Church insurance is a blanket term for insurance for a nonprofit or religious organization. While some church insurance companies offer a policy package with multiple types of coverage, there is no one church insurance policy. Instead, it is a combination of policies that protect churches from the financial loss experienced after an event, potentially impacting either church property or liability.
The most common types of insurance for churches include general liability, commercial property, and workers’ compensation. General liability for a church can range from $700 to more than $3,000 annually.
Religious institutions are complex organizations. Larger ones can have multimillion-dollar budgets, property spread throughout a city or even multiple zip codes, and hundreds of volunteers running multiple programs (e.g., counseling, food pantries, day camps, and special events).
- GuideOne: Best overall for church insurance
- Tivly: Best for finding custom church insurance
- Brotherhood Mutual: Best for mission trips
- Church Mutual: Best for religious camps
- Great American Insurance Group: Best for larger, active churches
The Best Church Insurance Providers
GuideOne: Best Overall for Church Insurance
Pros
- Available in 50 states
- Zero complaints filed with state commissioners
- 24/7 claims call center and in-house CAT team
Cons
- Quotes are through insurer or an agent—no online quotes
- Only building limit described is for new construction
- No information on online account capabilities
Standout Features
- Multiple types of coverage are available for churches of every size and stage of development, including a builder’s risk policy with up to $2 million for a new building under construction.
- It offers key person insurance to cover the expenses related to finding a new senior, executive, or similar-level position for your organization.
- Property insurance has multiple endorsements, including a limited form of flood insurance coverage.
- SafeChurch® is a free resource library with training videos, sample policy forms, and more for its policyholders.
Financial Stability: GuideOne is financially stable and has an A- (Excellent) rating from AM Best.
Tivly: Best for Finding Custom Church Insurance
Pros
- Licensed in all 50 states
- Service that it provides is free
- Spanish-speaking representatives
Cons
- You cannot get a quote entirely online
- As a marketplace, Tivly doesn’t handle claims
- Account maintenance and services depend on the provider
Standout Features
- Tivly is the largest dedicated commercial marketplace for small businesses. Nonprofits, religious organizations, and churches can all use its service to find coverage.
- It works with a network of over 200 different carriers and agents to help you find coverage. A Tivly representative will work with you to discern your insurance needs, then find a match and transfer you to that carrier.
- Very quick response times to initial quote requests, with the majority of all inbound calls being answered in under 15 seconds and internet quote requests being responded to within minutes.
Financial Stability: Tivly works with multiple top-rated carriers. Some of the insurance companies it partners with are Nationwide and Liberty Mutual. Both have a rating of A (Excellent) from AM Best.
Brotherhood Mutual: Best for Mission Trips
Pros
- Is an intentionally religious business with a weekly chapel for employees
- Offers employee health benefits
- Religious freedom endorsement to help with legal fees
Cons
- AM Best rating was recently downgraded
- Availability depends on the type of the claim
- No online quotes available
Standout Features
- It is the top choice for churches that regularly take mission trips or need one-time coverage. This is due to its individual and group coverage options, quick response time to emergencies, and its own financial commitment to supporting missions.
- Property and liability insurance for an organization that does domestic or international mission work; this includes coverage for permanent foreign mission operations like a school or community center.
- Mission trip coverage flexibility with options for up to 30 days, 45 days, and 180 days of coverage.
- Kidnap and ransom coverage are available for overseas workers.
Financial Stability: Brotherhood Mutual is more than 100 years old. Its financial rating was recently downgraded from A- (Excellent) to B++ (Good).
Church Mutual: Best for Church Camps & Outdoor Ministries
Pros
- Offered in all 50 states and Washington, D.C.
- Over 125 years of specialized insurance
- 24/7 nurse triage line for workers’ comp
Cons
- No online quotes
- Complaints are high—but not higher than the national average
- Details on some coverage are lacking
Standout Features
- Church Mutual is an established carrier that has been focused on insuring churches for over a century. It offers specialized insurance designed for churches, nonprofit organizations, private schools, and camps.
- Camp insurance is divided into three categories, with coverage for each category. The categories are traditional camps (e.g., summer camp, day camp, conferences), sports camps, and outdoor recreational events (e.g., church camping trips).
- If you run a camp/conference center with swimmers, they offer allergy bands and swimming bands at no cost, so you can easily keep track of different participants.
Financial Stability: Church Mutual has been insuring religious organizations since 1897. It is financially stable, with an A (Excellent) rating from AM Best.
Great American Insurance Group: Best for Larger, Active Churches
Pros
- Available in all 50 states and Washington, D.C.
- Works with independent agents
- 24/7 claims services
Cons
- Outside of claims, customer service is weekday only
- No online quotes
Standout Features
- Great American has a policy package for religious organizations that includes all of the major coverages a larger church could need, including property, general liability, professional liability, and hired and nonowned auto.
- Abuse and molestation coverage is included in the religious institution policy.
