Church Insurance Terms to Know

Church Insurance Coverage: 3 Terms You Need to Know

Church insurance policies are daunting to understand. From church building insurance coverage to church liability insurance coverage, the terms are confusing to the layman. The good news is, you don’t need to become an expert.

You don’t need to become an expert in insurance.

On the contrary, that’s what your agent is for! However, you’ll want a working knowledge of the crucial terms in your policies. This way, you’ll present to the Board with confidence. Today, we cover important terms in your church insurance coverage you need to know.

Why is understanding church insurance so hard?

Unless you’re in insurance, policies are a real bear to understand at times. However, it’s important to know what your church is purchasing. Further, how that coverage will mitigate risks, exposures and expenses to the church. You don’t want surprises when a crisis strikes.

According to Church Executive Magazine, “Insurance policies use complex language that’s familiar to insurance companies and agents in order to communicate all the details of the coverage as concise as possible.”

Church Liability Insurance

Church liability coverage protects the church from lawsuits and third-party claims in the event the church is sued. With that, adequate liability coverage in your church insurance policy is critical. Slips and falls are a common example of when your church liability coverage kicks in.


A coinsurance clause requires a policyholder to carry property coverage equal to a percentage of the property value in order to receive full payment for a claim. If adequate coverage is not secured the policyholder pays a “coinsurance penalty.” This penalty usually exceeds the coinsurance clause percentage.

Don’t wait until a claim to familiarize yourself with your church insurance policy.

Umbrella Insurance Policy

An umbrella liability insurance policy picks up where the base policy leaves off. If your church, nonprofit or school is sued, all assets are at risk to be used in order to pay the claim. Consequently, this includes operating bank accounts as well as organization vehicles and properties. One lawsuit can bankrupt an organization. Protect assets with an umbrella policy to pay the balance to the claimant once the base policy is exhausted.

Call us today for a policy consultation @ 850-994-7944.

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