What type of insurance does a church need?

Churches typically need a custom church insurance program that includes property insurance, general liability, pastoral professional liability, sexual misconduct and abuse coverage, workers’ compensation (if the church has employees), and commercial auto coverage. Church insurance is designed to account for worship services, volunteers, youth programs, counseling, and community outreach activities.

Why is church insurance different from regular business insurance?

Churches face risks that standard commercial business insurance policies are not designed to handle, including volunteer-led operations, youth and children’s ministries, pastoral counseling, mission trips, and shared facility use. Many business policies exclude or limit these exposures, which is why specialized church insurance is necessary.

How much does church insurance cost?

The cost of church insurance depends on factors such as congregation size, property value and age, number of employees and volunteers, programs offered, and prior claims history. The goal is to match coverage to how the church actually operates rather than choosing the cheapest policy available.

Does church insurance cover sexual misconduct and abuse claims?

Church insurance can cover sexual misconduct and abuse claims if the coverage is properly included. Most insurers require written abuse prevention policies, background checks, and training procedures for coverage to apply. Without these safeguards, coverage may be limited or excluded.

Are church volunteers covered by insurance?

In many cases, volunteers are covered under the church’s general liability insurance while acting on behalf of the church. Coverage gaps can occur when volunteers drive personal vehicles, participate in off-site events, or engage in activities that require special endorsements.

Are pastors and church leadership covered by insurance?

Church insurance programs often include pastoral professional liability insurance for counseling-related claims and directors and officers (D&O) insurance for board members and leadership. These cover allegations related to counseling services, leadership decisions, and governance matters.

Can a church be sued even if it is a nonprofit?

Yes. Nonprofit status does not prevent a church from being sued. Churches can face claims related to slip-and-fall accidents, employment disputes, youth programs, counseling services, and leadership decisions.

When should a church review its insurance coverage?

Churches should review their insurance coverage annually and whenever there are major changes such as building renovations, new programs, staff changes, or expanded community use. Regular reviews help ensure coverage keeps pace with church operations.

5 Insurance Mistakes Churches Make (And How to Avoid Them)

Jan 26

Written By Jake Lubinski

If you’re responsible for your church’s insurance, you’re probably not an insurance expert—and that’s okay. You have a congregation to lead, programs to run, and a mission to fulfill.

But after reviewing dozens of church policies across Massachusetts, I keep seeing the same mistakes. Some leave churches dangerously exposed. Others waste money on coverage that doesn’t fit. Here are the five I see most often.

1. Insuring the Building at Market Value Instead of Replacement Cost

This is the most expensive mistake a church can make.

Your church building might be worth $800,000 on the real estate market. But if it burned down tomorrow, what would it actually cost to rebuild? For historic Massachusetts churches with stained glass, custom woodwork, and century-old craftsmanship, reconstruction costs often run 2-3x the market value.

I’ve seen churches with beautiful Gothic Revival buildings insured for $1.2 million when actual replacement would cost $3 million or more. After a total loss, they’d face a devastating shortfall.

The fix: Get an appraisal specifically for insurance purposes. Make sure your policy covers full replacement cost, not actual cash value.

2. Skipping Abuse and Molestation Coverage

No church wants to think about this. But claims happen, and they’re among the most financially devastating a church can face.

Many standard commercial policies exclude or severely limit abuse and molestation coverage. Some churches assume they’re covered when they’re not. Others skip it intentionally to save money—a decision that could bankrupt the church if an allegation arises.

The fix: Verify your policy includes adequate abuse and molestation liability coverage (at least $1 million, though $2 million is increasingly recommended). Implement background checks and written protection policies—insurers often require them anyway.

3. Forgetting About Off-Site Events

Your general liability policy covers slip-and-falls in your sanctuary. But what about the youth group camping trip? The mission trip to Puerto Rico? The community service day at the local park?

Many churches don’t realize their standard policy has limited or no coverage for activities away from church property. One accident at an off-site event could expose the church to significant uninsured liability.

The fix: Review your policy’s off-premises coverage. Ask specifically about mission trips, retreats, and community events. You may need to add coverage or purchase special event insurance for certain activities.

4. Treating Workers’ Comp as Optional

Massachusetts law requires workers’ compensation insurance for any organization with employees—including churches. There’s no religious exemption.

Some churches try to classify everyone as volunteers or independent contractors to avoid workers’ comp. This rarely holds up legally. If your “volunteer” administrative assistant works set hours, uses church equipment, and takes direction from the pastor, they’re probably an employee in the eyes of Massachusetts law.

Getting caught without required workers’ comp means fines, back premiums, and personal liability for church leadership. If someone gets hurt, the church pays out of pocket.

The fix: If anyone receives regular compensation for their work at your church—even part-time—talk to an insurance professional about workers’ comp. The cost is usually much lower than churches expect, and it’s not negotiable under Massachusetts law.

5. Never Reviewing the Policy After It’s Set Up

Churches change. You add a preschool program. You buy a van. You renovate the fellowship hall. You hire a part-time youth director.

But the insurance policy from five years ago doesn’t know any of that. I regularly see churches paying for coverage they no longer need (like a van they sold) while missing coverage for new exposures (like the counseling ministry they started).

The fix: Review your policy annually, ideally 60-90 days before renewal. Walk through any changes in staff, programs, property, or activities. Make sure your coverage reflects who you are today, not who you were when the policy was written.

Get a Free Policy Review

I offer free policy reviews for Massachusetts churches. Send me your current declarations page, and I’ll tell you what’s working, what’s missing, and whether you’re paying a fair price.

No pressure, no obligation—just clarity on whether your church is properly protected.

Contact me:

Contact me: jake@halestreetinsurance.com | 978.712.0111 | halestreetinsurance.com/church-insurance

Jake Lubinski

5 Insurance Mistakes Churches Make (And How to Avoid Them)

What Does Church Liability Insurance Actually Cover? A Plain-English Guide

How Much Does Church Insurance Cost in Massachusetts? (2026 Guide)