Modern churches are more elaborate than in the past. Some churches are filled with expensive equipment such as projectors, cameras for live streaming and expensive lighting. So, it goes without saying that these days ministries will need church insurance to protect their assets.
If you’re thinking of opening up your own ministry or have one but aren’t insured yet, then read further. We’ve provided five reasons why you should insure your church and considerations when choosing your policy.
Liability and Property Coverage
As a church, you’ll be serving adults, youth, seniors, volunteers and students. However, sometimes serving can lead to risks that you need to protect your church against. Some insurance companies can provide the following:
- Protection for harassment and sexual misconduct
- Coverage for freedom of religion
- Protection for elders or board members
Additionally, assets need to be covered in case of fires, floods, robberies or vandalism. So you’ll need property coverage to insure expensive equipment and the church building.
Coverage for Finances
Most churches have charity organisations, and they deal with money on the premises when people give tithes. You may need an industrial special risk policy that covers you for consequential loss which includes loss of revenue. This type of insurance will cover you for theft of money and employee dishonesty.
Financial insurance ensures that monies accumulated for charities or fundraisers will be protected. If you’re trying to establish your church by helping your community, then make sure you protect your finances from potential losses.
Coverage for Special Events
You’ll need exceptional insurance if your church hosts special events such as:
- Fundraisers
- Festive season celebrations
- Concerts
- Ministry teachings in different locations
These events and gatherings carry many risks!
The insurance policy should cover loss or damage of assets and possible legal action. You may also need insurance for potential loss of finances.
Protection Against Legal Action
General liability insurance will assist you with legal actions against the church. Lawsuits can cost your church money and time so you’ll need the policy to protect you from loss of revenue. Liability insurance has two parts:
- Coverage for someone claiming property damage
- Coverage for someone claiming injury on the premises
If a member of the church slips or falls on the premises, general liability insurance provides coverage for lawsuits. Legal costs can be expensive so churches must have a policy in place to protect themselves financially.
Mission Insurance
Churches will need mission insurance in case of an extreme emergency. This insurance will cover your church for liabilities such as kidnapping or medical situations. If you’re doing missionary work, then you’ll need worldwide liability insurance which will help cover you when you travel abroad.
There are church employees that may need medical coverage when travelling so mission insurance will be an important coverage to consider. If you’re travelling to a high crime area, you’ll need insurance to cover you for ransoms or even extortion.
What to Consider When Choosing Church Insurance
Before you decide to opt for insurance for your place of worship there are a few aspects you need to consider first. Here are some considerations when choosing your church insurer.
What Type of Church Insurance do You Need?
There are many types of church insurance policies to choose from such as:
- Property insurance
- Liability insurance
- Commercial auto insurance
- Contents or personal property insurance
- Event insurance
- Workers’ compensation
- Umbrella insurance
Most churches will need liability and property insurance to protect themselves from legal action or loss or damage to assets. However, if you host festivals or fundraisers regularly, you’ll need event insurance. It will all depend on the type of church you have and the work you do.
Make sure you pick a vendor that can assist with the coverage you need.
What is Included in a Church Insurance Package?
An insurance policy will include the most important coverage that a church needs such as:
- Liability insurance
- Property insurance
- Workers’ compensation
You can choose other policies if you need coverage for missionary work or events. You will need to see which policies will offer the type of packages you need for the ministry you have.
What Assets Are Insured with Church Policies?
Your insurance policy should cover air conditioning, plumbing, family centres and kitchens. Some insurers may cover high-end assets such as musical instruments, artwork, stained glass windows and video equipment. You will need to check with the insurer to see what types of assets they cover.
Do Churches Have Higher Premiums?
Since churches are different from other types of buildings, they may have higher premiums. This is because some church buildings are old and may need special maintenance. However, your premium will depend on the insurer you choose.
Final Thoughts
Although a church is a place of worship it’s not exempt from risk. The property can get damaged by natural disasters, vandalism or accidental fires. You can even experience lawsuits from people who may want to take advantage of your establishment.
So it’s clear: you need proper insurance to protect your church. It’s not simply an asset but it’s a place to help your community. Use this article to help you make the right decision to get your ministry covered.
