Understanding Church and Nonprofit Insurance
CUSTOMIZED
COVERAGE
We can help you build the policy that’s right for you. No more. No less.
How do insurance policies protect you from risk? And which ones do you need?
Insurance can be intimidating. But we don’t want it to be. It’s a foundational part of your church or nonprofit and its daily operations. In this guide to understanding church and nonprofit insurance, we identify risks and the types of coverage that address them. Of course it won’t answer every question. That’s why we’re here to help. Let us know how we can serve you today.
TYPES OF COVERAGE
Property insurance
The risk Your church or nonprofit needs to repair or rebuild a facility.
Risk scenarios Your church or nonprofit is damaged by a storm, fire or act of vandalism and you lack the resources to finance repairs or rebuilding.
Coverage Property insurance helps churches and nonprofit organizations repair and rebuild their facilities after a damaging event.
If you have property coverage, make sure it is updated and accurate and that it will provide adequate funds for the reconstruction of your building. The majority of commercial buildings, including churches, are undervalued for insurance purposes. Learn more about ensuring that facilities of your church, ministry or nonprofit are properly valued.
Property insurance: code and environmental upgrades
The risk Building and environmental codes have changed significantly since your last church or nonprofit building project.
Risk scenarios When a church or nonprofit rebuilds, repairs or expands, it has to finance costly upgrades required by new codes.
Coverage Property insurance that includes funds for code and environmental upgrades can absorb some of these additional costs.
LIABILITY INSURANCE
The risk An incident occurs on an organization’s property or under its supervision that results in a lawsuit against the church or nonprofit.
Risk scenarios There are numerous types of incidents that fall under the category of church and nonprofit liability. They range from slip-and-fall injuries to assault to accidents on unsafe playgrounds.
Coverage Church and nonprofit liability insurance provide funds to for a legal defense against a wide variety of lawsuits. Policies are not uniform, so organizations should have a clear understanding of what their insurance covers. In addition, your particular organization may have specific liability protection needs.
financial bonding insurance
The risk Theft from employees or volunteers; robbery and other crime-based monetary losses.
Risk scenarios Balance sheet irregularities are investigated and lead to an employee who admits stealing from your church or nonprofit.
Coverage Financial bonding insurance can help churches and nonprofits recoup financial losses that result from insider theft.
Learn more about fraud, embezzlement and other threats to church and nonprofit finances.
CYBER LIABILITY COVERAGE
The risk Cyber attacks steal personal information of members or donors.
Risk scenarios An unauthorized person illegally accesses private data of members of the congregation and sells it – or threatens to sell it – online.
Coverage Cyber liability coverage provides funds to notify people whose data may have been compromised. It also provides funds for legal defense and access to experts who can guide you.
liability insurance: leadership, volunteer and board member protection
The risk Lawsuits against board members, leadership, church officers and volunteers.
Risk scenarios Someone who alleges wrongdoing on the part of the church sues individual members of the congregation and/or leaders.
Coverage Liability insurance protects leaders’ personal assets from being pulled into a lawsuit and provides funds for legal defense.
business contents insurance
The risk A church or nonprofit building has been damaged, but there is also significant damage to interior contents.
Risk scenarios Business equipment, a historic pipe organ, sound equipment and computer hardware are damaged along with the building.
Coverage Property insurance that includes coverage for business contents can help absorb the cost of replacing hardware, furniture and other equipment.
business interruption insurance
The risk Unforeseeable events cause a church or nonprofit to lose critical revenue.
Risk scenarios Damage to a facility, environmental contamination or other property loss-related events cause operating revenues to drop.
Coverage Business interruption insurance can help churches and nonprofits weather a financial storm and continue to operate during short-term crises.
LIABILITY insurance: FREEDOM OF RELIGIOUS EXPRESSION
The risk A potential member of a church objects to doctrine-based membership requirements.
Risk scenarios This individual files a lawsuit against the church, alleging discrimination based on the membership requirements.
Coverage Freedom of Religious Expression Liability Insurance helps fund the church’s legal defense of its First Amendment rights.