- You do not need to purchase special event insurance—special events are covered under the general liability policy.
- Its property policy includes provisions for more historic items, such as stained glass windows, murals, mosaics, and even church bells.
Financial Stability: Great American has a solid financial foundation with a rating of A+ (Superior) by AM Best.
Who Needs Church Insurance?
Church insurance is not just for a traditional church. The term applies to all religious organizations: mosques, temples, synagogues, meditation centers, and churches. That is because any religious organization needs insurance to protect its assets from liability claims and damage claims for the organization’s property.
Thinking broadly about church insurance, some less common organizations that may want insurance are as follows:
- Church plants: Not having a building doesn’t mean you don’t need insurance. If you are meeting in a school, movie theater, or another church, general liability is essential.
- Meditation centers: Those offering yoga, tai chi, or other group meditative practices should consider professional liability.
- Home churches: Regular home meetings in your church may not be covered under your homeowner’s insurance, especially if donations are taken or professional services, like counseling, are offered.
- Community Center: An outreach center for a community with meals, food, clothing and classes, whether organized as a nonprofit or run by a church, will need church insurance.
Rising Church Insurance Costs
Unfortunately, as people are finding in the for-profit sector, church insurance premiums are rising, and finding insurance can be a challenge. A number of churches are reporting being dropped by their insurance providers.
The nonrenewals of churches come from the pressure insurance companies face from natural disasters, increased costs since COVID-19, and reinsurance companies raising their rates. Other churches are encountering sticker shock at the time of renewal, with premium amounts increasing by as much as three times the previous year’s amount.
Churches pose a unique risk for insurance companies—they are like a business, but they are not. The members function like customers but are sometimes paid employees. Other times, members are volunteer leaders. Then, there are visitors, volunteers teaching children, student leaders, and special events on-site or out in the community.
If the church has mission trips, then there are formal operations that can take place out of state or even abroad. And, of course, no regular revenue stream; instead, funding comes through donations, which fluctuate weekly. That’s just a glimpse of operations. Most churches have some form of audiovisual technology—and the larger the sanctuary, the more expensive the equipment. If they rent a space, all of this equipment needs to be set up, packed away, and stored every week.
All of this and more are taken into account when a provider is determining the premium for a church. Here are some additional factors taken into consideration by providers:
- Claims history: Have you filed a claim in the past three to five years?
- Services provided: Does your church offer counseling services or operate a food pantry?
- Property value: A 200-year-old stone church with stained glass windows will cost more to insure than a new building.
- Limits: While it may not impact the premium much, raising or lowering limits usually results in some change to the premium, as does the deductible amount.
Most Common Types of Church Insurance & Coverages
Type of Insurance | Coverage |
|---|---|
General Liability | Third-party claims of bodily injury, property damage, and personal injury from libel or slander |
Commercial Property | Business-owned property |
Workers’ Compensation | Medical bills and lost wages for work-related accidents and illnesses of an employee |
Professional Liability | Allegations of professional negligence |
Directors & Officers (D&O) | Board members’ legal defense when they are sued for actions they take for your organization |
Special Event | Liability coverage for special events |
Commercial Auto | Damage to the vehicles, damage to the property, and injuries from a loss |
As its name implies, general liability provides a wide range of coverage. It addresses three areas of risk for a church: property damage, bodily injury, and personal injury in the form of libel, slander, and reputation harm. Two common general liability claims for a church are as follows:
- Someone trips and falls and is injured in the sanctuary.
- Your church causes property damage to a rented space.
Most church events succeed because of volunteers—but volunteers create a gray area for liability policies: are they covered or not? Most policies do include coverage for them, treating them a bit like an employee. However, check with your agent to ensure you do not need to add them as additional insureds. If you have lock-ins with children or teens, see to it that your agent is aware so that the proper coverage is in place.
For religious organizations, it is crucial to make sure your liability policy includes abuse and molestation coverage. This is often found in policies for religious institutions, but if it’s excluded, it will be available as an endorsement or standalone policy.
This is first-party coverage for a building, its contents, and equipment. Property covers named perils, so if your organization is affected by one, such as fire or theft, you can file a claim with your property insurance company to either repair or replace the damaged items.
Commercial property makes the most sense for a church that owns a building. But if it rents a space or sets up weekly in a public venue like a school, then inland marine insurance—another type of property—is a better choice.
Organized religion in America predates the American Revolution. Many church buildings are hundreds of years old, and one informal study in 2022 found that the average age of a church building is over 90 years old. Older buildings present insurance risks—outdated wiring and plumbing, older roofs, and toxic construction materials, like asbestos, can all translate into a higher premium.
Did You Know?
Most insurance providers will offer a combination of liability and property in a policy known as a BOP. The advantage of bundling these two policies is you have one policy for a host of losses, and sometimes, the combination results in a premium reduction.
