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.

Church Insurance for Large Congregations: What You Need to Know

Jan 29

Written By Jake Lubinski

Large congregations face insurance challenges that smaller churches simply don’t encounter. With more members, larger facilities, and expanded programs, the stakes are higher—and the coverage gaps can be more costly.

Here’s what we recommend large churches consider when evaluating their insurance program.

Higher Liability Limits Are Essential

A church with 500+ members hosting multiple weekly services, youth programs, and community events has significantly more exposure than a small congregation. We typically recommend large churches carry at least $2-3 million in general liability coverage, with an umbrella policy providing an additional $5-10 million.

Why? A single serious injury on your property or a vehicle accident during a church trip can quickly exceed standard policy limits.

Directors and Officers Coverage Becomes Critical

Large churches often have formal boards, multiple staff members, and complex financial operations. D&O insurance protects your leadership from claims alleging mismanagement, wrongful termination, or breach of fiduciary duty.

As churches grow, so does the likelihood of employment disputes and governance challenges. This coverage is no longer optional—it’s essential.

Employment Practices Liability (EPLI)

With more employees comes more employment risk. Large churches need robust EPLI coverage to protect against claims of discrimination, harassment, wrongful termination, and wage disputes.

We’ve seen churches face six-figure settlements over employment claims. Proper EPLI coverage can mean the difference between a manageable situation and a financial crisis.

Property Coverage Needs Special Attention

Large church buildings often have unique features: pipe organs worth hundreds of thousands, custom stained glass, commercial kitchens, gymnasiums, and AV equipment. Standard property coverage may not adequately protect these specialized assets.

We recommend a detailed property inventory and replacement cost valuation—not just market value coverage.

Cyber Liability for Large Donor Databases

Large congregations often manage substantial donor databases, online giving platforms, and member management systems. A data breach affecting thousands of records creates significant liability exposure.

Cyber coverage should include breach notification costs, credit monitoring for affected members, and regulatory defense expenses.

Multi-Location Considerations

Many large churches operate satellite campuses, schools, or community centers. Each location needs appropriate coverage, and your policy structure should account for shared operations across multiple sites.

The Bottom Line

Large churches need insurance programs, not just policies. We work with congregations nationwide to build comprehensive coverage strategies that protect your ministry, your members, and your mission.

Ready for a coverage review? Contact us at 978.712.0111 to schedule a consultation.

Jake Lubinski

Church Insurance for Large Congregations: What You Need to Know

Church Insurance for Medium-Sized Congregations: Finding the Right Balance

Church Workers' Compensation Insurance: What Every Congregation Needs to Know