Church Insurance Coverage

What Church Insurance Coverage Does Your Church Need?

Church insurance coverage is the set of policies that protects a congregation’s buildings, people, leaders and ministries. Most churches need six core coverages: general liability, property, abuse and molestation liability, directors and officers (D&O) liability, workers’ compensation, and commercial auto if the church owns or uses vehicles. Many churches also add employment practices liability, crime (employee dishonesty), pastoral counseling and umbrella coverage. This guide explains what each one covers and how to spot gaps in your current policy.

Since 2012, Integrity Now Insurance Brokers has helped more than 500 congregations nationwide put the right church insurance coverage in place. As an independent broker, we are not tied to one carrier. We compare specialty church insurance programs from carriers such as GuideOne, Philadelphia Insurance, Glatfelter Insurance and USLI to build a policy around your church’s size, activities and risks. Carrier availability varies by state.

Kevin Edwards, our owner, is a licensed insurance professional and an active Youth Pastor with 19 years of ministry experience. That background means we understand how churches actually operate, from volunteer programs and youth events to mission trips and facilities management.

Types of Church Insurance Coverage at a Glance

Coverage	What it protects against	Who needs it
General liability	Injury and property damage claims from your premises and activities	Every church
Property	Damage to buildings, contents, stained glass, signs and equipment	Churches that own or lease space
Abuse and molestation	Sexual misconduct claims, which are typically excluded or limited under general liability	Any church serving children, youth or vulnerable adults
Directors and officers (D&O)	Claims over decisions made by the board, elders or trustees	Churches with a governing board
Workers’ compensation	Medical bills and lost wages when an employee is hurt at work	Churches with paid staff (rules vary by state)
Commercial auto	Accidents involving church-owned, hired or borrowed vehicles	Churches with vans, buses or volunteer drivers
Employment practices liability	Wrongful termination, discrimination and harassment claims by staff	Churches with employees
Crime / employee dishonesty	Theft or embezzlement of offerings and church funds	Any church that handles money
Pastoral counseling liability	Claims arising from counseling by clergy or staff	Churches whose pastors counsel members

We place church insurance for congregations of every size and denomination across the United States. Smaller congregations can compare bundled options and typical costs on our small church insurance page.

General Liability Insurance for Churches

General liability insurance is the foundation of every church insurance program. It responds to claims of bodily injury or property damage arising from your premises or operations (a visitor who slips on the steps, a child hurt at vacation Bible school, or damage caused during a church event) when the church is found legally liable.

Most church general liability policies also include:

Personal and advertising injury, such as libel and slander
Medical payments for minor injuries to guests, regardless of fault
Protection for members, employees, officials, staff and volunteers acting on behalf of the church

Two gaps to check on every policy. Claims arising from a minister’s counseling are often handled by separate pastor’s professional liability coverage. Sexual abuse and molestation claims are typically excluded from general liability and must be added separately. Some church programs also cover expenses after a violent incident during a church-sponsored activity. Learn more on our church liability insurance page.

Church Property Insurance and Additional Coverages

Church property insurance covers your buildings, business personal property, signs, fences and property in the open. Standard perils such as fire, lightning, wind and hail are typically included. Flood and earthquake are usually excluded or limited and may need separate coverage. Specialty church programs can also include many of the extensions below. Availability and limits vary by carrier and state, so confirm each one on your quote.

Equipment breakdown, including computers, boilers, and electrical equipment.
Newly acquired or constructed property.
Pastor’s business personal property.
Ordinance or law – building updates to meet with current building codes following a covered loss.
Limited flood coverage – provides building and personal property coverage on a limited basis when loss or damage is a direct result of flood.
Key person replacement coverage – provides for the reimbursement of recruitment expenses to replace a senior or executive pastor who dies in a work-related accident.
Green upgrade coverage – pays for the reasonable additional costs to upgrade to more energy efficient and environmentally friendly building elements and appliances in the event of a covered loss.
Earthquake sprinkler leakage.

Indirect loss, such as the loss of church income and tuition fees resulting from a covered peril, including a violent incident; e.g., a church intruder.
Automated external defibrillators (AED).
Utility services interruption (direct damage and time element) for example, a storm knocks out usage of your utilities and causes damage.
Fire and security alarm upgrade – reasonable additional costs to upgrade your system when replaced due to a covered cause of loss.
Personal Effects and property of others on a worldwide basis; for example, property lost on a mission trip.
Inland Marine – equipment that is being transported
Crime (Internal and External)
Stained glass windows.

Workers' Compensation Insurance for Churches

Workers’ compensation insurance for churches pays medical bills and lost wages when an employee is hurt on the job, and it protects the church from injury lawsuits by its employees. Lenders and denominations often require it, and most states require employers with paid staff to carry it.

Requirements vary by state. Some states exempt religious organizations, clergy or very small employers. Texas lets most private employers opt out. In North Dakota, Ohio, Washington and Wyoming, coverage is bought through a state fund rather than a private insurance company. Check your state’s rules, or ask us, before assuming your church is exempt.

