The Basics of Church Insurance

Unexpected things can happen, even in churches. People get hurt, buildings are damaged by storms, etc. Church insurance helps protect everything that you've worked hard for and covers your risks. Having the right coverage for your church allows you to stop worrying about what might happen and focus on meeting the needs of the community you serve.

A church requires comprehensive and specialized coverage necessary for places of worship. With so many people using their facilities, there are huge liability issues for every church. Companies like Brotherhood Mutual and others who cover non-profits and places of worship generally recommend three main types of coverage for these organizations:

1. Liability.

Liability insurance protects against two kinds of financial risk. First, it pays for damages caused by the organization to other property or people. Second, it defends the organization or church in court if it is sued. It is hard to believe that anyone would sue a church or non-profit organization, but it is more common than you might think. In addition, church and volunteer organizations participate in many products from painting, field trips, aged programs, etc. nearly any activity can result in serious injury can result in lawsuits and liability. Even a simple open-and-shut case can bankrupt a small nonprofit organization.

2. Property.

Property insurance is the second area that churches and nonprofits require full coverage. Whether it’s a synagogue, a chapel or a home residence, a property insurance policy covers all of the stuff that a church or nonprofit organization has. Generally churches have a high value of property such as paintings, stained glass, statues, furniture, etc. A property policy protects these in cases of damages such as fire or vandalism, which are the two most common claims for sanctuaries.

3. Employee Insurance.

Not all churches or nonprofit organizations have paid employees, but for those that do, they may be required to carry workers compensation insurance. Even if it is not required, it is generally a best practice to carry a policy that includes employment practices liability, employee benefits liability, workers' compensation.

There is specialty coverage for places of worship as well which may include misconduct liability, professional liability, and umbrella liability insurance designed specifically for the exposures of religious ministries.

The various sanctuaries and places of worship around the country play a central role in the lives, spirit and expectations of those who attend, and it is important to the congregations feel protected while at church. Many times the insurance policy for churches and other places of worship is paid through church tithes or dues from the members who use the facility. Your agent can walk you through the various coverage options and limits, to create the right insurance protection for your ministry.

By Matt Reynolds - Google+

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