California Church Insurance Policy Information
California Church Insurance. Insurance for churches include specific types of coverage for each particular type of church. Chapel insurance, cathedral insurance, synagogue insurance, and temple insurance are common and usually included in a wider umbrella of a specific church policy. Since church insurance is a specialty insurance type, not many companies offer this coverage.
Churches and other houses of worship conduct religious services for their members. Some provide rental hall operations of their facilities for events such as wedding receptions. Others sponsor sports and athletic teams, events, and programs. There may be extensive youth activities, from occasional Mother’s Day Out programs to full-time preschools, kindergartens, elementary, and/or secondary schools.
Services may be provided for the disabled, handicapped, destitute, or emotionally and mentally impaired, such as a food pantry, Meals on Wheels, job, credit or family counseling. Drug, alcohol, and substance abuse services may be offered. Missionary trips may be sponsored within the U.S. or in foreign countries. Churches and other religious organizations may take on a variety of ministries that are unique and require a separate review. Consider the type of ministry, such as daycare or elementary school, and then review the narrative that would fit that operation.
Companies that insure churches offer both liability and property coverage with specific options that are tailored to the individual church's needs. Churches require unique coverage to protect them from liability in their particular areas of vulnerability. While some policies may include liability and property coverage as part of a standard umbrella, others may require that a church purchase separate endorsements for their California church insurance policies to really protect them from a 360-degree viewpoint.
California church insurance protects your ministry from legal liability with rates as low as $67/mo. Get a fast quote and protect your congregation now.
Types of Coverage for Churches
Around 63 million people attend church each week in the United States, which makes up around one-fifth of the population. Americans put a lot of emphasis on religion, with people who attend church trusting in the church to provide them strength and guidance. However, most churches have assets that they must protect from potential liability, so it is important to have a good church insurance policy in force at all times.
Some types of coverage that might make up your church's individual California church insurance plan include:
- General liability. Most church policies include general liability insurance with basic protection for church attendees, employees of the church, church officials and any staff, as well as people who volunteer for the church. In addition, this type of coverage also handles expenses for injuries that inflicted on third parties if they perform work at the church or on church grounds.
- Pastors and ministers liability coverage. This type of coverage provides insurance against liability for giving spiritual counseling. Some companies may require that the minister or pastor providing counseling services has a degree in divinity or theology.
- Liability for church-sponsored activities. Coverage for liability arising from church-sponsored. If your church is like most, you often host activities such as dinners, picnics, baseball games, or vacation Bible school. This type of insurance ensures that the church is not left with financial responsibility if a person is injured during a church-sponsored event.
- Fire insurance. Churches have the same perils as all other structures, but some more so than other due to the use of candles in ceremonies at the church. If your building or other structure is damaged by fire, fire insurance can help cover the damage up to your limits, minus any deductible.
- Cemetery liability insurance. If you also maintain a cemetery on your church's property, then cemetery liability insurance ensures that any claims for damage or liability brought by the decedent's family are covered.
- Daycare insurance. If your church operates a daycare facility on site, then this type of insurance guards you from the fallout of any claims against your church as a result. This might include failure to provide the specified service, negligent care, or injuries to children enrolled in the program.
- Teacher's liability insurance. If your church is one that operates a parochial skull on its grounds, then this policy provides coverage against liability claims that might result.
- Employee practices coverage. If any employee of the church sues the church for discrimination, wrongful termination, or harassment, this policy helps pay for legal counsel and damages.
- Trustees, officers, and directors coverage. Cover the board of directors, trustees, and church officials from loss due to liability claims with this type of coverage.
- Auto liability insurance. A good commercial insurance policy and a hired or non-owned policy covers accidents resulting on the road in church-owned or privately owned vehicles. The hired auto policy covers private vehicles used for church business.
Protecting the Church's Assets and Property
All of these California church insurance policy types can help ensure that the church does not suffer financial hardship if a claim is brought against it. These policies are different from usually business insurance policies and often must go beyond standard California church insurance coverage to pay claims for loss of tapestries, stained-glass windows, special audio equipment, and more. These coverage types can provide the church compensation if it experiences loss due to theft, vandalism, falling objects, fire, and weather. Flood insurance may need to be purchased separately, especially if your church is located in a flood zone.
Beyond basic liability and personal injury coverage, some other specific endorsements that your church may wish to build into its policy include:
- Utility services interruption coverage. Cover losses related to the loss of utilities with this type of policy. For example, if the church's water pipes burst and damage its interior, then this insurance can pay for repairs.
- Personal property coverage for pastors. If the church houses the pastor, then this insurance covers damage to the pastor's property due to damage in a covered event.
- Equipment breakdown insurance. If the church's computer system, sound system, heating system, or other equipment breaks down, this coverage can kick in and pay for repairs or replacements.
- Personal effects insurance. If church members travel on church business, this policy pays for property losses.
- Inland marine coverage. Your church's property in transit to another location is covered by inland marine insurance.
- Key-person replacement insurance. If a key church director or pastor should pass away, this coverage helps pay recruitment costs for finding a replacement.
- Employee theft. This type of insurance rider covers embezzlement, fraud, and theft by bonded church employees.
Work with a seasoned insurance agent to determine which types of California church insurance your church needs and which endorsements or riders make sense for the church's unique needs.
