Why Insurance Matters for Churches
Insurance coverage helps churches prepare for unexpected risks. But with so many providers and coverage types, the process can feel overwhelming.
“When you say the word ‘insurance,’ it’s a huge subject. Not all coverage is equal.” —Phill Martin, CEO, The Church Network
Why Work with a Broker?
Churches don’t have to navigate insurance alone. A qualified broker can guide you toward the coverage your church truly needs.
“Consider an insurance broker as a consultant, your advisor… a trusted advisor… with that comes expertise.” —Peter Persuitti, Global Managing Director, Gallagher
What a Broker Can Do:
- Match your church with the right insurance provider
- Explain policy options and exclusions
- Handle claims and provider communication
- Offer ongoing customer service and support
Ask Brokers Upfront:
- What services do you offer?
- How do you support churches during claims?
- Do you have experience working with churches?
“I would request the broker provide information that clarifies their services.” —Rodney Flanders, AVP, Church Mutual Insurance Company
Know Your Coverage Options
Understanding coverage types is essential before selecting a broker.
“Claims-made coverage is temporary; occurrence coverage is permanent. If it’s occurrence, you have permanent coverage.” —Charlie Cutler, President, ChurchWest Insurance Services
Liability Coverage to Consider:
- Church-sponsored activities
- Employment practices
- Allegations of sexual misconduct
“[M]ake sure [you] have permanent coverage.” —Cutler
A good broker should explain coverage terms clearly and help you select what’s appropriate for your church.
How to Choose the Right Broker
Not every broker understands the unique risks churches face. That’s why experience matters.
“I can’t emphasize enough the church’s need to go with a broker who is experienced in church insurance.” —Frank Sommerville, Attorney and Senior Editorial Advisor, Church Law & Tax
Look for Brokers Who:
- Specialize in church insurance
- Know about ministry-specific risks
- Have proven experience with similar organizations
Smart Selection Steps:
- Ask other churches for broker referrals.
- Contact and evaluate broker references.
- Ask about the broker’s experience with church-specific policies.
Planning for Insurance Disputes
Even if your church hasn’t faced a claim yet, don’t skip insurance coverage. In 2016, one of the top reasons churches ended up in court was insurance-related disputes.
Ask Brokers:
- How have you handled disputes in the past?
- Can you share stories from previous clients?
“Nothing is better than storytelling… What you are especially looking for is experience working with the faith-based community.” —Persuitti
If a major claim arises, churches should consult legal counsel.
“Any time [churches] have a major potential claim, they should have an attorney involved.” —Sommerville
Some policies may appear to cover a claim but fall short. Attorneys can help clarify what is or isn’t covered.
“There are attorneys who specialize in nothing but coverage disputes.” —Sommerville
Reviewing and Reassessing Policies
Churches should periodically review their insurance policies. Don’t assume last year’s renewal still meets your needs.
“Just like our personal insurance coverage, [don’t] be comfortable renewing the policy over and over again.” —Martin
Review Tips:
- Conduct annual check-ins with your broker
- Schedule periodic reviews with legal counsel
“Periodically [churches] should have their policies reviewed by an attorney—especially the larger churches.” —Sommerville
Final Thought
Churches that proactively ask questions, understand their risks, and work with trusted brokers can secure insurance that truly protects. These partnerships not only reduce risk but also empower ministry leaders with peace of mind.
