AG Financial Solutions

Your church, its assets, and its members are the essential components of your ministry. very effort should be taken to make sure that all are adequately protected. Though not a substitute for good risk management and safety and security safeguards, insurance is a valuable tool and should be understood by the church leadership.

Furthermore, developing a positive, open relationship with your insurance agent is critical in determining your current and ongoing needs. They are in the best position to clarify coverage, help you understand terminology, and keep your ministries protected.

This coverage provides protection for your buildings and property. Areas of protection would include lightning, fire, vandalism, hail, explosions, etc. Personal property is often underinsured. Therefore when a loss occurs, coverage may not be complete. That’s why having an updated inventory list with values attached to each property item is important.

Additional Property Coverage

(Always check with your insurance carrier.)

• Water damage – Coverage’s are available for floods and sewer backup.
• Employee dishonesty/treasury bond – Various limits are available.
• Limited law and ordinance enforcement coverage – This extends coverage to three areas: the value of the undamaged portion of building that requires demolition; the expense attached to the demolition and removal of the undamaged portion; and the increased cost of construction that may arise from a more costly construction standard due to changes in laws and ordinances.
• Pastor’s business or personal property – Most policies cover the pastor’s business related property. Some will include their non-business personal property at the parsonage or rented dwelling. Check with your agent.
• Limited building and personal property – Limited coverage on property that is away from the church premises. However, some property may need to be covered on a separate Inland Marine floater.
• Systems and equipment breakdown coverage – While property policies will cover such things as fire, explosions, etc., most will not cover systems if they break down. This coverage can be used to insure against breakdown replacement or repairs.

In recent years churches have become much more liable to lawsuits and claims for things they failed to do or did do that they should not have done. If someone claims some level of harm, you will want to know you have coverage.

• General liability – Optional endorsements are available for a wide variety of risks. Your agent should clearly understand your ministries so the proper coverage can be obtained. Below are some of the available coverage’s.
• Sexual misconduct coverage – Not only is it wise to have coverage for a real incident but also to defend against an allegation. Some insurers will require additional standards to be met to receive higher coverage limits.
• Director’s and Officer’s Coverage – This is coverage for decisions made by your board/officers/trustees.
• Employment Practices Liability – This endorsement provides coverage for claims arising from practices associated with employment-related events.
• Counseling Acts Liability (non fee-based and fee-based) – Pastors and counselors are sometimes accused of physical and emotional harm. This endorsement would provide coverage.
• Excess Liability (Umbrella) – This is an added coverage that acts as an umbrella over your other liability coverage’s should they those coverage limits be reached through claims experience.
• Pastor’s personal liability – Should the pastor and/or his or her family be involved in a claim event away from church property, this endorsement would provide coverage.
• Foreign liability and foreign travel insurance – If your church is involved in travel outside the continental United States, there may be limits on your basic coverage. Check with your agent to see if this coverage is needed.
• Workers’ compensation – Each state has its own version of workers’ compensation laws and coverage. You agent should be contacted to see which coverage’s and limitations there are available and required in your state.

Business Auto

Any time a church owns its own vehicles, coverage is necessary. Also, all churches should have hired and non-owned auto liability coverage. If anyone runs errands for the church (i.e. getting the mail, picking up supplies, etc.) the church can be held responsible because the driver was operating on behalf of the church. The cost is minimal and every church has this risk. Some insurance providers have limitations both on vehicles and drivers. Check with your agent.

There are other coverage’s available depending on the level of need and activity your church is involved in. The key is always maintaining a good relationship with your agent and keeping lines of communication open should you have questions regarding your coverage. Also, if you engage in a new ministry, add a new building or room, or obtain a piece of equipment, contact your insurance professional so your policy can be reviewed for sufficient coverage’s.

Guard the good deposit that was entrusted to you – guard it with the help of the Holy Spirit who lives in us.
2 Timothy 1:14 (NIV)