Churches are places of worship, but they are also often a space for events like funerals, weddings, services, and community events.

These large gatherings put churches at risk for unique liabilities. Churches also have employees and a board of directors, who all may need insurance coverage of some sort. Places of sanctuary are not immune from lawsuits.

Church insurance is a must. If you are an experienced or inexperience board member, officer or church leader; you may be asking yourself, “what types of insurance a ministry should have for security, maintaining continuity, and financial peace of mind?”

Coverage for Special Events

Dig deep into your current policy to see if it covers special events. If not, it’s important to ask for this coverage. This is especially true if your church holds special events like festivals, holiday celebrations, etc. This is important to determine if the special event is taking place outside of church property. The location of the event is important and might determine if you need a separate policy for special events to provide coverage. Look for exclusions for sports (church softball team?) or inflatables (bounce houses or amusement rides?), or “designated premises” only endorsements (coverage limited to the church property).

Insurance Coverage in Case of Legal Action

In the event members of the church or other individuals sue, general liability insurance is necessary. This type of coverage has two parts. It includes coverage for someone claiming injury and coverage for someone claiming property damage. If a guest – or potential new member – slips and falls in the church, general liability insurance would likely provide coverage. Property damage can also be covered with general liability insurance. This is especially important if the church doesn’t own the building of worship. Remember that even is the church is not legally responsible, churches must be prepared for legal costs to defend themselves.

Church Property Insurance

If your church owns their buildings, plus any personal property inside the church, then you will need property insurance. This covers property like furnishings, landscaping, and buildings. Bibles, hymnals, removable pews – and don’t forget the office and kitchen. Some churches have valuable items in the church. It may also cover historical property like pews, church pianos, and other musical instruments (antique handbells?). If your church has valuable stained glass, you will want to review the building coverage to be sure those are included.

Property insurance keeps you secure in case of other incidents, like a natural disaster, theft, fire, and more. Property insurance is key for rebuilding after an unexpected financial issue. Property insurance premiums are typically calculated using multiple factors. The square footage of the church buildings, the age (construction year), roof ages, system updates (Electrical, Heat, Wiring) – and any additional newer construction that’s been done, will be factored in as well. It’s important to note any renovations, especially for an older church building. Underwriters look at security, lighting, alarms and fire safety.

Property insurance can includes auto insurance coverage. Does your church have buses or vans that need coverage? Golf carts for the maintenance staff? If so, property/auto insurance would provide security for any damages that happen to the vehicles or any people injured.

Types of Liability Coverage

General liability insurance won’t cover all circumstances, additional liability coverage is needed for specific types of incidents. Some types of liability coverage to consider include: Sexual Misconduct, Directors and Officers, Pastoral Counseling, and Overseas Mission Trips, Liquor Liability, and Employment Practices Liability.

Employment Practices Liability is insurance is important for churches, especially if an accusation arises. This can cover legal costs and damages if an employee sues. Plus, if other legal accusations arise, like discrimination, sexual harassment, or wrongful termination, EPL insurance can help cover costs.

Also, when thinking about liability insurance, you want Directors & Officers Liability to include all employees of the church, including the board of directors and trustees. This will cover the church for claims of financial damage due to a decision that was made by the board occurs.

Another type of liability insurance that you may not think of relating to a church is cyber liability insurance. This type of coverage is helpful if a church uses computers and electronic data.  Cyber liability insurance will help with recovery costs related to any cyber attacks, computer viruses, and data breaches, including legal fees and claims that may be incurred in a data breach. If you are keeping private information about membership lists or credit card payments, cyber liability can help cover breach notification expenses.

Coverage for Employees of the Church

Other than insurance to protect against possible legal fees, you may also need insurance for the employees of the church.

Workers’ Compensation Insurance is needed for employees to benefit from any injuries on the job. North Carolina requires Workers Compensation if your church has three employees (including part-time, full time and corporate officers). If your church is not required to carry coverage, the church can still buy coverage to help the church against a claim from an employee who is injured on the job rather than choosing to self-insure. Not sure if this applies to your church? The NC Industrial Commission web page with information is here.

Your Workers Compensation coverage does not cover employees while on any missionaries that are overseas.

Mission Insurance

Mission Insurance can help protect in case of an emergency. This relates to medical coverage, kidnapping, and other liabilities that could occur in a mission trip. If the mission is not domestic, meaning it is outside of the US, you may need a separate policy. You can also get worldwide liability coverage. This could provide insurance abroad. Also, consider that employees traveling will need medical coverage. This is especially true in case of an emergency. As mentioned above, having kidnap, ransom, and extortion insurance is very important.

Church Insurance Is Important to Protect Your Place of Worship

Whether your ministry has one small rental space, or multiple property locations with many employees, church insurance is important to protect your place of worship.

Churches require specialized coverage. Call us to discuss your Church’s needs and review your portfolio at 919-524-2149 or email us at contact@middlecreekins.com .