicle, you will need to ensure that you have a commercial business auto insurance policy.
These policies provide broader auto insurance coverage that works alongside with 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 churches workers’ compensation insurance.
Churches have some of the broadest needs when it comes to insurance coverages. Many organizations may only need a basic general liability policy, as they have a very limited risk exposure. As a church, we have countless insurance coverages we need to have in place.
One of the main questions we receive is how much coverage should our church obtain, related to business auto insurance coverage. In general you will want to make sure your church is fully protected in the event of an accident that causes both 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 also max out the medical payment Limit.
Your church could also reduce your liability limits down to $500,000, however the savings are very minimal as compared to the benefit of having the higher limit.
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 important to consider the age of the van. Many churches inheriate these vehicles from other churches. Unknown to the church who just pickup 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 vehicles new or no older than 5 years old. Insurance companies start to frown on 15 passenger vans at the young age of 10 years old.
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 important to list your churches 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 name of the owner. 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 churches name.
The registration is not in the legal name of the church, but rather the DBA or marketing name of the church. This is due to the fact that the person who registered the vehicle, was not aware the DBA was not the actual legal name of the church organization.
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.