Church Insurance Information
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The Importance of Church Insurance
Every church wants to be a good steward of the resources, property and other gifts God has entrusted to the organization. And making sure the church’s people and resources are properly protected is simply part of responsible stewardship.
In today’s uncertain world, a comprehensive church insurance policy is critical to protect your organization against the financial consequences of property damage caused by disasters, as well as accidents, injuries, vandalism, theft and other losses. Without adequate coverage, your church could be exposed to potentially devastating costs
Your church can purchase insurance from a variety of commercial (business) insurance companies. However, it’s important to recognize that churches have a variety of protection needs that are different than a typical small business. This is why experts strongly recommend purchasing an insurance policy that is designed specifically for churches. Because we specialize in church insurance, we can provide superior expertise, services, and additional products tailored to meet church needs.
Choose a Comprehensive Policy to Fit Your Needs
A typical, comprehensive church insurance (commercial package policy) combines both general liability and property liability coverage and is designed to serve as the foundation of the organization’s insurance program. A high quality package policy also should provide the flexibility to choose various options to tailor a program to your church’s specific needs.
Church General Liability Coverage
As part of a package policy, general liability covers the church’s legal liability (responsibility) that can result from injuries to people or damage to their property due to a civil wrong. Coverage is usually included for volunteer workers and donated labor, spiritual counseling, worldwide coverage and sexual misconduct. Even though general liability provides an essential level of protection, it’s important to be aware of the types of losses that are covered and the policy limits. So, talk to a Lutheran Trust—Church Asset Management agent for specific details.
Church Property Coverage
A variety of coverage levels are available, but generally, a basic policy provides financial protection against loss or damage to your church’s property (buildings and contents, signs, property in the open, fences) caused by fire, explosion, windstorm, hail, smoke, vandalism ,and other named perils. Your policy will automatically include coverage for standard items, along with many non-standard items, such as the following:
- Equipment breakdown, including computers, boilers, and electrical equipment
- Newly acquired or constructed property (our limits exceed industry standards)
- Pastor's personal property
- Ordinance or law - when building updates are required by ordinance following a covered loss
- Stained glass windows
- Personal effects and property of others on a worldwide basis; for example, property lost on a mission trip
- Fire and security alarm upgrade – reasonable additional costs to upgrade your system when replaced due to a covered cause of loss
- Utility services interruption (direct damage and time element) for example, a storm knocks out usage of your utilities and causes damage
- Automated external defibrillators (AEDs).
- Indirect loss, such as the loss of church income and tuition fees resulting from a covered peril, including a violent incident; e.g., a church intruder
- Earthquake sprinkler leakage.
Your church may also elect to add the following endorsements to your policy at a modest charge for even greater property protection:
- Computer fraud coverage covers the loss of money, securities and other tangible personal property caused by computer fraud. by non-employees.
- Crime coverage provides protection for losses resulting from theft, employee dishonesty, forgery and alteration.
- Green upgrade coverage pays for the reasonable additional costs to upgrade to more energy efficient and environmentally friendly building elements and appliances in the event of a covered loss
- Inland marine covers property that may be transported from one place to another, as well as unique types of property and possessions of artistic merit.
- Key person replacement coverage provides for the reimbursement of recruitment expenses to replace a senior or executive pastor who dies in a work-related accident.
- Limited flood coverage provides building and personal property coverage on a limited basis when loss or damage is a direct result of flood.
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Why Additional Coverages May Be Needed
While a multi-peril package policy can provide excellent levels of protection, many churches have found that additional coverages are needed to further safeguard the organization from devastating costs. Transportation risks, rising workers’ compensation claims and the increasing number of costly lawsuits filed against churches are several reasons to consider additional coverage. A package policy can be enhanced by selecting the following,
A wide variety of optional coverages are also available:
- Non-owned and hired auto liability
- Counselors liability (licensed and fee-based)
- Directors, officers and trustees liability
- Educators legal liability
- Employee benefits liability
- Employment practices liability
- Lost wages coverage
- Medical liability, including church medical, day care and school medical, and interscholastic medical
- Sexual misconduct liability
- Business automobile policy
- Umbrella policy (an extra layer of liability protection)
- Workers’ compensation policy
- MissionGuardsm International Travel Coverage
This product is underwritten by the ACE USA division of the ACE Group of Companies, owned by ACE Limited (NYSE: ACE). ACE USA, through its underwriting companies, is a leading provider of insurance and reinsurance for a diverse group of clients around the world. Please review your policy for exact coverage and terms.
Important: Due to applicable state laws, certain coverages may not be available in your state. Please contact your Lutheran applicable state laws, certain coverages may not be available in your state. Please contact your Lutheran Trust—Church Asset Management agent for coverage availability.
This information is only a general description of the available coverages and is not a contract. In an effort to keep your policy coverages affordable, the actual policy contains certain limitations and exclusions. Please refer to your insurance policy for the pertinent contract language and coverages. Some coverages or discounts are not available in all states.