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

You’ve heard you need liability insurance for your church. Your current policy probably includes it. But do you actually know what it covers—and what it doesn’t?

After working with churches across Massachusetts, I’ve found that most church leaders have a vague sense that liability insurance “covers lawsuits.” That’s partly true, but the details matter. Let me break it down.

What Church Liability Insurance Is Designed to Do

Liability insurance protects your church when someone claims you’re responsible for their injury, damage to their property, or other harm. It covers two things: the cost of defending against the claim (legal fees) and any settlement or judgment if you lose.

Without liability coverage, your church would pay these costs directly—potentially hundreds of thousands of dollars.

The Three Main Types of Church Liability Coverage

1. General Liability (Premises and Operations)

This is the foundation. General liability covers claims arising from your church’s physical premises and regular operations.

What it typically covers:

• A visitor trips on a loose carpet and breaks their wrist

• Someone slips on ice in your parking lot

• A piece of ceiling tile falls and hits a congregant during service

• A church volunteer accidentally damages a member’s car while directing traffic

• Food poisoning from a church potluck

What it usually doesn’t cover:

• Intentional acts by church staff or volunteers

• Injuries to church employees (that’s workers’ comp)

• Damage to the church’s own property (that’s property insurance)

• Professional services like counseling (needs separate coverage)

Most churches carry $1 million per occurrence and $2-3 million aggregate for general liability.

2. Professional Liability (Pastoral Counseling)

General liability has a significant gap: it doesn’t cover claims arising from professional services like counseling.

If a church member claims they were harmed by advice given during pastoral counseling—or that their confidence was betrayed—general liability won’t respond. You need professional liability coverage.

What it typically covers:

• Claims of harmful advice from pastoral counseling

• Allegations of breach of confidentiality

• Claims that counseling caused emotional distress

• Referral failures (not referring when you should have)

Important note: Coverage often applies only to ordained clergy. If lay counselors provide counseling at your church, verify they’re covered too.

3. Abuse and Molestation Liability

This is the coverage nobody wants to think about—but it’s essential.

Allegations of abuse or molestation are among the most devastating claims a church can face. Standard general liability policies typically exclude or severely limit this coverage, which means you may have no protection precisely when you need it most.

What it typically covers:

• Defense costs when allegations arise against staff or volunteers

• Settlements or judgments if the church is found liable

• Claims that the church failed to properly screen or supervise

Coverage limits are usually $1-2 million. Given the severity of these claims, some churches carry higher limits.

Beyond the Basics: Other Liability Exposures

Directors and Officers (D&O) Liability — Protects your board members and church leadership from claims alleging mismanagement, financial errors, or wrongful decisions made in their official capacity.

Employment Practices Liability — Covers claims from employees (or former employees) alleging wrongful termination, discrimination, harassment, or other employment-related issues.

Cyber Liability — Increasingly important as churches handle online giving, member databases, and email communications. Covers data breaches, ransomware attacks, and related claims.

Hired and Non-Owned Auto Liability — If church volunteers use personal vehicles for church business—picking up supplies, driving youth to events—your church could be liable for accidents. This coverage fills that gap.

The Bottom Line

Liability insurance is your church’s financial protection against claims you can’t predict. The question isn’t whether something could go wrong—it’s whether your church can survive financially if it does.

If you’re not sure what your policy covers, now is the time to find out. Review your declarations page, ask your agent specific questions, and make sure your coverage matches your church’s actual activities.

Need a Second Opinion?

We review church insurance policies for free. If you’re a Massachusetts church—or anywhere in the US—send us your current policy, and we’ll tell you what’s solid, what’s missing, and whether you’re paying a fair price.

Contact me:

• Email: jake@halestreetinsurance.com

• Phone: 978-712-0111

• Website: halestreetinsurance.com/church-insurance