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.

Your Church Insurance Annual Review Checklist: 10 Questions to Ask Before Renewal

Jan 27

Written By Jake Lubinski

Most churches renew their insurance policy the same way every year: the renewal notice arrives, someone writes a check, and the policy continues unchanged. But churches change. Programs expand. Buildings get renovated. Staff comes and goes.

If your coverage hasn’t been reviewed in years, there’s a good chance it no longer matches your church’s actual needs. You might be paying for coverage you don’t need—or worse, missing protection for risks you didn’t have before.

We recommend every church do an annual policy review 60-90 days before renewal. Here’s the checklist we use when reviewing policies for our clients.

The 10-Question Annual Review Checklist

Has our building value changed?

Construction costs have increased significantly in recent years. A building insured for $2 million in 2020 might cost $2.8 million or more to rebuild today.

What to check: Compare your current building limit to recent construction cost estimates in your area. If you’ve done renovations, additions, or improvements, make sure those are reflected in your coverage.

2. Have we added or removed any programs?

New programs create new exposures. A preschool brings different risks than an adult Bible study. A food pantry has different liability considerations than a choir.

What to check: List every ministry, program, and regular activity your church conducts. Then verify each one is covered under your current policy. Pay special attention to programs involving children, food service, transportation, or counseling.

3. Has our staff situation changed?

Adding employees—even part-time—affects your workers’ compensation requirements. Losing employees might mean you’re paying for coverage you no longer need.

What to check: Review your employee count and classifications. Make sure your workers’ comp policy reflects your current payroll. If you’ve added clergy, verify they have appropriate professional liability coverage.

4. Do we have proper coverage for volunteers?

Many churches rely heavily on volunteers who drive their own cars, work with children, or handle money. Your policy should address these exposures.

What to check: Verify your policy includes hired and non-owned auto coverage (for volunteers using personal vehicles), volunteer accident coverage, and that volunteers are included under your general liability.

5. Are off-site activities covered?

Mission trips, retreats, community service days, and off-campus youth events may have limited or no coverage under a standard church policy.

What to check: Review your policy’s off-premises coverage. Ask specifically about international travel, overnight trips, and activities at locations you don’t own or lease.

6. Is our abuse and molestation coverage adequate?

This coverage is essential but often overlooked. Limits that seemed adequate five years ago may not be sufficient today.

What to check: Confirm you have abuse and molestation coverage, note the limit, and verify it applies to both employees and volunteers. We generally recommend at least $1 million, with $2 million increasingly becoming the standard.

7. Have we acquired or disposed of any vehicles?

Church-owned vehicles need to be listed on your auto policy. Vehicles you no longer own should be removed.

What to check: Compare your auto policy’s vehicle schedule against what your church actually owns. Make sure any new vehicles are added and sold vehicles are removed.

8. Has our equipment inventory changed?

Sound systems, computers, musical instruments, and A/V equipment add up quickly. Many churches are significantly underinsured on contents and equipment.

What to check: Do a walk-through and estimate the replacement cost of your equipment, furniture, and supplies. Compare that number to your contents coverage limit.

9. Are we taking advantage of available discounts?

Insurance carriers offer various discounts for things like security systems, fire suppression, background check programs, and safety training.

What to check: Ask your agent what discounts are available and which ones you qualify for. Implementing a few safety measures could reduce your premium.

10. When did we last get competitive quotes?

Loyalty doesn’t always pay in insurance. Rates vary significantly between carriers, and a church that was competitively priced three years ago might be overpaying today.

What to check: If it’s been more than 2-3 years since you shopped your coverage, it’s worth getting comparison quotes. Even if you stay with your current carrier, you’ll know you’re paying a fair price.

We’ll Review Your Policy for Free

We offer complimentary policy reviews for churches. Send us your current declarations pages, and we’ll go through this checklist with you. We’ll tell you what’s working, what might be missing, and whether your pricing is competitive.

No obligation, no pressure—just an honest assessment of your current coverage.

• Email: jake@halestreetinsurance.com

• Phone: 978.712.0111

• Website: halestreetinsurance.com/church-insurance

Jake Lubinski

Your Church Insurance Annual Review Checklist: 10 Questions to Ask Before Renewal

Church Insurance for Small Congregations: A Complete Guide for Massachusetts Churches

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