People who want to avoid being caught have been known to run into a church and yell “Sanctuary!” Because churches have always been places where people feel safe and secure.
But the truth is that our world has risks. And churches aren’t immune. If you know how to properly insure your church with church insurance, you can be sure that something unexpected won’t put an end to your ministry.
It’s important for churches to cover all their bases when they look for insurance. At these places, you can have weddings, funerals, baptisms, and other events. Your religious group will benefit a lot from being ready for almost anything.
What kinds of insurance should a church think about buying?
A lot of churches aren’t sure what kinds of insurance they need for their groups. A church can buy insurance like property insurance, contents or personal property insurance, liability insurance, commercial auto insurance, flood, wind, hail, and earthquake insurance, workers’ compensation, event insurance, and umbrella insurance.
What is usually part of a church’s insurance package?
Usually, property insurance, liability insurance, and workers’ compensation are all part of a church’s insurance package. Usually, commercial auto insurance and event insurance are two different things.
What property, equipment, and machinery does a church’s insurance usually cover?
Insurance will cover sanctuaries, air conditioning and heating, electricity, plumbing, commercial kitchens, family centres, schools, and other similar assets. There are sometimes add-ons for high-end property like stained glass windows, pipe organs, expensive audio or video equipment, alters, railings, and works of art.
Before partnering with an insurance company, what should a church look for in an insurance company?
Churches should look into insurance companies and choose one that works directly with churches and understands their needs. Church insurance is not the same as regular business or commercial insurance. There are some similarities, but each church has its own needs that must be met. You should make sure that the insurance company you choose can meet the unique insurance needs of your church.
Do insurance rates for churches cost more than they do for other types of buildings?
Some of the time. Church buildings are not the same as normal business buildings. For example, churches tend to be older and need more upkeep. People who use church buildings also have strong feelings about them. For many people, a church is a lot more than just a building and some property. When we insure a church, we try to use the replacement cost value instead of the actual cost value. We want to get a church back to its “whole” state as much as we can, especially after something bad happens.
Do churches need to carry more insurance if volunteers do cleaning or maintenance work instead of paid employees?
Many churches try to save money by having volunteers take care of building maintenance. But many churches don’t know that if a volunteer gets hurt, the church can be held responsible. Workers’ compensation does not cover people who work for free. Even though the volunteer might not be able to file a claim against the church’s insurance, the injured person’s family might do so if the medical bills or other costs are high.
Even though one accident might not have a big effect on the insurance premium, multiple claims can make liability premiums go up and even cause the insurance to be cancelled. Because of this, our insurance company likes to know who is doing maintenance at a church. How the church answers will affect how much liability insurance costs.
Can a church get a discount on their insurance if they buy new or updated equipment?
Most of the time, there are no discounts for new roofs, but there may be fines for roofs that are in bad shape. In the same way, a church can save money on premiums by making changes to how it works. For example, boilers are used in a lot of older churches. When churches switch from boilers to forced air systems, they can save a lot of money on their insurance. Keeping your electrical, alarm, and safety equipment up to date can also save you money on your premiums.
When it comes to discounts, you can save money by adding lightning strike preventers, putting in sprinkler systems, having your alarms checked regularly, and using fire prevention equipment. If your church has a school connected to it, holding regular drills for fire, storm, and active shooter situations can also lower your premiums.
How do you handle insurance for a church that owns a school or cars?
If the church owns the school, it can usually be added to liability without a problem. However, schools that rent space from churches need to carry their own insurance. The church’s vans and cars are covered by a separate policy called a commercial auto policy. Many general policies for churches have add-ons that cover cars that aren’t owned by the church or that are rented.
Does a church’s insurance change if they host community events like funerals, fish fries, or weddings?
Most of the time, the church’s general liability policy covers events that are part of the church’s activities. Also, if a church member hosts an event (like a wedding) at the church, the church’s general liability policy will cover the event. If a non-member rents the church, that person should get event insurance.
Is it important for churches to have coverage for when their equipment breaks down?
Most of the time, you don’t need equipment breakdown insurance. Most mechanical parts of a church won’t put people’s lives in danger if they break. But when it comes to parts that are very expensive to fix, I do think the church should have some kind of service agreement.
Why is it important for churches to buy insurance as a whole?
Most churches today have to do a lot with very little money. If a church doesn’t have insurance, one accident can wipe out their finances. I still see churches that don’t think they need insurance.