Understanding Workers' Compensation Insurance
Church workers’ compensation insurance is important coverage that protects your employees, as well as your ministry, in the event they get injured or ill while working. The injury or illness does not have to be related to a single incident either. A workers’ compensation policy can assist with the cost of:
- Medical expenses
- Lost wages
- Rehabilitation
- Legal fees
- Partial/Total disability
Why Workers' Compensation Insurance Matters in Ministry
Even in safe environments accidents can still happen… A back injury setting up chairs, a kitchen mishap, or a fall while on a mission project. Any of these can turn into medical and financial hardship. In addition, community outreach can put your church into situations that are not common to other businesses.
As an employer, you must provide medical care to workers at no cost to them including:
- First aid treatment
- Nursing care
- Hospital services
- Medical supplies
- Physician services
- Prescription medications
- Surgical care
- Medical & vocational rehab
Any incident, no matter how seemingly small it may seem, could end up being expensive. If one of your employees does get injured performing their duties, the medical costs and legal fees that arise may be too great for your church to handle. But, having a workers’ compensation policy specific to your church will help provide you with protection to keep your ministry going.
Beacon Insurance Agency specializes in customizing workers’ compensation insurance for churches that provides coverage for medical expenses and lost wages as well as employer liability.
How Workers' Compensation for Churches Work
Workers’ compensation for churches and religious organizations work in the same way it does for other entities. Injured or ill workers receive a certain portion of their wages while they are unable to work and compensation for the cost of their care. This can include rehabilitation efforts required to bring them back to working status.
Employees do not have to be on the premises to receive coverage. Any work-related tasks at their employer’s request, whether on or off-site, will fall under workers’ compensation.
Also, injuries or illness may not have to be a result from a single incident. Repetitive stress injuries or illnesses resulting from continuous exposure to certain chemicals in the work environment may give rise to a workers’ comp claim.
What Workers' Comp Covers
Workers’ comp is designed to help the injured employee as well as the organization:
- Pay medical expenses for work-related injuries.
- Replace lost wages during recovery.
- Support rehabilitation or ongoing care.
- Protect the ministry from costly legal claims.
What It Does Not Cover
There are instances that negate coverage, for example:
- Injured while driving to or from work is not considered work-related.
- If an employee fails a drug or alcohol test after an accident.
- Intentional acts of the employer or other employees.
- Self-inflicted injuries.
Do You Really Need Coverage?
Many churches in Florida often ask us “do we really need a workers’ comp policy?” The short answer is “yes”. This includes small churches, faith-based private schools, and nonprofits alike. Read our article here: Does Your Church Really Need Workers’ Comp Insurance?
Laws on Workers' Compensation Coverage (WCC)
Each state has their own requirements for workers’ compensation coverage. For example… In Florida, WCC is required for all entities that have four or more employees. But, in the state of Alabama, WCC is required for all entities that have five or more employees.
Almost all U.S. states have laws requiring an employer of any size to pay for employee injuries or illnesses due to their job. As a result, your church can be held liable for the medical bills and lost wages of an injured employee, even if you are not required to carry WCC by your state. The good news is there are cost-effective coverage options to protect your church.
Best Way to Find a Policy for Your Church
Understanding and choosing a workers’ compensation policy can be confusing. Especially when community outreach and ministry put your church in a number of situations that are not standard in other types of business. We recommend using an insurance agency who:
- Specializes in church and ministry insurance
- Understands state requirements for religious organizations
- Offers honest, transparent coverage explanations
- Provides ongoing support and risk management guidance
Beacon Insurance Agency works solely with churches, private schools, and nonprofits so we understand the unique challenges that you face. We work with you to find the solutions you need to accomplish your mission.
FAQs About Church Workers' Compensation Insurance
In the event of a workplace injury or illness, many questions could arise that your church may need to answer. Below are a few of the most commonly asked questions and their answers.
How does Workers’ Compensation work?
Workers’ compensation insures employees against wages lost or medical costs related to job-related illness or injuries. Ill or injured workers receive a certain portion of their wages while they are unable to work and receive compensation for the cost of their care.
Who does Workers’ Compensation cover?
Workers’ Compensation covers only employees of the business or organization.
Do churches have to pay workers’ compensation?
Most churches are not exempt from workers’ compensation. However, a church in Florida with less than 4 employees is exempt. A church in Alabama with less than 5 employees is exempt.
Is workers’ compensation different for churches?
No, the law treats churches and religious organizations like other non-construction and non-agricultural businesses. Workers’ Compensation insurance for churches and ministries works in the same way.
How much does a church workers’ compensation policy cost?
The state in which the entity is located sets the rates for workers’ comp insurance premiums. Cost varies from state to state and depends on that state’s law.
How does workers’ comp work with independent contractors?
It’s in your best interest to have a written agreement with an independent contractor regarding who is responsible for their workers’ compensation if they’re injured or get sick on the job.
Do workers’ compensation laws cover volunteer workers and minors?
Generally, policies do not cover volunteers because they are not employees. Minors, however, often receive coverage. If minors work in violation of labor laws, there may be substantial penalties. Most often, WCC benefits double in these situations, and the employer is responsible for paying the additional amount.
Can an employee sue their employer if they are receiving workers’ compensation?
No. workers’ compensation is a no-fault program. This means that injured employees do not legally have to prove negligence on the part of their employer in order to receive benefits, but neither can they sue their employer for their injuries.
How does the Workers’ Compensation claims process work?
Injured or sick employees must report their injuries or illness to their employer and must submit specific forms. If the employee does not report the injury within a certain period of time, they will potentially lose their right to receive benefits.
Employers also must provide all employees with fact sheets or pamphlets regarding their rights and responsibilities in addition to displaying the posters required by state law. Once the employee properly submits the forms, compensation will be determined in accordance with state law.
Have questions about workers’ compensation for churches that are not answered here? Call Beacon Insurance Agency to get answers to your questions today!
A Trusted Church Insurance Agency
We are all serving God in faithfulness. At Beacon, our goal is to meet the needs of churches who make a difference in their community.
Beacon Insurance Agency focuses exclusively on helping churches choose coverage and has been doing so since 2009. We help religious organizations all across Florida and Alabama with their unique insurance needs along with risk management.
You don’t need to be a church insurance expert. Our team of will discuss all determining factors to ensure your employees get coverage and you get a premium you can afford. We can even look over your existing policy at no-charge to you to identify hidden gaps. Call us at (850) 994-7944 today or schedule your free, no-obligation consultation.
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Talk with a knowledgeable insurance agent about a package specific to your organization.
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