Why Your Faith-Based Organization Needs Liability Insurance
Churches, synagogues, mosques, temples, and other faith-based organizations face a variety of risks with the services they provide. What happens if someone is injured at your place of worship?
Faith-based organizations need a customized liability insurance package to protect against claims of injury or damage to people and property.
What is liability insurance for faith-based organizations?
This type of insurance can also be called business liability insurance.
Liability insurance provides financial protection against third-party claims resulting from injuries and damage to other people or property that can happen at your faith-based organization.
Liability insurance typically covers the legal costs and financial settlements should your place of worship be found legally liable for claims of injury or property damage against a third party, such as a parishioner.
What faith-based organizations need liability insurance?
- Churches
- Chapels
- Temples
- Synagogues
- Mosques
- Faith-based organizations with a registered charity status
- Religious orders
- Monasteries
- Any type of place of worship
What’s in a faith-based liability package?
Here are the common liability insurance coverages for churches, synagogues, mosques, and temples:
General liability insurance
General liability insurance typically protects your place of worship against:
- Bodily injury or property damage
- Protection against libel, slander, false arrest, and copyright infringement
- Medical payments for injuries to a non-employee on your premises.
This protection covers legal costs to defend a claim as well as payments for damages if you are found liable.
Your church or place of worship would need a minimum of $1 million in general liability insurance and probably $2 million or more to protect it against risks it can face.
Commercial property insurance
This type of insurance provides financial support to replace or repair your place of worship’s office if it is damaged by a flood, fire, or severe weather. It also covers vandalism and theft.
Commercial property insurance also covers the building’s contents such as computers, furniture, tools, equipment, and inventory. Commercial property coverage also extends to protect others’ property that is under your care.
Professional liability insurance
Professional liability insurance is also called errors and omissions insurance. This type of insurance helps cover claims against professional negligence, errors/mistakes, or failure to deliver a professional service. For example, if a client says they are not satisfied with the quality of the services provided at your religious institution provided, it could be held legally liable.
Professional liability insurance can help cover your legal costs and related costs.
If your church, mosque, synagogue, or temple is providing counselling-related services and advice, professional liability insurance coverage is essential.
Directors and officers liability insurance
Directors and officers liability insurance protects your religious organization if it’s a registered non-profit or charity with a board of directors. D&O coverage protects board members from lawsuits related to poor decisions, mistakes, or allegations of defamation that leads to a financial loss for your institution.
This type of insurance provides your board members with financial support for legal expenses if they are sued.
This type of insurance usually covers:
- Misleading statements, reporting issues, inaccurate disclosure
- Negligent acts and allegations of misrepresentation
- Breach of legal or fiduciary duties
- Decisions that result in adverse financial consequences for shareholders
- Wrongful dismissal and employee discrimination claims
- Failure to adhere to federal and provincial laws and regulations
How much does liability insurance cost for a place of worship?
Faith-based organizations provide different types of services. The cost of an annual faith-based insurance premium can depend on these factors:
- Your location
- Size of your faith-based organization
- Condition and age of the building and property
- Years of experience as a religious leader or administrator of the property
- How often the place of worship is unoccupied
- The average occupancy rate during services
- Other uses for the place of worship
- The coverages you choose
- Any past insurance claims
How much insurance should a place of worship have?
It really depends on your faith-based organization’s budget, risks, and services.
Make sure to consider the operational risks your place of worship faces and the activities that are provided.
Ask your Western Financial group business insurance expert to help you get the right faith-based coverage at the right value to protect your church, synagogue, mosque, temple, or other place of worship.
