Insurance for Churches and Religious Organizations
Why is insurance a must for churches and religious organizations?
Your religious organization faces many of the same liabilities as a business. A church member could trip on a broken step and file a lawsuit, or a storm could damage church property. Business insurance can handle unexpected medical bills, legal fees, and repairs, so you can focus on what's important.
Get insured, fast
6 insurance policies every church and religious organization should consider
Business insurance covers costly accidents and lawsuits, and certain policies may be required by law. These church insurance policies protect against the most common risks faced by religious organizations.
General liability insurance
A general liability policy protects against third-party lawsuits related to injuries, damaged property, and other accidents at a church or religious organization.
- Bodily injuries
- Accidental personal property damage
- Slander and other advertising injuries
Business owner's policy
Small churches can often bundle general liability coverage and commercial property insurance together in a business owner's policy, or BOP. It costs less than buying the policies separately.
- Slip-and-fall injuries
- Property damage to a church building
- Business interruption incidents
Professional liability insurance
This policy covers lawsuits related to pastoral counseling and other professional services. It's sometimes called errors and omissions insurance (E&O).
- Errors and oversights
- Missed deadlines
- Breach of contract
Directors and officers insurance
D&O insurance protects your directors and officers from legal costs related to the decisions they make on behalf of your church or religious organization. They may ask for this coverage before they'll join your board.
- Employee lawsuits
- Mismanagement of funds
- Failure to perform official duties
Workers' comp insurance
Most states require religious groups that have employees to carry workers' compensation insurance. Personal health insurance won’t cover work-related injuries, which makes this policy crucial for sole proprietors too.
- Work-related medical expenses
- Disability benefits
- Legal costs from workplace injuries
Employment practices liability insurance
If an employee sues your church for wrongful termination or another violation of their rights, this policy will pay for your legal costs. It's also referred to as EPLI.
- Unfair hiring and firing practices
- Sexual misconduct and harassment
- Discrimination
Church insurance costs
From our customer data, here's a quick look at average premiums for churches and religious organizations:
General liability: $42 per month
Business owner's policy: $99 per month
Workers' compensation: $60 per month
Factors that can influence a nonprofit's insurance costs include:
- Type of religious organization, such as church, interfaith organization, or service group
- Organization size and revenue
- Number of employees and volunteers
- Types of insurance and additional coverages purchased
- Policy limits and deductibles
- Claims history
Hear from business owners like you who purchased insurance coverage.
Why churches and religious organizations choose TechInsurance
Get insured quickly with TechInsurance
Get insurance fast so you can get started working with clients. Fill out our easy online application, choose a policy, and pay online to start coverage today.
Common questions about business insurance for churches and religious organizations
Why should a church have directors and officers insurance?
Directors and officers insurance provides crucial protection for every church's board of directors. Here are a few reasons why your church needs D&O insurance:
- It pays for lawsuits against your board. If a board member makes a poor investment or other decision that causes a financial loss, D&O insurance can help pay for legal costs if they're sued.
- Board members may require it. Some individuals may refuse to join your board of directors if you’re uninsured. They want to know they can make decisions for your church without worrying about out-of-pocket legal expenses.
- It helps attract talent. Providing D&O insurance to your board members and elected officers shows them your church is reliable, and helps attract talented individuals to fill these roles.
Some insurance companies offer a discount when you bundle D&O insurance with other types of management liability insurance, such as employment practices liability insurance.
What other types of coverage can help properly insure a small church or religious organization?
Small places of worship face a wide range of risks depending on their operations and activities. The following policies help complete your church's risk management plan and protect against specific risks such as data breaches, employee theft, and auto accidents:
- Business interruption insurance: If your church is forced to close temporarily due to a fire or other covered property claim, this policy will help cover lost revenue and daily operating expenses until you can reopen.
- Commercial auto insurance: This policy covers the cost of an accident involving a vehicle owned by your church, as well as property coverage and vandalism. If your church staff relies on personal, rented, or leased vehicles, look to hired and non-owned auto insurance (HNOA) instead.
- Cyber insurance: This policy helps your church recover financially after a data breach or cyberattack. It helps pay for data breach notification costs, cyberextortion payments, and similar costs.
- Commercial crime insurance: Crime insurance refers to several types of coverage. You can get a property insurance endorsement to protect your business against theft, or a fidelity bond, which provides reimbursement if an employee steals from a client.
- Commercial umbrella insurance: This policy boosts the protection of your underlying liability insurance coverage, such as general liability, commercial auto, and employer's liability insurance (part of workers' compensation), when they reach their limits on a claim.
Our licensed insurance agents can help you choose policies that match your insurance needs, comply with state laws and other requirements, and save money on coverage.
Nonprofit and social services businesses we insure
Don't see your industry? Don't worry. We cover most businesses.