By MMBB Financial Planning Specialist Rev. James R. Cook, CFP®, RICP®
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Insurance plays a vital role in helping churches care well for their people and resources. It’s not about expecting the worst; it’s about good stewardship and ensuring the ministry can continue even when something unexpected happens.
No two churches are alike. A small congregation that meets on Sundays and offers a few programs will have very different needs than a multi site church with dozens of staff members, vehicles, and programming every day of the week. The right insurance plan depends upon a religious organization’s size, activities, and location. We share the major types of insurance churches should consider, but this is not an exhaustive list.
1. General Liability Insurance
General liability insurance is the backbone of most church insurance programs because houses of worship are public spaces. This essential coverage protects against claims of bodily injury or property damage that occur on church property or during church sponsored activities. Common examples of mishaps include slips and falls, injuries during services or events, or damage to someone else’s property.1
2. Property Coverage
Property insurance covers church owned buildings and the contents inside them, such as furniture, equipment, and supplies. Many churches choose coverage based on replacement cost (the price tag to rebuild or replace today) over actual cash value (replacement cost minus depreciation) to avoid being underinsured after a loss. 1
3. Workers’ Compensation Insurance
Most states require even small churches with paid employees to carry workers’ compensation insurance. This coverage helps pay for medical expenses and lost wages if an employee is hurt at work or becomes ill because of their job. It is a critical safeguard for employees and the organization.
4. Directors and Officers (D&O) Liability Coverage
Church assets are not the only funds that need protection. If anyone files claims stemming from employment practices, governance issues, or alleged mismanagement of church funds, leaders’ personal funds may be at risk. D&O insurance shields pastors, board members, and other leaders from personal liability for decisions they make for the church.
5. Sexual Misconduct Liability Insurance
Sexual misconduct liability insurance provides coverage for lawsuits alleging abuse, molestation, or inappropriate conduct involving staff, clergy, or volunteers. This coverage is critical for churches because even unsubstantiated allegations can destroy an organization’s finances and reputation. Sexual misconduct insurance should work alongside strong safety policies, background checks, training, and reporting procedures to reinforce a church’s commitment to security and responsiveness.
6. Non Owned and Hired Auto Coverage
Even if a church doesn’t own vehicles, it may still face auto related risks. Non owned and hired auto liability safeguards a religious organization when staff or volunteers use their personal vehicles for church business, such as running errands or driving to meetings.
7. Special Event Insurance
Many churches host fundraisers, festivals, concerts, or community events. Special event insurance provides temporary coverage for these activities, especially when attendance is high or activities fall outside normal church operations.
The size and frequency of your religious organization’s programs and activities play a role in determining coverage needs. We’ll list some additional types of insurance that may or may not be relevant to your church and address specific risks that may not be fully covered elsewhere.
A good starting point is to assess your church’s programs, staffing, facilities, and activities. Insurance policies should be reviewed annually and updated as ministries and church-owned facilities grow or change.
Working with a church insurance specialist, a professional experienced in insuring religious organizations, is useful in determining what type of insurance your church requires.
Insurance doesn’t replace good governance, strong policies, or wise leadership—but it supports them. Thoughtful coverage helps protect people, property, and the mission itself. By viewing insurance as part of faithful stewardship, churches can focus less on “what if” and more on serving their congregations and communities with confidence.
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Translations of any materials into languages other than English are intended solely as a convenience to the non-English-reading public. We have attempted to provide an accurate translation of the original material in English, but due to the nuances in translating to a foreign language, slight differences may exist.
Las traducciones de cualquier material a idiomas que no sean el inglés son para la conveniencia de aquellos que no leen inglés. Hemos intentado proporcionar una traducción precisa del material original en inglés, pero debido a las diferencias de la traducción a un idioma extranjero, pueden existir ligeras diferencias.
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