Why Church Members Need Professional Liability Insurance

The church is beyond just a building where people gather and pray for their needs. It is also an institution with paid staff, a board of directors, and volunteers. Like any organization, the church faces risks since most work is exposed to the public and the community. 

While many churches have insurance to protect their assets, many do not realize that their members may also need professional liability insurance to protect them from financial damages in case of a lawsuit.

The Different Types of Liability Insurance Churches Need

Depending on the needs of the church, insurance policies will differ. Some churches only need basic property and general liability insurance, while others need more specific coverage for their employees and volunteers.

The following are some of the most prevalent types of liability insurance churches need:

• Property Insurance – Property insurance protects the church from damage or theft of physical property. This includes the building, the contents inside the building, and any outdoor property the church owns.

• General Liability Insurance – General liability insurance defends the church from lawsuits from third-party injuries or property damage. This insurance also covers the church in case of slander or libel.

• Professional Liability Insurance – Professional liability insurance, also known as errors and omissions insurance, protects the church from lawsuits that may arise from the negligent actions of its employees or volunteers. This type of insurance is important for churches that offer professional services, such as counseling or financial advice.

• Directors and Officers Insurance – Directors and officers insurance covers the church from lawsuits from the actions of its board of directors or officers. This type of insurance is important for churches with a board of directors or officers.

• Employment Practices Liability Insurance – Employment practices liability insurance protects the church from lawsuits that may arise from its employment practices, such as discrimination or harassment. This type of insurance is important for churches that have employees.

• Umbrella Insurance – This special insurance covers losses above the limit of the primary insurance policy. It’s a supplemental policy that provides additional coverage for losses exceeding the primary policy's limits. Umbrella insurance is important for churches that have significant assets to protect.

Why Do Church Members Need Professional Liability Insurance?

While the church may have insurance to protect its assets, its members may also need professional liability insurance to protect them from financial damages in case of a lawsuit. For example, if a church member is accused of damaging property, the church could be liable for the damages. The insurance policy will pay for the damages if the church member has professional liability insurance.

Final Thoughts

Several professional liability insurance policies are available, so choosing one that meets your specific needs is important. Always read the policy carefully and ask questions if you don't understand something. It's also ideal to review your church insurance policy periodically to ensure it still meets your needs.

Church Insurance Man provides a variety of church insurance packages for your needs. Contact us today to discuss your preferred liability insurance policy.