Exploring the Different Types of Church Liability Insurance

A church is a sacred place where people gather to worship and teach the word of God. It's also supposed to be a safe space for long-time members and newcomers.

However, as more churches face more false accusations or claims for inappropriate behavior, you must find ways to protect your ministry from legal trouble. And for this reason, you must understand and know which church liability insurance works best. 

This article will discuss 13 different types of church liability insurance.

 1. General Liability 

This church liability insurance works when your church is legally responsible for property damage or bodily injuries. Besides paying for the injured party's damages, it also covers defense costs for litigation. We recommend your ministry carries at least $1 million for general liability costs.

2. Directors' and Officers' Liability

Directors’ and officers’ liability insurance covers the decisions made by your ministry's board, officers, or trustees. While several states protect volunteers of nonprofit organizations, we still recommend acquiring directors' and officers' liability. 

This coverage is essential because you'll be handling expensive defense costs if someone files legal action against your board members.

3. Sexual Misconduct Liability

Besides obtaining coverage for actual incidents, you must also acquire church liability insurance to defend your ministry against allegations. The defense costs can reach hundreds of thousands of dollars, forcing your church into bankruptcy or liquidation, if needed, to pay the plaintiff.

We recommend acquiring a minimum of $250,000 for sexual misconduct liability. You should also reach higher limits if possible.

4. Garage Insurance

Garage liability insurance is a type of coverage targeted toward the automobile industry. This coverage works best if your church offers valet parking or automotive services. You also need this church liability insurance if your ministry accepts donated vehicles and sells or gives them away. The coverage amount depends on your church's activity.

5. Employee Practices Liability 

Churches are supposed to be safe spaces for everyone. Unfortunately, agents see more claims in this church liability insurance coverage because of age or gender discrimination accusations. Employee practices liability protects your ministry from rising claims associated with your employees, such as discrimination or wrongful termination. 

6. Employee Benefits Liability 

Employee benefits liability insurance protects against claims from an employer's error or omission about the benefits an employee should've received, such as retirement plans, group life, and group health plans.

7. Professional Liability or Counseling Acts Liability

Some church members may accuse your ministry's pastors and counselors of physical and/or emotional abuse. Counseling acts liability insurance coverage protects you from legal action against religious counseling.

8. Workers' Compensation

While all states have their versions of employee compensation laws and coverage, workers’ compensation insurance usually covers all injured employees for negligent acts in job-related injuries. 

9. Foreign Liability and Foreign Travel Insurance

You will also need foreign liability and foreign travel insurance if your members travel overseas. However, you must understand that your primary coverage may have limits or exclusions. 

10. Medical Payments 

Medical payments liability insurance provides a goodwill payment to individuals injured on the property, regardless of who's at fault. It's usually limited to only $5,000. 

11. Hired and Non-owned Autos

All churches should have hired and non-owned auto liability insurance coverage because it protects rented automobiles and non-owned cars. If church members or employees use their vehicles, they'll have primary insurance, and it's only available after exhausting the primary coverage. 

12. Business Autos 

Your church must have business autos liability insurance whenever you own a ministry vehicle because it has the most significant exposure for loss. You must understand the limitations of this coverage. We recommend acquiring at least $1 million liability limits on your car policy. 

13. Excess Liability

Lastly, you should get excess liability insurance for your church in case the claims reach the coverage limits. 

Conclusion

As more churches continue to face serious legal trouble, you must determine which church liability insurance plan works best for your ministry. It’s also best to consult your agent if you need to cover other aspects of your church. 

Church Insurance Man offers affordable church liability insurance packages in the Macon, Columbus, Gainesville, and Gwinnett areas to help protect your church. Visit our website now to request a quote!