Religious organizations, ministries, and churches all need special business insurance to protect them from risks. Since religious activities differ from businesses in many ways, church insurance policies are catered to the needs of a specific ministry. However, a traditional insurance plan provides the following.
First, a church needs protection from loss and damages that could happen to the building. Typically, they can get coverage for the actual cash value of the property or the replacement cost. Structures that are older may need higher limits to adequately pay for the repair the building. Also, many historic buildings are considered more valuable.
Furthermore, liability insurance is needed to protect a church from damages and injuries caused to others. Many religious organizations falsely assume that their congregation will not sue. However, it is common for lawsuits to arise when someone is injured on the premises.
Professional liability coverage is also needed to protect pastors and other church professionals from any errors or omissions that they might make that could create legal problems.
In addition to these standard coverage options, the organization may also need insurance for the following:
It is important to understand that church insurance is necessary for all churches, both large and small. The right plan will depend on risk factors, size, and needs. Contact an agent today for help selecting the right policy for your organization.