Coverage Basics

ABOUT THIS INFORMATION

This information is intended only to provide an overview of the coverages you may need to properly protect your ministry. It is important that you seek advice from a professional insurance agent who specializes in covering churches and non-profit organizations. You should review your policies and understand your limits, coverage, and exclusions. UMIP and its agent, Sovereign Insurance Group are ready to assist you.

Covers buildings, business personal property, and equipment

Covered causes of loss and deductible amounts vary by carrier and policy

You should have the value of your building (cost to replace not market value) updated every five years

Buildings can be insured at replacement cost, actual cash value, or functional replacement
Commercial general liability covers bodily injuries, damage to property of others, and personal injury. Provides coverage for medical payments, a no-fault payment for injuries that can be used to pay for injuries and may help reduce the possibility of a lawsuit.

Pastoral counseling provides coverage unpaid and possibly paid counseling services.

Hired and Non-owned automobile coverage provides coverage for hired or non-owned vehicles while being used for church business. It’s difficult to imagine a church that does not need this coverage. It serves as secondary coverage over the vehicles often limited coverage.

Sexual misconduct is important given the increase in number of claims and the cost of defending against allegations. This coverage is often available as “claims made” coverage so extending coverage for past periods is important.

Employee benefits liability provides coverage for errors and omissions in the administration of benefit plans. It also includes workers compensation, pension plans, unemployment compensation, and social security.

Employment practices liability covers benefit plans defends against claims alleging damages because of negligent acts, errors, or omissions, or violations of Federal anti-discrimination laws, in the hiring, supervising, promoting, or terminating of employees. It also covers claims of sexual harassment and permitting or promoting a “hostile workplace environment.”

Umbrella coverage provides an additional level of protection for your workers compensation and liability coverages. It does not apply to property policies.

Excess coverage provides an additional level of protection over a specific line of coverage. It may also provide additional coverage not provided in the underlying coverage.
Provides no-fault coverage for work-related injury, illness, and death.

It also provides sole-remedy protection against lawsuits making civil action against your church much less likely.

Employers' liability provides protection in the event you do get sued for employe negligence, unsafe working conditions, etc.

Every church should have this coverage for employees and volunteers. It’s benefits the church and the employees receive first-dollar coverage for medical treatment and prescriptions as well as partial income replacement and death and survivor benefits.
Applies for all church-owned vehicles.

Provides liability protection and can also provide coverage for physical damage to your auto for accidents and other causes such as vandalism and theft.

You should carry $1,000,000 of liability coverage regardless of your state’s minimum required coverage.
This coverage can be very important if you engage in mission projects outside the United States, its territories, and Canada.

It can cover liability, property, automobile liability, kidnap and ransom, and more.

This is different from trip and travel insurance.
This coverage insures against allegations of duty breaches of organizations which have taken on the responsibility of management, conservation, and/or disposition of property or investments for the benefit of others.

This protection is especially important for organizations that manage their own foundations.
The Book of Discipline (¶ 2511) requires that treasurers be bonded.

Everyone involved in church finances should be included and volunteers can also be bonded.

It is inexpensive coverage that can increase your coverage limits and provides coverage with no deductible.

Coverage Basics

ABOUT THIS INFORMATION

Covers buildings, business personal property, and equipment

Covered causes of loss and deductible amounts vary by carrier and policy

You should have the value of your building (cost to replace not market value) updated every five years

Buildings can be insured at replacement cost, actual cash value, or functional replacement

Commercial general liability covers bodily injuries, damage to property of others, and personal injury. Provides coverage for medical payments, a no-fault payment for injuries that can be used to pay for injuries and may help reduce the possibility of a lawsuit.

Pastoral counseling provides coverage unpaid and possibly paid counseling services.

Hired and Non-owned automobile coverage provides coverage for hired or non-owned vehicles while being used for church business. It’s difficult to imagine a church that does not need this coverage. It serves as secondary coverage over the vehicles often limited coverage.

Sexual misconduct is important given the increase in number of claims and the cost of defending against allegations. This coverage is often available as “claims made” coverage so extending coverage for past periods is important.

Employee benefits liability provides coverage for errors and omissions in the administration of benefit plans. It also includes workers compensation, pension plans, unemployment compensation, and social security.

Umbrella coverage provides an additional level of protection for your workers compensation and liability coverages. It does not apply to property policies.

Excess coverage provides an additional level of protection over a specific line of coverage. It may also provide additional coverage not provided in the underlying coverage.

Provides no-fault coverage for work-related injury, illness, and death.

It also provides sole-remedy protection against lawsuits making civil action against your church much less likely.

Employers' liability provides protection in the event you do get sued for employe negligence, unsafe working conditions, etc.

Every church should have this coverage for employees and volunteers. It’s benefits the church and the employees receive first-dollar coverage for medical treatment and prescriptions as well as partial income replacement and death and survivor benefits.

Applies for all church-owned vehicles.

Provides liability protection and can also provide coverage for physical damage to your auto for accidents and other causes such as vandalism and theft.

You should carry $1,000,000 of liability coverage regardless of your state’s minimum required coverage.

This coverage can be very important if you engage in mission projects outside the United States, its territories, and Canada.

It can cover liability, property, automobile liability, kidnap and ransom, and more.

This is different from trip and travel insurance.

This coverage insures against allegations of duty breaches of organizations which have taken on the responsibility of management, conservation, and/or disposition of property or investments for the benefit of others.

This protection is especially important for organizations that manage their own foundations.

The Book of Discipline (¶ 2511) requires that treasurers be bonded.

Everyone involved in church finances should be included and volunteers can also be bonded.

It is inexpensive coverage that can increase your coverage limits and provides coverage with no deductible.