Liability coverage extends to protect your church against the costs of litigation. But, since all churches are unique, so are their protection needs. Understanding church liability insurance is important in knowing if you need it and getting the coverage specific to your church.
Church Liability Coverage Insight
To better grasp the meaning of liability coverage, just exchange the word “liability” with “lawsuit”. It covers the church for the costs of:
- Negligence lawsuits
- Accidents that happen
- Misconduct
For example, a visitor at your church trips and falls or a volunteer damages someone else’s property while serving. These can lead to a large financial loss to your church. When instances like this happen, your church may be liable for the person’s injury or property damage. That’s why church liability coverage is important because it helps to cover the costs of claims.
Who It Covers
A church liability insurance policy is for religious organizations like churches, private schools, and nonprofits. The most common church policy is for general liability insurance. But there are also specialized types of liability insurance including coverage for:
- Directors and officers at your church (church D&O insurance)
- Church employees (church workers’ compensation insurance)
- Accidents at church (accident insurance)
- Church owned vehicles (church automobile insurance)
- and other types of church coverages (church insurance)
What It Covers
Specific policies can vary depending on the insured. But, here are some of the common types of claims that church liability insurance can help to cover:
- Bodily Injury: Costs associated with someone, other than your employees or volunteers, who gets injured on your church property or at a church-sponsored event.
- Property Damage: Costs to repair someone else’s property or replace that property if it is damaged by your church or during church activities.
- Personal and Advertising Harm: Claims related to libel, slander, copyright infringement in advertising, or wrongful evictions.
- Medical Payments: Costs for smaller medical expenses if someone has an injury on your property no matter who is at fault. This can sometimes help avoid more significant liability claims.
When It’s Needed
There are sometimes accidents that you simply can not avoid. When these happen, church liability coverage comes into play for:
- Slips, trips and falls
- Physical injuries at your church
- Property damage to someone else’s property
For example, you damage property owned by someone else and are responsible. Consequently, you may have to pay for damages yourself.
Importance of Liability Coverage
There’s a lot of duty in leading a church. It includes guiding faith and overseeing the well-being of your congregation. Here’s why liability coverage for your church is important:
- Protecting Assets: Your church has property like its building and equipment. Liability claims could put these assets at risk but insurance helps protect them.
- Financial Security: Lawsuits are extremely expensive these days. Liability insurance can help with legal defense, settlement, and judgments that come from them.
- Legal Obligation: Lenders may demand you have liability coverage to protect their interest. Or, as part of an agreement with using a certain property or facility.
- Support Your Community: If an incident does happen by chance, you can take care of it without putting your service to your community in the long run at risk.
- Your Peace of Mind: With insurance coverage you can work your mission with more confidence without the worry of possible claims and the backlash as a result of them.
Liability Claims Are Expensive
Without a doubt, a claimant must prove the business or property owner is legally responsible. But, in the meantime, the defendant’s legal bills are adding up.
The average cost to defend a lawsuit varies widely because every case is unique. Some reports show as low as $12,000 if it’s less complex and settles quickly. But more involved cases can have discovery, expert witnesses, as well as trial. Cases like this can begin at $20,000 and go up toward $55,000 and some cost even more. Also, an injury judgement averages $50,000 or more and paying for damages.
Cost Factors of Church Liability Coverage
Understanding the factors that effect your premium can help you decide on coverage. Here are some that insurance providers consider:
- Size of Congregation: Generally, larger congregations have more people which increases the risk of claims.
- Types of Activities: The more differing and higher-risk activities the greater the chances for liability.
- Property Size and Features: The size and features of your property, playgrounds, older buildings, etc.
- Claim History: A history of church liability claims may mean a higher premium to get coverage.
- Deductible: The amount you must pay first before your insurance coverage starts to kick in.
- Coverage Limits: The max your policy will pay for a claim. Higher limits means higher premiums.
- Church Location: The geographic location of your church, some areas may be more prone to certain claims.
Key Terms in General Liability Insurance
To truly understand your coverage, it helps to be familiar with some common insurance terms:
| Term | Definition |
|---|---|
| Policy Limit | Maximum your insurer will pay for a claim they cover in your policy. |
| Deductible | Amount you pay before your insurance coverage will start to pay. |
| Premium | Payments you make to your insurer for coverage on your policy. |
| Exclusion | Specific instances or types of claims that your policy does not cover. |
| Endorsement (Rider) | An amendment to your policy that adds, changes, or deletes coverage. |
| Indemnification | Act of protecting the church or someone financially against loss or harm. |
| Negligence | Failure to take the care a reasonable person would in the same situation. |
Your Mission Matters
Part of your mission is to protect your church and its members. You want the doors of your ministry to remain open to continue your work in the community. At Beacon, we can help you select general liability coverage for your church. Insurance protection that suits your specific needs based on what you do. Call the experienced insurance agents at Beacon Insurance Agency at (850) 994-7944 or send us an email using our Contact Us page to learn more about the insurance coverage we can provide you today.
Best Way to Get Your Church Liability Coverage
Here are some things to consider for coverage on your church:
- Gauge Church Needs: Look at your church’s property, it’s activities, and the possibility of risks.
- Get Good Advice: Talk with an insurance agency who specializes in church insurance. They can help you.
- Review the Policy: Once you receive it, take time to read the policy. Ask your agent to explain things.
- Regular Review & Update: Over time your needs may change. Update coverage so it still protects you.
Insurance coverage for your church can seem complex. But partnering with an insurance agency who understands the unique needs of your church can make a huge difference.
An Experienced Church Insurance Agency
At Beacon, we specialize in helping churches all across Florida and Alabama with their insurance needs. It has been our sole mission to do so since 2009. We take the guess work out of insurance so you can focus on your mission of serving your congregation and your community. Also, our partnership with GuideOne helps us provide invaluable risk management resources. Resources that help you navigate the unpredictable risks that you face in this world.
