Why does a Church need Insurance

Churches, like any other place that holds large audiences, can be liable for accidents and more. People may think places of worship cannot be held accountable for actions that take place on their grounds, but this is a misconception.

In addition to church services, the grounds are used for many other reasons: weddings, special events, meetings, and more. The church also has several employees on the payroll. This is why churches having insurance is a must.

All churches should have Property insurance. This covers the structure itself along with furnishings, and all other buildings on the property. A number of factors play a role in how much property insurance a church has including square footage, age of the structures, and even new construction, if applicable. Property insurance provides the necessary protections in case of fire, flood, theft, and more.

Most churches have vehicles for travel. Shuttle busses often pick up parishioners on worship days and they are also used to transport in and out of town for important meetings and business. It is imperative that all vehicles have full coverage insurance. This covers both the church members in case of an accident as well as other individuals if the church is found liable.

Workers employed at the church should be covered by worker’s compensation. If a worker is injured on the job, they are entitled to receive compensation for lost wages and medical bills. This insurance is a far cheaper alternative.

A church is a business just like any other. Employees need to have basic affordable healthcare that includes inpatient and outpatient services, prescription drug plans, pregnancy and childbirth, and mental health services.

Mission insurance is also good to have especially if the church travels throughout the U.S. and abroad. This type of liability insurance provides coverage in emergency situations such as kidnappings, and over medical coverages that could occur during missions. Most churches carry this type of insurance.
Liability insurance offers a wide spectrum of coverages. Unfortunately, misconduct, especially sexual misconduct happens in church settings far too often.

There are literally thousands of sexual harassment, assault, and misconduct claims brought against churches every year. Most of them are settled out of court via insurance. Other liabilities can include youth safety, church security, and freedom of religion. All persons associated with the church should be covered under these circumstances. If an employee accuses the church of improprieties, EPL, or Employment Practices Liability is a must-have.

Because of the potential liabilities, churches should protect themselves with many types of insurance. Whether the church is small or large, the chance of legal action is far more likely than with most other businesses.