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 Medium-Sized Congregations: Finding the Right Balance

Jan 30

Written By Jake Lubinski

Medium-sized congregations often find themselves in a challenging position when it comes to insurance. Too large for basic small-church policies, but not quite needing the complex coverage programs designed for megachurches. Here’s how to find the right balance.

What Defines a Medium-Sized Church?

For insurance purposes, we typically consider medium-sized congregations to have 150-500 regular attendees, multiple staff members (often 3-10 employees), and facilities that include more than just a sanctuary—perhaps a fellowship hall, offices, classrooms, or a small gymnasium.

These churches face a unique set of risks that require thoughtful coverage decisions.

Coverage Priorities for Medium-Sized Churches

General Liability: Moving Beyond Minimums

While a small church might get by with $1 million in general liability coverage, medium-sized congregations should consider $1-2 million limits. More members means more activity, more events, and more potential for accidents.

Property Coverage: Account for Growth

Medium-sized churches often have more valuable assets than they realize: sound systems, musical instruments, commercial kitchen equipment, playground structures, and vehicles. We recommend a thorough property inventory to ensure nothing is underinsured.

Workers’ Compensation: Required Coverage

Once you have employees—even just a part-time secretary or custodian—most states require workers’ compensation coverage. Medium-sized churches typically have enough staff to make this a significant consideration.

Directors and Officers Coverage: Protecting Leadership

With formal boards, committees, and growing financial operations, D&O coverage becomes important at this stage. It protects your volunteer and paid leadership from personal liability arising from church decisions.

Sexual Misconduct Liability: Essential at Every Size

Any church with youth programs, counseling ministries, or childcare needs this coverage. For medium-sized congregations with active children’s and youth ministries, we recommend limits of at least $1 million.

Hired and Non-Owned Auto: Often Overlooked

When staff or volunteers use personal vehicles for church business—picking up supplies, transporting youth group members, visiting homebound members—your church can be liable. This coverage fills that gap.

The Medium-Sized Church Insurance Checklist

We recommend medium-sized congregations review these coverage areas annually:

General liability ($1-2 million)
- Property coverage at replacement cost
- Workers’ compensation (if you have any employees)
- Directors and Officers liability
- Sexual misconduct coverage ($1 million minimum)
- Hired and non-owned auto
- Umbrella policy ($1-2 million for additional protection)

Growing Into Your Coverage

The advantage of addressing insurance properly at the medium-sized stage is that you build a foundation for future growth. Churches that establish comprehensive coverage now avoid scrambling to fill gaps when they expand.

We work with congregations across the country to build insurance programs that grow with them. If your church is outgrowing its current coverage—or you’re not sure whether your policy matches your actual risks—we offer free coverage reviews.

Jake Lubinski

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

Church Directors and Officers Insurance: Protecting Your Church Leadership

Church Insurance for Large Congregations: What You Need to Know