If you are in charge of managing a church or any other religious organization, you will want financial protection from many risks. An employee might be accused of abusing a member. Members might also file a claim against you for negligence or violation of good faith. Start a church or religious organization safely by getting adequate coverage. In this article, we will discuss the insurance policies you will want to include in your own customized church and religious organization insurance policy.
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $2,000,000 | $1,000,000/$2,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $2,000,000 | $1,000,000/$2,000,000 |
| Products and completed operations aggregate limit | $2,000,000 | $1,000,000 | $2,000,000 | $1,000,000 | $1,000,000 |
| Advertising injury coverage aggregate limit | $1,000,000 | $1,000,000 | $2,000,000 | $1,000,000 | $1,000,000 |
| Tenant’s legal liability coverage limit | $300,000/$1,000,000 | $300,000 | $100,000 | $100,000 | $1,000,000 |
| Waiver of subrogation included? | Yes | No | Included | Can be included | No |
| Hired/non-owned auto liability coverage included? | Yes | No | No | Can be included | Can be included |
| Equipment breakdown floater included? | No | Yes | Yes | Can be included | Can be included |
| Can you get a certificate of insurance online? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Deductible | $0 | $0 | $0 | $0 | $0 |
A general liability policy can be essential to your religious organization insurance. This policy protects you from various third-party liability claims from incidents involving injury and property. Some examples of when to use this policy include:
A congregation member slips and falls in the comfort room
A member of your religious organization is sued for slandering a member of the general public during a religious service
Your religious organization can customize its insurance policy further through the use of policy add-ons that include:
Participant accident insurance–Covers members of your congregation if they participate in a group-sponsored event and get accidentally injured or experience an accidental death
Tools and equipment insurance–Provides financial protection for business tools and equipment in cases where they get damaged or stolen
This type of church liability insurance will have a $1 million per occurrence and $2 million aggregate limit.
No, religious organizations and other non-profits are not required to purchase business general liability insurance. However, if your religious organization ever plans to form contracts with clients or hire other businesses for services, they may require that you have adequate general liability coverage.
| CoverWallet | NEXT | Thimble (Best) | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Per occurrence limit | $1,000,000 | $1,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $1,000,000 |
| Aggregate limit | $2,000,000 | $2,000,000 | $1,000,000/$2,000,000 | $1,000,000 | $2,000,000 |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| Waiver of subrogation included? | Yes | No | Yes | Can be included | No |
| HIPAA coverage included? | No | No | No | No | No |
| Sexual misconduct coverage included? | No | No | No | No | Can be included |
| License defense coverage included? | No | No | No | No | Can be included |
| Deductible | $500 | $500 | $500 | $50/$10,000 | $500 |
Errors and omissions insurance for religious organizations covers situations where you or your staff members offer bad advice, negligence, or make mistakes that cause a lawsuit to be threatened against your organization. Some coverages include:
A member of your congregation commits misrepresentation against a third party
One of your staff leaders fails to perform an official duty, which causes him to get sued for negligence
Extended reporting period–This gives you more time to file claims beyond your initial errors and omissions policy timeframe
Excess liability–Adds additional coverage beyond the normal coverage limit for an existing eros and omissions insurance policy for your religious organization
The errors and omissions insurance for your religious organization will have a coverage of $1 million per occurrence and $1 million in aggregate. Higher limits are available depending on the insurer.
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| CoverWallet | NEXT (Best) | Thimble | Hiscox | The Hartford | |
|---|---|---|---|---|---|
| Building coverage limit (minimum) | $50,000 | $260,000 | $25,000/$500,000 | $25,000 | $60,000 |
| Contents coverage limit (minimum) | $50,000 | $22,000 | $25,000/$500,000 | $25,000 | $60,000 |
| Outdoor signs | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Accounts receivable | Excluded | Excluded | $5,000/10,000 | Included | Excluded |
| Money and securities | Excluded | $2,500 | $1,000 | Included | Excluded |
| Lock and keys | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Business interruption floater | Excluded | Included | Included | Included | Excluded |
| Equipment breakdown floater | Excluded | Included | Excluded | Excluded | Excluded |
| Inland marine insurance floater | Excluded | Excluded | $10,000 | Excluded | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | $2,500 | Included | Excluded |
Your religious institution insurance will no doubt require a commercial property insurance policy to become comprehensive. This helps you get your religious building repaired when damage is done to it. Examples of this coverage include:
A fire engulfs your building, and you must repair structural damage before you can serve your congregation
A thief breaks into your building and steals some equipment
Flood insurance–In places where floods are common, you may need to purchase an additional add-on to cover flood water damage.
Earthquake insurance–Nowadays, many policies will exclude earthquake damage to business property. You will want to purchase earthquake insurance if you feel that the area of your religious building is at risk of an earthquakeÂ
The coverage limits for this type of church buildings insurance generally will be around $50,000 for the building and $50,000 for the contents. However, actual coverage limits will depend on the value of your business property.Â
