Umbrella Liability Insurance: Extra Protection for Your Ministry
Why Churches Need More Than Standard Liability
For churches, liability insurance is a foundational element of risk management. General liability policies cover many common claims, such as bodily injury or property damage, but they come with limits. If a claim exceeds those limits, the remaining costs fall directly on the church, potentially straining its finances and disrupting its mission.
At Church Insurance Man, we understand the complexities of ministry operations and the range of risks churches face. While a standard general liability policy might seem sufficient at first glance, unexpected incidents, particularly those involving legal action or major injury, can lead to costly settlements that far exceed standard coverage. That’s where umbrella liability insurance comes in. It provides extra protection for churches, allowing them to serve their communities without fear of financial setbacks from large claims.
Our team specializes in helping churches identify areas where their current policies may fall short, ensuring they’re equipped with coverage that meets both their needs and their goals.
What Umbrella Liability Insurance Covers
Extends General Liability Coverage
An umbrella liability policy acts as an extra layer of financial protection by kicking in when the limits of your general liability policy are exhausted. If your church faces a legal claim that exceeds the coverage amount on your existing policy, umbrella insurance can cover the difference up to the umbrella policy’s limit.
Protects Church Leadership
Church leadership, including board members, pastors, and administrators, can be vulnerable to lawsuits related to decisions they make on behalf of the church. While directors and officers (D&O) liability insurance provides primary protection, those policies also have limits.
Umbrella liability insurance provides an extra layer of protection in these cases, ensuring that leadership is covered if a claim exceeds the limits of the D&O policy. This coverage gives church leaders the confidence to make informed decisions without fear of personal liability or unintentional financial loss for the church.
Fills Gaps in Auto and EPLI Coverage
Churches that operate vehicles or rely on volunteers for transportation-related tasks already carry commercial auto insurance. Similarly, churches often purchase Employment Practices Liability Insurance (EPLI) to cover claims related to discrimination, harassment, or wrongful termination.
However, serious auto accidents or employment-related lawsuits can easily result in claims that surpass the limits of these base policies. Umbrella insurance can fill these gaps by providing coverage once the limits on the original auto or EPLI policies have been reached. This added protection helps ensure churches are not left financially exposed when dealing with large or complex claims.
Scenarios Where Umbrella Insurance Provides Relief
Large or unexpected claims can arise even when churches do everything right. Umbrella insurance can provide critical financial relief in several real-life situations, including:
Injury During a Large Event
Churches often host large gatherings such as festivals, concerts, or fundraisers. These events increase the likelihood of accidents, such as slips and falls, equipment failures, or crowd-related injuries. If a serious injury leads to a lawsuit and the judgment surpasses your general liability limits, umbrella coverage steps in to pay the excess.
Transportation Accident Involving a Church Vehicle
A serious accident involving a church-owned van or bus can lead to injury claims, vehicle damage, and legal fees that exceed your commercial auto policy limits. Umbrella insurance provides the financial buffer needed to cover those additional costs.
Employment-Related Lawsuit
Claims of wrongful termination or discrimination can lead to prolonged legal battles and costly settlements. Even with EPLI in place, the financial burden can be significant. Umbrella insurance can provide coverage when those policy limits are exhausted.
Choosing the Right Umbrella Coverage
Policy Limits and Premiums
Selecting the appropriate umbrella policy starts with evaluating your church’s level of risk. There are varying umbrella coverage limits, but the ideal amount depends on your ministry’s size, property value, number of employees and volunteers, and the range of your programs.
Premiums for umbrella policies are generally affordable, especially considering the added protection they offer. At Church Insurance Man, we work with churches of all sizes to help them choose the appropriate policy limit and identify any areas where additional coverage may be needed.
Risk Assessment With Church Insurance Man
Every church is different, and so are its insurance needs. That’s why we take a personalized approach to risk assessment. When churches partner with Church Insurance Man, they gain access to industry expertise that goes beyond basic policy selection.
Our team conducts thorough reviews of current coverage, property use, staff responsibilities, and ministry activities to pinpoint potential liability issues. From there, we develop customized umbrella policy recommendations designed to align with your specific needs and budget.
We take pride in delivering the kind of customer service that reflects our understanding of church operations and our commitment to helping ministries thrive, even in the face of unexpected challenges.
Secure Broader Protection for Your Church
Churches are called to serve their communities with compassion, leadership, and faith. That calling, however, comes with real-world responsibilities, including the need to protect the church’s people, property, and finances. Standard liability insurance is a good starting point, but in today’s litigious environment, it often isn’t enough.
Umbrella liability insurance offers vital protection by extending the coverage limits of your existing policies and filling gaps in areas like auto, D&O, and EPLI. Whether your church is growing, planning new outreach events, or simply looking to reduce financial risk, an umbrella policy can provide the peace of mind you need.
At Church Insurance Man, we are committed to helping churches strengthen their coverage and protect what matters most. Contact us today for a comprehensive coverage review and to learn how umbrella liability insurance can support your church’s ministry, both now and in the future.
