Most Churches Are Required to Have a Workers’ Compensation Policy
Many churches ask us “do we really need church workers’ comp insurance?” or “are all churches required to have a workers’ compensation policy? The short answer is yes they do. However, a church with fewer than four employees may be exempt. This exemption exists for all non-construction and non-agricultural entities under Florida law.
Florida Law on Workers’ Compensation
Florida law doesn’t require workers’ comp on employers with less than 4 employees. But, the law does require all entities to pay costs for any work-related injury or illness. This includes all work done by an employee on or off work premises. The employer must pay lost wages, medical bills, and rehabilitation as long as the employee is unable to work.
Florida Law Workers’ Comp Exemption Guideline
You must post clear, written notice of a lack of entitlement to workers’ compensation benefits. Therefore, the post must be in a conspicuous location directed to all employees and other individuals performing services. For more info on guidelines visit: Florida Statute Chapter 440
Why Churches Should Consider Workers’ Comp Coverage
Ministries that serve the community should review the benefits of workers’ comp insurance. Most churches conduct a variety of activities in the church and around the community. Especially when mission trips, church lawn clean-up, youth field trips, and more are all included. With that, the risk of injury on-the-job is actually higher than you may think. A busted knee alone costs thousands of dollars in medical bills and rehab. Churches without workers’ comp coverage must pay those costs themselves.
Medical Expenses
If an employee gets hurt working or suffers a job-related illness, the church will incur a financial burden. Also, the work must get done by someone else who may be less qualified or efficient. Medical bills, lost wages, and rehabilitation costs are expensive and can pile up. Workers’ compensation is less expensive than covering the costs of the injury or illness. It helps provide the financial coverage needed in case something serious happens.
Liability Lawsuit
Medical expenses, loss of wages, and rehab are one thing and can get expensive. However, permanent body impairment and mental anguish is a different matter. Undoubtedly, many of which often become the subject of litigation with lawyers involved. Subsequently, the church is at great risk of more financial responsibility. Without comprehensive coverage, the church may not be able to handle the cost of liability on its own.
Church Workers’ Comp Insurance Benefits
Beacon Insurance Agency has many years working solely with churches and religious organizations. As a result, we have gain a great understanding of their uncommon challenges. Those unique situations faced by the ones who serve others in their community.
If you elect to get church workers’ compensation insurance, consider your options. The custom policies we offer through GuideOne provide coverage for:
- Wage replacement for employees disabled by work-related injuries or illness. By law, the amount of the replaced wages should be adequate, equitable, prompt and clear. This entitlement is for workers during the time of total or partial disability. Wage replacement coverage helps ensure your church is financially prepared. Cash benefits are computed as a percentage of wages.
- Restoring disabled workers through the payment of any needed medical or vocational rehabilitation. This is considered necessary in order to enable the employee to return to work. The employer must provide medical care to workers at no cost to them. Church workers’ comp insurance coverage helps provide the means to pay these costs including:
- First aid treatment
- Hospital services
- Medical supplies
- Medical/vocational rehabilitation
- Nursing care
- Physician services
- Prescription medications
- Surgical care
A Real-Life Scenario
The pastor of a small church was in a car accident on his way to visit a church member in the hospital. As a result, without a workers’ compensation policy the church had to pay the pastor’s lost wages, medical bills, and rehabilitation.
Independent Contractors on Church Workers’ Comp Insurance
Generally speaking, you should have an agreement for contract work done on your church. Put in writing that workers’ compensation is the responsibility of the independent contractor. This helps to ensure the church is not liable if the contractor gets injured or sick on the job.
However, many churches pay ministers as independent contractors rather than an actual employee. But, most state workers’ comp bureaus do not consider clergy to be contract workers. This is because of the unique relationship between the employer and employee. Due to this, it is important that your ministers have full workers’ compensation insurance coverage.
Insurance Experience That Matters
At Beacon, we have over 20 years of experience in specialized insurance for churches. Also, our partnership with GuideOne allows us to offer exclusive and invaluable safety resources. The resources that our religious clients need for their unique challenges. As a result, we can help keep your church or organization safe in a wide variety of situations.
In addition, we can assist you in cases of injured or ill workers on the job. Have a smaller church with less than four employees? Call us, we are fortunate that our carriers will write a small WCC policy when most carriers will not. Our greatest mission at Beacon Insurance Agency is to illuminate your path to peace of mind. We strive to empower churches of any size with the tools they need to serve the world that needs their light.
Conclusion
Don’t leave your church vulnerable to financial consequences. In today’s complex legal landscape, churches must consider risk management. The specific and unique needs of each church can vary tremendously. Because of this, it’s crucial to assess possible liabilities and appropriate safeguards.
Church workers’ comp insurance can be a valuable tool to help protect your church from lawsuits. Therefore, take the time to understand the benefits and requirements of workers’ compensation insurance. By doing so, you can make a sound decision that can safeguard your ministry. Be sure to consult with a knowledgeable insurance agent on coverage for your needs. Remember, a small investment in insurance can provide significant peace of mind.
Call an experienced agent at Beacon to learn more about custom church insurance today! Questions about your church’s workers comp policy in Florida or Alabama? Call us at (850) 994-7944 or send an email using our Contact Us page.
Sources
- The Florida Legislature: Chapter 440 Workers’ Compensation
