Place of Worship Insurance

A comprehensive church insurance policy may include the following types of coverages:

• Commercial General Liability (CGL) Insurance: CGL is a liability insurance policy protecting your church from third-party property damage or bodily injury claims and allegations. For instance, if you are sued for bodily injury damages by a member of your congregation following a slip-and-fall accident, CGL may cover the injured person’s medical expenses and your legal fees regardless of the outcome of the lawsuit. Even if you aren’t sued, CGL coverage reimburses others for medical or funeral expenses as a result of bodily injury or death sustained by an accident under the conditions specified in the policy.

• Commercial Property Insurance: Commercial property insurance is designed to protect your church and its contents from unexpected events that are out of your control, like damage or loss because of fire, windstorms, theft, or vandalism. Also known as business property or business contents insurance, commercial property insures your building, its contents and inventory, fixtures and furnishings, and any electronic devices on the premises.

• Professional Liability Insurance: Also referred to as errors and omissions (E&O) insurance, professional liability coverage provides financial protection for claims against your church alleging negligence, misconduct, or failing to deliver a service as promised. Most religious organizations provide their congregations with counselling-related services and advice, making this type of coverage a must-have.

• Directors and Officers (D&O) Liability Insurance: If your church or religious organization is a registered non-profit or charity with a board of directors, you may require D&O coverage to protect board members from lawsuits related to poor decisions, mistakes, or allegations of defamation that leads to a financial loss for your institution. Essentially, D&O insurance provides your board members with financial support for legal expenses if they are sued.

Additional coverages may include:

• Commercial Crime Insurance: Faith-based organizations tend to have valuable gold and silver items, and they handle financial donations from their communities. Adding commercial crime coverage to your overall policy protects you from the internal theft of money and other securities, forgery, and fraud.

• Event Liability Insurance: Religious organizations often host or organize community and faith-based events. Event liability insurance is designed to protect event hosts, organizers, and planners from third-party bodily injury and third-party property damage claims that arise at such gatherings. Also called special event liability insurance, it’s temporary coverage for protecting your finances from claims hosted by your organization. 

• Abuse and Molestation Insurance: This kind of insurance is designed to cover the financial and reputational damage related to an allegation of sexual abuse or molestation. It covers a religious organization’s directors, employees, clergy, and volunteers for negligent hiring, supervision, training, or failing to report an act of abuse or molestation by an employee to the authorities.

• Terrorism Insurance: Terrorism insurance protects you financially if your place of worship is damaged by an act of domestic terrorism. It includes coverage for an attack on or near your facilities that result in bodily injuries, business interruption, relocation costs, and reputational damage.