7 Ways to Protect Your Church: What Kind of Insurance Does My Church Need?

In today’s culture, legal threats to churches seem to be mounting on every side as many localities seek to restrict access to prime real estate through zoning, opponents of religious liberty attempt to dismantle tax-exempt benefits for churches and clergy, and disputes about church property and other issues increasingly wind up in the courts.

According to ChurchLaw&Tax.com, the top five reasons churches wind up in court include:

1. Property Disputes

2. The Sexual Abuse of Minors

3. Personal Injury

4. Insurance Coverage Disputes

5. Zoning Issues

In this changing legal landscape, how can you protect your church from harm and increase your chances of staying out of court? Here are seven ways to protect your church:

1. Leverage the Law in Your Favor

2. Strengthen Your Governing Documents: Is That in our Bylaws?

3. Minimize Your Liability Through Effective Policies: Three Policies Every Church Needs

4. Develop Effective Employment Practices: Hiring, Firing, and Living to Tell About it

5. Maintain Insurance Specific to Your Needs

6. Clarify Property Issues Early

7. Protect Your Children, Students, and Volunteers

To read any of the previous blogs in this series (1-4), click on the hyperlinks above. This blog focuses on protecting your church by making sure your church is properly insured. There are at least five types of insurance your church needs.

1. Real and Personal Property Insurance. This insurance protects your church’s real and personal property from damage, destruction, loss, or theft. Real property consists of your church’s land, buildings, and everything attached to it, while personal property consists of items that are movable—like chairs, tables, televisions, books, etc. The amount of coverage you need is usually calculated based value of the church’s real and personal property.

2. General Liability Insurance. This insurance offers two primary forms of protection: 1) against claims of personal injury and 2) against property damage. This is the insurance that kicks in if a youth is injured going down a waterslide at camp or if a guest slips and falls in the balcony. It is recommended that churches obtain a minimum of $1 million in general liability insurance.

3. 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.

4. 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.

5. Worker’s Compensation Insurance. Most state laws require 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.

6. Additional Policies. Due to the high-risk nature of ministries, it is recommended that churches also obtain specific coverage for business interruptions (particularly if the church operates a preschool or daycare), sexual misconduct, pastoral counseling, employment practices and benefits, and directors and officers liability.

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.

To learn how Reynolds Law Group, PLLC can become a member of your team and help you protect your church and more, check us out at reynoldslawgroup.com or call 757.219.2500 to set up a free strategy session today.