What Insurance Does My Church Really Need?
Q: What insurance does my church really need?
Pastor John is starting a new church. After meeting with a representative from his insurance company, he’s confused about what types of insurance the church really needs. What insurance does a new church plant or an existing church really need?
A: The new church needs several different types of policies
Insurance can be complicated! Here’s a list of the types of insurance your church needs:
Property Insurance. This insurance protects your church’s property from damage, destruction, loss, or theft. You can insure everything from the pastor’s pews to the steeple.
Liability Insurance. This insurance fills in the gaps and protects your church from unique risks faced by your church. Liability insurance can include coverage for pastoral counseling, directors and officers, and other unique areas of exposure.
Excess Liability Insurance. This is often referred to as an umbrella policy that offers excess liability coverage in addition to the general, vehicle, and employers’ liability coverage.
Commercial Vehicle Insurance. Vehicle use represents one of the most serious liability exposures for your church. Commercial vehicle coverage should include liability, collision, comprehensive, uninsured/underinsured motorist coverage, vehicle medical payments coverage, personal injury protection, and vehicle physical damage coverage.
Worker’s Compensation Insurance. Often state law requires churches to protect employees with workers’ compensation insurance. This insurance provides benefits for employees who are injured in work-related accidents as specified by state law. Benefits include medical, disability, rehabilitation, and death benefits.
It’s important for the church to work with an insurance agent and company that has experience with church and non-profit insurance needs. Two of the largest providers of insurance to churches are Brotherhood Mutual and Church Mutual. However, the church’s denomination may also provide insurance for its churches.
If you enjoyed this blog, you might be interested in my blog, “What Can I Do to Prevent My Church From Being Sued?” To access that blog, Click Here.
To contact Reynolds Law Group for help with any church legal issues, CLICK HERE.