The work that churches do and the assets they own expose them to a variety of potential risks. Church insurance is designed to help churches in Massachusetts protect themselves from many of the risks they face.
Church insurance policies are specialized commercial insurance policies that have been uniquely designed for churches. Many policies offer coverages that are commonly found in other types of insurance policies, so it’s important that churches work with a specialized agent when comparing policies. A specialized agent will know how these specialized coverages can help protect churches and be able to provide sage advice when making coverage selections.
Most churches in Massachusetts should consider purchasing a church policy. The vast majority are exposed to substantial risks, and a minority of churches have substantial resources to help them recover from a major incident. An insurance policy can provide financial assistance for covered incidents so that churches can continue their work if a covered something covered happens.
In addition to churches, some other religious nonprofit organizations may also want this type of insurance. While other organizations like mosques and synagogues may have theological differences with churches, insuring their assets and operations is often a lot like insuring a church. A specialized agent can help other organizations determine whether this or another type of insurance is best for them.
The exact coverages that church policies offer can vary, but many policies make certain coverages widely available as standard or optional protections. Some common coverages that churches might want to look for include:
General Liability Coverage, which might cover common accidents that occur on church property
Employee Practices Liability Coverage, which might cover discrimination claims brought by employees or volunteers
Daycare and Preschool Liability Coverage, which might cover risks associated with running a preschool or daycare
General Property Coverage, which might cover a church building and other property
Ordinance or Law Coverage, which might cover the increased cost of rebuilding a destroyed building to current codes
Inland Marine Coverage, which might cover expensive items while they’re being transported between locations
Computer Fraud Coverage, which might cover incidents of online fraud
In addition to these, churches often also get several more ministry-specific protections. A few to consider are:
Religious Freedom Coverage, which normally protects against religiously focused discrimination lawsuits
Ministers and Pastors Liability Coverage, which normally covers clergy and sanctioned counselors who provide spiritual guidance
Church-Sponsored Activities Liability Coverage, which normally covers a range of incidents that might occur during official events
Church policies vary in price as many factors influence how much premiums are. Location, building size, number of attendees and number of employees are just a few of the items that could impact how much a church pays for insurance. Coverages selected, limits chosen and previous claims history, of course, also all play a role.
Regardless of how much a policy costs, however, having coverage is almost always the prudent decision. Premiums are generally much less than the potential price of facing a major claim without any protection in place. A single large disaster or liability lawsuit could leave a church financially devastated and, possibly, even force it to close.
For help finding a church policy that suits your church’s situation, contact the specialized and independent agents at The Feingold Companies. Our insurance agents are well-versed in church insurance policies, and they have the expertise necessary to help your church find a policy with robust protections.