Understanding how to Protect Your Church With Adequate Liability Coverage

Insurance protects your church when unfortunate circumstances arise. Property insurance takes care of things while liability insurance covers problems that could happen to others. It’s essential to protect your church from lawsuits and claims by having adequate and appropriate levels of coverage. It’s critical for you to have an adequate level of liability coverage by obtaining a church insurance quote.

Types of Liability Coverage to Consider

  • General liability – All churches should have general liability coverage to pay for property damage or bodily injury along with associated defense costs if litigation is necessary. Your church should carry at least $1 million in general liability insurance coverage.
  • Sexual misconduct is something that you don’t want to think about, but the situation can happen and force bankruptcy if allegations and litigation drain your financial resources. Carry at least $250,000 in coverage and more if possible.
  • Officer and director liability helps pay for expenses related to decisions made by trustees, officers, or members of the board that result in legal action.
  • Employment practices liability protects your church from claims that come up due to problems with employees such as wrongful termination or discrimination due to age or gender. It tends to come with a monthly premium that amounts to only a few hours of attorney fees.
  • All churches need to carry additional automobile insurance coverage for use of vehicles that are rented or used by the congregation. Members of the church who use their own vehicles carry individual auto insurance policies, but this coverage acts as a supplement to pay the difference if a claim does surface.
  • Medical payments is an addition to your policy that issues a payment to an individual who suffers injury while on church property. It is usually limited to $5,000, but payments can be made regardless of who is determined to be at fault for the incident.
  • Automobile coverage is a requirement for any church that owns and operates their own vehicles. Be mindful of limitations and restrictions, such as age, that are included with the policy documents. Aim to have $1 million in coverage for vehicle-related claims.

You don’t want to just walk into the first agency you come across to purchase all your insurance coverage. Take the time to find an agent that will analyze your needs and help you select appropriate levels of coverage to prevent a disaster from surfacing due to lack of financial resources.

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