While workers’ compensation insurance is not federally regulated, nearly every state requires this policy for organizations with at least one employee. If an employee becomes injured or ill because of their job, workers’ comp covers the medical bills and some form of wage replacement until they can return to work.
Some claims you may encounter are as follows:
- The pastor breaks a finger using a hammer
- The worship leader falls off a ladder trying to fix a ceiling-mounted speaker
- The children’s ministry leader hurts their back moving storage units
Many nonprofits try to save money by having employees and members do “the work themselves” instead of hiring outside help. If your church regularly uses volunteers for activities where they could be injured, such as a church workday, check with your agent to see if they qualify for workers’ comp or if there is a blanket endorsement for volunteers available.
Another avenue of coverage could be the no-fault medical payments portion of general liability insurance. But keep in mind that even if that coverage applies, the limits are usually $5,000 to $10,000.
Often referred to as E&O, professional liability is a type of policy for religious leaders who provide counseling services. Pastors have an elevated level of responsibility in that they can also function as counselors and, depending on the state, are considered mandated reporters. Some examples of a claim can be as follows:
- Failure to report suspicious, criminal, or suicidal behavior
- A couple claims poor counseling led to their divorce and financial hardship
Professional liability helps in these situations by paying defense fees, court costs, and settlements within the limits of the policy.
Commonly called D&O coverage, this is more common in businesses to protect board members who are not typical employees. Most churches are governed by some sort of board—and while many states offer some immunity for volunteer board members, there may still be significant defense costs involved and no immunity if the action is considered egregious or gross negligence. Because of that risk, you should consider this coverage.
D&O claims often make the news, such as the following:
- The church has a capital campaign for a new building, but after raising the money, it decides to do something else entirely with the funds.
- The offering is down because a member of the board is stealing some of it.
- The board is aware of accusations of misconduct against the pastor, but instead of investigating it, they cover it up.
D&O coverage—like professional liability—handles court costs, related expenses, and settlements.
Special event insurance is a type of liability policy that provides coverage for a limited period. It can also reimburse any nonrefundable deposits or loss of money that may result from event cancellations. These events often draw large crowds and represent a significant investment by the organization.
For example, when I was a pastor, our church hosted a regular food truck festival in conjunction with a local school. This was a large event that would draw large crowds. One year, it looked like the weather would force a cancellation, and without special event insurance, all the funds invested and the anticipated income would have been lost.
If your church owns a vehicle, then it will need to be insured—and a personal auto policy won’t cut it since the vehicle is owned by an organization. Commercial auto insurance is one policy with multiple coverages. Liability is third-party coverage for damage and injuries to other parties when your vehicle is at fault, whereas first-party coverage, such as collision and comprehensive, repairs the damage to your vehicle regardless of who is responsible.
If you have volunteers regularly transporting members around—perhaps your church has a ministry that drives shut-ins to church on Sunday—make sure you have a copy of their insurance on file. Since this would not be a strictly commercial use of the vehicle, their personal auto insurance should cover the loss.
But that’s why it is important for the church to make sure the drivers have valid auto insurance: if there is a loss and they are uninsured and at fault, the other injured parties could try to come after the church for compensation.
While not a line of insurance, when used correctly, a liability waiver can help your church. Think of insurance as your last line of defense in protecting the church. The first would be training and proactive policies and procedures to diminish any risk exposure. The next line of defense is to use liability waivers.
A liability waiver, sometimes called a release of liability or a general waiver, is a document that a church has visitors or patrons sign to acknowledge risks and release the business from claims arising from injury or loss. It cannot violate state law and is common in recreational, fitness, and high-risk businesses.
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Frequently Asked Questions (FAQs)
Church insurance is a combination of policies that can help your organization when it suffers a loss. The loss can be to first-party property, like a lightning strike burning out the sound system or a liability claim from someone tripping and falling in the narthex. In either situation, you can turn to your insurance for financial assistance to resolve the loss.
A church represents a unique mix of liability with so many different risk exposures, from volunteer leaders to outreach special events. The buildings are often large and worth millions. When you combine the natural risk of a church, the current atmosphere of inflation, and the chance of natural disasters, the cost of church insurance has risen significantly. In fact, the premiums have risen so high that many churches are struggling to find a carrier that will insure them at a rate the church can afford.
Relying on self-insurance requires a substantial amount of funds that are reserved exclusively for the purpose of insurance. Of course, setting such money aside hampers the abilities of a religious organization in pursuit of its ministry. There is also the question of whether it is permissible.
Commercial auto and workers’ comp are two required types of insurance, and many states do not have a provision for self-insurance for those coverages. Alternatively, if the insurance premium has risen to $30,000 annually and the church has several million that it can set aside, it could be an option for the board to explore.
Bottom Line
With money coming primarily from individual donations, the expense of a claim jeopardizes the existence of a religious organization. It is important to take a balanced approach: manage risks and have the proper coverage. GuideOne, which provides excellent claim and customer service, can help you do both.
