What are the insurance needs of a new church plant? This is very important to know before you start. Below is a list of insurance needs that you must discuss with your insurance broker.
I. Starting the church under your reproducing church
Extended liability policy.
If you are going to start the church and not become autonomous right away, your ministry is considered to be under your home church. Speak to your pastor about this policy in order to protect you and them. This coverage is very inexpensive but essential. You will also want to look into covering your church's contents for use off of your home church's property.
II. Starting a church that becomes autonomous
If you become autonomous, you will need to have your own insurance. The types of coverage you need to consider are:
A. Liability/Contents Policy
B. Vehicle Policy
C. Trailer Policy
D. Director and Officers and Sex Acts Coverage
III. Church Insurance Brokers
Jimmy Spencer, CPCU, AIM
Brotherhood Mutual Broker
Executive Agency Director
American Church Group – Ohio
614/600-8450
Website
Brotherhood Mutual Insurance Company
6400 Brotherhood Way, Fort Wayne, IN
800-333-3735
Website
Church Mutual Insurance Company
P.O. Box 357
3000 Schuster Lane
Merrill, WI 54452-0357
Telephone: (800) 554-2642
Website
Ask your pastor for the name of the company he uses.
I. Starting the church under your reproducing church
Extended liability policy.
If you are going to start the church and not become autonomous right away, your ministry is considered to be under your home church. Speak to your pastor about this policy in order to protect you and them. This coverage is very inexpensive but essential. You will also want to look into covering your church's contents for use off of your home church's property.
II. Starting a church that becomes autonomous
If you become autonomous, you will need to have your own insurance. The types of coverage you need to consider are:
A. Liability/Contents Policy
- This will cover your liability issues and your content if stolen or damaged. If you are renting a facility, you can still be held liable in certain situations.
B. Vehicle Policy
- If the church owns a vehicle, a vehicle policy is needed.
- A very important coverage to have is a Hired & Non-Owned policy. First, if you use your personal car for church use and you will, and you get into an accident, this will help cover you. It comes out that you were driving for a church function. Your personal liability insurance will be primary; however, they can also come after your church, and this policy will cover you. Also, if you borrow a vehicle from another church, or rent vehicles, this policy will cover you.
C. Trailer Policy
- If you own a church trailer, you might need to add an Inland/Marine policy.
- Your church equipment is covered when it is at the church location under your liability policy. This policy covers your trailer content no matter where it is located. So, if you are storing your equipment all week in a trailer, you will need to ask about getting this policy also. Ask about a discount based on where the trailer is stored. There can be discounts available if you store it in a locked location as opposed to your driveway.
D. Director and Officers and Sex Acts Coverage
- Sadly, we live in a day that this is important to consider. The Director and Officers policy provides financial protection and legal defense for claims of financial damage that result from decisions made by your organization’s leaders.
- The Sex Acts policy protects your church or related ministry when someone makes a claim of sexual misconduct or sexual harassment against your organization. Coverage also applies to situations that involve improper reporting of child abuse to law enforcement authorities and failure to supervise or monitor a convicted sexual offender when he or she is on your premises.
III. Church Insurance Brokers
Jimmy Spencer, CPCU, AIM
Brotherhood Mutual Broker
Executive Agency Director
American Church Group – Ohio
614/600-8450
Website
Brotherhood Mutual Insurance Company
6400 Brotherhood Way, Fort Wayne, IN
800-333-3735
Website
Church Mutual Insurance Company
P.O. Box 357
3000 Schuster Lane
Merrill, WI 54452-0357
Telephone: (800) 554-2642
Website
Ask your pastor for the name of the company he uses.