Churches have unique exposures that other businesses don’t have…and that’s why working with an insurance agent who specializes in churches can not only save you money…but also protect you from having an uninsured claim. Here’s a list of 10 things that your insurance agent probably didn’t tell you – but you should know.

1) Business Income & Extra Expense

  • Business Income needed to cover lost income during interruption of business.
  • Extra Expense needed to pay for temporary relocation expenses- rent, deposits, etc.
  • Make arrangements with another church prior to a loss. Be prepared.
  • Most churches don’t have this coverage.

2) Sprinkler Credit

  • Confirm that your church is receiving credit from ISO for sprinkler system if applicable.
  • Sprinkler rates can save you thousands of dollars a year.
  • Property premiums are typically the largest insurance purchase for churches- don’t overpay.

3) Construction & Valuation

  • Incorrect construction classification can cost you thousands of dollars a year.
  • Use Replacement Cost Value – not loan amount! Replacement Cost Report can help determine correct valuation.
  • EFIS often causes building construction to be downgraded by ISO. DRYVIT and STO brand usually qualify as noncombustible with ISO.

4) Sexual Abuse

  • Buy highest limit you can – $1,000,000 may be the highest available to you.
  • Leading cause of claims against churches and schools.
  • Multi-million dollar judgments common.
  • Risk MUST be managed through proper screening and training.
  • Occurrence form preferred over claims made form. Very Important!

5) Disclaimers & Facility Use Forms

  • Provides some protection.
  • Clarify possible risks in your disclaimer.
  • Clarify responsibilities.
  • Fully informed and voluntary consent is critical.

6) Accident Policies

  • Fills in coverage gaps.
  • Very reasonable cost.
  • “Protects” liability policy by keeping slip and fall medical claims off GL policy.

7) Athletic Participant Liability

  • Covers sports & recreational activities often excluded in GL. Organized sports activity is a standard GL exclusion.
  • Claims can be devastating.
  • 4.75 million dollar judgment for a Florida church ski trip accident.

8) Hired & Non-Owned Auto

  • But we don’t own any vehicles…you still need it!
  • Covers church for employees, members and others using their personal vehicles for the organization.
  • Covers church for liability using rented vehicles.
  • “Must Have” coverage – inexpensive.

9) Employment Practices Liability

  • Churches & nonprofits are prime targets.
  • Average cost to defend a claim is $125,000.
  • Average cost of claim is $200,000.
  • Employee Handbook & doctrinal statement a must.

10) Directors & Officers Liability

  • Professional liability for trustees, elders & governing body.
  • Fiduciary responsibilities & personal liability.
  • General Liability insurance EXCLUSION!
  • Reasonable cost for higher limits of coverage.

If you have any questions or would like more detailed explanations about the content in this article, please give us a call at 407-898-2211 or email us at

Posted 8:59 AM

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