A common mistake is treating regular workers such as worship leaders, custodians or childcare staff as 1099 contractors to avoid workers’ comp. If a worker is later found to be an employee, the church can face penalties and an uninsured injury claim.

Example: California’s ABC Test

Since January 1, 2020, California has used the “ABC test” to decide whether a worker is an employee or an independent contractor. A worker is a contractor only if all three are true:

A – Autonomy: the worker is free from the church’s control and direction in doing the work.
B – Business: the work is outside the usual course of the church’s activities.
C – Custom: the worker is customarily engaged in an independently established trade or business of the same nature.

Part B is where most church workers fail the test, so in California most regular church workers are W-2 employees (California Labor Code § 2775(b)(1); summary of the law). This is general information, not legal advice.

Business Auto Insurance for Churches

If your church owns, leases or is given a van or bus, you need a commercial business auto insurance policy. A personal auto policy generally will not cover a church-owned vehicle. Ask about hired and non-owned auto coverage too: it protects the church when staff or volunteers drive their own or rented vehicles for church business, such as youth trips.

Carriers look closely at who drives. Expect to provide a driver list. Many carriers set a minimum driver age (often 21 or 25) and review motor vehicle records. A written vehicle maintenance program and driver policy reduce accident risk and help with underwriting.

Frequently Asked Questions — Church Insurance Coverage

What does church insurance cover?

A complete church insurance program typically includes general liability, church property, abuse and molestation liability, directors and officers liability, workers’ compensation and commercial auto. Many churches also add employment practices liability, crime (employee dishonesty) and pastoral counseling coverage. These are often bundled into a single commercial package policy built for religious organizations.

What kind of insurance should a church have?

At a minimum, every church should carry general liability and property coverage. Churches that work with children or vulnerable adults should add abuse and molestation coverage, churches with a board should carry D&O, churches with paid staff usually need workers’ compensation, and churches that own or borrow vehicles need commercial auto. An independent broker can review your activities and point out gaps.

How much does church insurance cost?

Premiums depend on property values, location, attendance, payroll, activities such as daycare, schools or counseling, and the limits you choose. As a general estimate, small churches often pay about $1,200 to $3,000 a year for general liability alone, $2,500 to $6,000 for liability plus property, and $3,500 to $10,000 or more for a full program with D&O and workers’ compensation. Larger churches and churches with schools or daycares pay more. Your actual quote depends on your church’s details.

Why is church insurance so expensive?

Church premiums have risen in many areas because of higher rebuilding costs, more frequent severe weather and wildfire losses, and larger abuse-related lawsuits, which have led some carriers to raise rates, tighten underwriting or limit coverage. Older buildings, large stained glass, youth programs and vehicles can also increase cost. Comparing several specialty carriers is one of the best ways to control premiums.

What companies insure churches?

Churches are usually insured by specialty carriers or programs that focus on religious organizations, such as Church Mutual, Brotherhood Mutual, GuideOne, Philadelphia Insurance and Glatfelter. As an independent broker, Integrity Now Insurance Brokers can quote church programs from carriers including GuideOne, Philadelphia Insurance, Glatfelter Insurance and USLI. Carrier availability varies by state.

Is workers’ compensation required for churches?

In most states, churches with paid employees must carry workers’ compensation, but requirements and exemptions vary by state and some states exempt religious organizations or clergy. Misclassifying employees as independent contractors to avoid this requirement can lead to penalties and uninsured injury claims.

Does general liability cover sexual abuse claims?

Usually not. Most church general liability policies exclude or severely limit sexual abuse and molestation claims, so this coverage must be added separately. Any church working with minors or vulnerable adults should make it a priority. It is available through the specialty church insurance programs we access.

What is a commercial package policy for churches?

A commercial package policy bundles several coverages, such as general liability, property, D&O, abuse and molestation and crime, into one policy designed for religious organizations. Workers’ compensation and auto are often written alongside it. Bundling is usually simpler and more cost-effective than buying each coverage separately, and it reduces the chance of gaps between policies.

Why Work With an Independent Church Insurance Broker?

Kevin Edwards, Owner of Integrity Now Insurance Brokers, is not only a licensed church insurance agent but also an active Youth Pastor with 19 years of ministry experience. He understands what is involved in running a church because he lives it.

As an independent broker since 2012, we have designed coverage programs for more than 500 congregations of all sizes and denominations nationwide. We represent multiple specialty church carriers — including GuideOne, Philadelphia Insurance, Glatfelter Insurance, and USLI — so we shop the market to find the best fit for your church rather than being limited to one company’s products.

We will work with you to structure a ministry insurance program that meets your church’s needs. The church insurance coverages we help put in place will be specifically tailored to your church’s size and comfort level.

We serve churches of all denominations and non-denominational congregations across the United States. Call us at (877) 854-7396 or request church insurance quotes to get started.

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