LIABILITY INSURANCE: MEDICAL EXPENSES
The risk A student who is not a member of the church is injured during a youth event.
Risk scenarios The injury results in medical bills and parents ask the church to pay.
Coverage Medical Expense liability insurance provides coverage for accidents that occur on church and nonprofit property. (Note: Most policies exclude sporting events.)
ACTIVE SHOOTER LIABILITY INSURANCE (VIOLENT INCIDENT INSURANCE)
The risk The number of assaults at houses of worship and workplaces is increasing. An assailant could attack a church or nonprofit, resulting in serious injuries or death.
Risk scenarios An injured person or family member of someone who was killed or injured sues the organization for failure to prevent an attack. Although your organization may have done everything it reasonably could to prevent the attack, you must still defend yourself in court.
Coverage Active shooter liability insurance (Violent Incident Insurance) helps fund an organization’s legal defense against claims of negligence. (Note: We encourage all of our clients to receive professional security training and develop a security plan to minimize the risk of loss of life.) In addition, catastrophic coverage can fund counseling and other needs that result from an attack on your church.
Learn more about physical threats to houses of worship and nonprofit organizations.
Sexual Misconduct Liability insurance
The risk A volunteer or staff member is accused of sexual misconduct.
Risk scenarios An individual sues the church or nonprofit for sexual misconduct in a civil suit. (There could also be government prosecution.)
Coverage Sexual Misconduct Liability insurance provides funding for legal defense so a defendant is properly represented in court.
We encourage all of our clients to receive professional training to prevent sexual misconduct and properly report any incidents that occur. Learn more about sexual misconduct prevention.
professional errors and omissions insurance
The risk A church staff member is accused of professional negligence.
Risk scenarios A pastor or counselor offers family-related advice to a couple. The couple claims the church’s counsel led to a negative impact on their family and sue for professional negligence.
Coverage Professional errors and omissions insurance can provide a legal defense for a church, ministry or nonprofit when it faces accusations of negligence.
EMPLOYMENT PRACTICES INSURANCE
The risk A church staff member is terminated, disciplined or demoted.
Risk scenarios The staff member claims the employer acted improperly or illegally and and files a lawsuit.
Coverage Employment practices insurance provides funding for legal defense in a legal dispute. (Note: We encourage our clients to receive professional human resources training to minimize the risk of litigation.)
student medical insurance
The risk A student or employee of a Christian school is injured as a part of school-related activities.
Risk scenarios Parents or employees demand the school pay resulting medical bills.
Coverage Student accident medical insurance covers students and school employees in the event of injuries related to school activities.
VOLUNTEER ACCIDENT MEDICAL INSURANCE
The risk A volunteer is injured while serving on behalf of a church or nonprofit organization.
Risk scenarios The volunteer demands the organization pay medical bills.
Coverage Volunteer accident medical insurance covers medical expenses of volunteers injured while working on behalf of an organization.
INTERNATIONAL travel, medical & mission trip INSURANCE
When you cross an international border, the rules suddenly change. Everything from health care to civil rights to traffic law now operates under a new sovereign regime. International travel insurance prepares you for challenges you may encounter in a foreign country. Travel insurance can protect from loss resulting from:
Illnesses and injuries
Trip cancellation or interruption
Loss of a passport or wallet
Lost luggage
Emergency evacuation due to a medical condition or crisis
Other factors
Wherever you’re traveling, Ministry Pacific has you covered. Through our subsidiary, MP Global Insurance Solutions, we can meet the international insurance needs of individuals, churches, nonprofits and more.
MP Global provides insurance coverage for international travel and business including:
International travel and medical insurance (individual and group plans) for mission trips, business trips and more.
Health insurance for international visitors to the United States.
Student travel insurance.
Evacuation and repatriation (return home) insurance.
International workers’ compensation insurance.
Foreign liability insurance.
Kidnap and ransom insurance.
Go to MP Global to learn more about international business, nonprofit and travel insurance.