How much does church insurance cost?

Churches and other religious organizations pay an average of $42 per month, or $500 annually, for general liability insurance. This policy is sometimes called public liability insurance.

General liability insurance covers common third-party risks at churches and other religious organizations, such as a visitor who slips on a wet floor at your church and suffers a bodily injury, or accidental damage to a church member's property.

In both cases, general liability insurance coverage would pay for the medical costs and/or legal fees if the third party sues over property damage or personal injury.

It also helps pay for attorney's fees and other legal expenses if someone sues your religious organization over copyright infringement or other advertising injuries, including defamation.

Below is the average general liability policy for churches that buy from Insureon:

Insurance premium: $42 per month
Policy limits: $1 million per occurrence; $2 million aggregate

The per-occurrence limit is the maximum your insurer will pay for a single covered incident, while the aggregate limit is the most the insurer will pay for all insurance claims during the policy period, typically one year.

General liability insurance costs depend on factors such as the coverage limits and deductible you choose, the types of services you offer (daycare, mission trips, etc.), your business income, and any endorsements you select, such as an additional insured and special event insurance.

Learn more about how your insurance premium is calculated and how to save money on your general liability coverage.

Churches and other religious institutions pay an average of $99 per month, or $1,193 per year, for a business owner’s policy.

A business owner's policy, or BOP, bundles general liability coverage with commercial property insurance to cover both third-party risks and your business property. It typically costs less than purchasing each policy separately.

A BOP protects against third-party injuries, property damage, and vandalism. It also covers damage to your church building, such as broken stained glass. Because of its increased coverage and affordability, it’s the policy most often recommended by Insureon’s agents for churches that rent or own a building.

This is the average BOP for churches that buy from Insureon:

Insurance premium: $99 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $1,000

Small churches with low risk are often eligible for a business owner's policy.

Churches and other religious organizations may see higher costs if they choose to add endorsements to their policy. Insurance endorsements, such as business interruption insurance or equipment breakdown coverage, are often recommended to help pay for lost income if a fire or power outage forces your church operations to cease for an extended period of time.

The cost of a business owner's policy is based on many factors, including the value of your church property, where you are located, the number of staff members you have, and your specialty.

Professional liability insurance costs an average of $56 per month, or $674 annually, for nonprofit organizations, including churches. This coverage is also called errors and omissions insurance (E&O insurance).

A professional liability policy covers the cost of lawsuits over claims that your church services were unsatisfactory, negligent, or late.

For instance, if a pastor's counsel caused harm to a church member that resulted in a financial loss, professional liability insurance would cover your legal defense costs, settlement, and other related expenses if the church member sued over professional negligence.

Below is the average professional liability insurance policy for churches that buy from Insureon:

Premium: $56 per month
Policy limits: $1 million per occurrence; $1 million aggregate
Deductible: $1,000

Several factors influence the cost of professional liability insurance, including the types of religious and social services you offer, your claims history, and the policy limits you choose.

As with other types of insurance, you can save money on professional liability coverage by choosing lower limits or a higher deductible.

Reducing your risks also helps you avoid liability claims and keep your premium low. This includes clear communication with church members and thorough documentation of all communications and agreements.

For places of worship, the average cost of workers’ compensation insurance is $60 per month, or $724 annually.

This policy covers medical expenses and lost wages related to employee injuries. It usually includes employer's liability insurance to protect against lawsuits from employees and staff members who get injured or ill on a jobsite.

Religious organizations with employees, such as churches, synagogues, mosques, and temples, typically must purchase workers' comp to comply with state requirements and avoid penalties.

For example, all churches in California, Pennsylvania, and New York must carry workers' comp if they have one or more employees. Florida churches need coverage when they have four or more employees, and coverage is optional in Texas.

Since health insurance plans can deny claims for injuries related to your job, workers' comp coverage is also recommended for independent contractors as a financial safety net and for peace of mind.

The cost of workers' comp depends on several factors, primarily the number of employees and staff members you have and their occupational risks. You can save money on workers' comp coverage by classifying your employees correctly and implementing a risk management plan to avoid work-related injuries and subsequent claims.

Churches and other places of worship pay an average of $141 per month, or $1,696 per year, for commercial auto insurance.

This type of insurance pays for legal costs and medical bills if your church vehicle, such as a van, injures someone or damages their property in an accident. It can also cover vehicle theft, vandalism, and weather damage.

Most states require commercial auto insurance for vehicles owned by a religious organization. For personal, rented, and leased vehicles used for work purposes, look to hired and non-owned auto insurance (HNOA) instead.

The cost of commercial auto insurance depends on several factors, including your policy limits, the number and value of your vehicles, the driving records of anyone permitted to drive, and any additional coverage options you choose, such as additional insured endorsements or comprehensive coverage.

The average premium for directors and officers (D&O) insurance purchased by churches and other religious organizations is $71 per month, or $854 annually.

This coverage protects your church leaders from legal costs related to mismanagement of funds, failure to abide by regulations, or falling short when performing official duties.

Some religious leaders may request a D&O insurance policy before they'll agree to join your church or other religious institute. Even if it's not requested, it's still highly recommended to purchase this policy for the financial protection it will provide to your board of directors and officers.

The cost of directors and officers insurance is mostly driven by the impact your board's decisions could have on someone else's finances. Additional factors that will affect your premium include the number of officers and board of directors you have, your claims history, and the coverage limits and deductible you choose.

Directors and officers insurance coverage does have its exclusions, such as harassment or sexual misconduct claims.

For protection against these types of claims, you can bundle your D&O coverage with employment practices liability insurance (EPLI), another type of management liability insurance. You can often get a discount by purchasing these two types of coverages together versus separately.

Nonprofits, including religious organizations, pay an average of $126 per month, or $1,508 annually, for a combined package of EPLI and D&O insurance.

EPLI coverage pays for your attorney's fees and other legal costs if a church employee sues over wrongful termination, discrimination, or another violation of employee rights.

When determining the cost of EPLI, insurance companies will consider several factors. This includes the number of employees and staff members you have at your religious organization, your hiring practices, and your employee turnover rate.