When a church opens a second location it almost always gets added to the existing policy as another scheduled premises. That is the path of least resistance and for the first year or two it is usually fine. The structural question arrives later, and it is this: when something happens at one campus, what is left for the others?
Three structures
| Structure | How limits work | Best suited to |
|---|---|---|
| Single policy, shared aggregate | All campuses draw on one general aggregate | Two locations, similar size, common governance |
| Single policy, per location aggregate | Each campus has its own aggregate under one contract | Three or more campuses under one entity. Usually the right answer |
| Separate programs | Each campus fully independent | Separately incorporated campuses, or very different risk profiles |
The middle option is the one most churches have never been offered and most should be asking about. A per location aggregate endorsement is comparatively inexpensive and removes the scenario where a claim at the newest campus exhausts the protection at the original one.
What changes when you add a campus
Property is straightforward, the building gets scheduled. Everything else is less obvious. General liability aggregate allocation, as above. Workers compensation, because a new state means new rules and sometimes a new carrier. Auto, if the campus has its own vehicles or staff who drive between sites. And employment practices, because a campus pastor with hiring authority at a distance is a different governance risk than a single site.
Leased campuses add a further layer, since the lease dictates who insures the building, what limits you must carry and who must be named as additional insured. Those requirements are frequently signed before anyone shows the lease to the broker.
Adding a campus this year?
Send the lease or purchase agreement before you sign it. Insurance requirements in a lease are easier to negotiate than to comply with afterwards. Request a free church risk assessment or call 978.712.0111.
The governance question underneath
Insurance structure tends to follow legal structure. If every campus sits under one corporation with one board, one policy with per location aggregates usually fits. If campuses are separately incorporated, separate programs are often cleaner and sometimes unavoidable, because insuring another corporation on your policy creates arguments about who is actually covered.
Churches frequently decide the legal structure for reasons that have nothing to do with insurance and then discover the insurance consequences afterwards. It is worth asking the question in the same meeting.
Questions executive pastors ask
Does a second campus double the premium?
No. Property is additive, but liability and management lines generally scale less than proportionally. The jump is usually smaller than churches expect, which is part of why the structural question gets skipped.
Do we need a separate certificate for each campus?
Generally you can issue certificates per location off one policy, which is one practical advantage of keeping a single contract.
What if a campus is in another state?
Workers compensation becomes state specific immediately, and some carriers are not admitted everywhere. This is the most common reason a multi state church ends up with more than one carrier.
How do we know our aggregate is shared?
Read the declarations page. If there is one general aggregate figure and no per location endorsement listed, it is shared.
Not ready for a full review? Start with our church insurance checklist, a short list of the coverages and limits worth confirming on your current policy before you talk to anyone.
If you would like a second opinion on whether your multi-campus program structure is properly structured for insurance purposes, contact us for a free church risk assessment.
Contact Hale Street Insurance at 978.712.0111 or [email protected] for a free church insurance review. You can also visit our church insurance page or request a quote to get started.
Jake Lubinski is the founder of Hale Street Insurance and a licensed insurance broker with years of church board and stewardship experience. Based in Boxford, MA he works with churches throughout Massachusetts and the US to build insurance and risk programs designed around how ministry actually operates. Reach Jake at [email protected] or 978.712.0111.
Related reading: Multi-Site Church Insurance Coverage Gaps | Satellite Campus Lease and Liability Gaps | Multi-Campus Governance and Board Oversight | Campus Liability at Satellite Locations