California Church's Risks & Exposures
Property exposure is high due to the building being unoccupied the majority of the time, which can encourage vandalism or break-ins. Small fires can quickly get out of control when no one is on premises. Regular daily visits to the premises by a member of the clergy or a parishioner can be very helpful in preventing and detecting losses. Ignition sources include electrical wiring, heating, and air conditioning equipment. There may be cooking facilities for community events. While domestic ranges and ovens are generally used and should be supplemented by portable fire extinguishers, any commercial cooking equipment needs to be properly controlled.
Many churches have installed sound systems that are attractive to thieves, as are computers and other office equipment, video devices, and musical instruments. Some churches, particularly older ones, have ornate woodwork, built-in pipe organs, or stained glass windows that may be expensive to replace in the event of a loss. Smoke alarms and burglary alarms are recommended due to the long hours of no occupancy. Gold, silver, and other valuable items may be part of the church statuary and ornamentation. A fine arts policy should be considered because of the limitation in most policies regarding the theft of such items.
Premises liability exposure is moderate due to the large number of visitors to the premises. To prevent slips, trips, or falls, all areas accessible to clients must be well maintained with floor covering in good condition. All public and life safety standards must be met. Stairways, railings, and floor coverings should be in good condition. The number of exits must be sufficient and clearly marked, free of obstacles, with backup lighting in the event of a power outage.
Parking areas should be maintained free of snow and ice. Background checks should be conducted on all individuals, including volunteers, who work with children, youth groups, or other vulnerable members. Any group trips must provide enough leadership to adequately supervise participants. Churches and other religions institutions can pose an attractive nuisance hazard. There should be adequate security after hours to deter trespassers.
Professional liability and counseling exposures are moderate. All individuals should counsel only within their area of expertise and licensure. Maintaining a members' privacy is critical. Counseling should be done in private areas so others cannot overhear confidential conversations.
Workers compensation exposure varies by state. The church may not be required to purchase workers compensation coverage for members of the clergy even if other members of the paid staff may be. However, if the law permits the clergy and other staff to be covered by workers compensation, failure to do so may result in the church being subject to a lawsuit from an injured worker that could close the church.
Ministers may make house calls or visit members in hospitals or nursing homes. Employees can slip and fall, suffer back injuries from lifting, or incur contact dermatitis, lung, and respiratory illness from working with cleaning supplies.
Crime exposures are from employee dishonesty and money and securities. The employee dishonesty coverage should be extended to include volunteers. All collections should be counted by two individuals. Deposits and disbursements should be carried out by two separate persons. Annual audits should be conducted. Deposits should be made on a regular basis. No money should be kept on premises.
Inland marine exposure is from audio-video equipment, computers, fine arts, mobile equipment used for lawn maintenance, musical instruments, and valuable papers and records for charters and donations. Fine arts may include paintings, statuary, or items used for religious services. Items used off premises can be damaged in transit or stolen.
Commercial auto exposure is very high if the church provides any transportation for members, students, faculty, clergy, or visitors. Churches often operate on a shoestring budget and may purchase older buses or vans for transporting groups. It is critical that these vehicles be maintained on a regular basis with all service documented. Drivers must be trained in the proper handling of these larger vehicles and have appropriate licenses. MVRs must be ordered regularly on all drivers, including those who are voluntary.
Car seats must be used as required by state law. Churches depend on volunteers to provide small group transportation, which increases the hired nonownership exposure. Any drivers who are transporting others in their own vehicles on church-related activities must have adequate insurance.
California Economic Data, Regulations & Limits On Commercial Insurance
If you are an entrepreneur and you considering having your operations located in California, it's essential that you have a full understanding about the economy of the state, as well as the regulations and limits that are in place for commercial insurance.
If you are considering opening up a business in the Golden State, you first want to make sure that it is a sound location for your operations. That means that you should understand some key information related to the state's economy, as well as the types of insurance coverages that businesses are legally required to carry.
Economic Trends For Businesses In California
In terms of job creation, the state of California exceeds rate of job growth in the United States; however, as the state's metropolitan areas are reaching employment capacity, job growth is starting to slow. In 2017, the rate of growth was 2.1 percent, which is the slowest rate of growth since 2011; but it is still expected to increase by 1.8 percent by the end of 2018, and 1.2 percent by the end of 2020.
In the month of April, the unemployment rate in California dropped to 4.2 percent, which is a record low. This unemployment rate is expected to remain consistent for the rest of the calendar year; however, it's forecasted that the rate will start to increase in 2020.
The strongest labor market in the state is in the Bay Area, where the unemployment rate was 3.4 percent in 2017. Southern California follows, with an unemployment rate of 4.5 percent in 2017. In the Central Coast region, the rate was 5.4 percent and in the Central Valley, it was 6.6 percent. While the unemployment rate is considered high in these areas, they have decreased dramatically over the last 12 month period.
The industries that are expected to see the most growth in CA include:
- Information Technology
CA Commercial Insurance Regulations And Limits
The California Department of Insurance regulates insurance in the Golden State. In the state of CA, commercial liability insurance is not required; however, since the state does not cap rewards for liability law suits, business owners are wise to invest in this type of coverage. The amount of coverage recommended varies depending on the size of the business and in the industry.
Workers' compensation insurance is the only type of coverage that business owners are required to have. This applies to any organization that employs a salaried or hourly staff, even if that staff only consists of one employee. Furthermore, if an employee is injured or becomes ill as a result of work, business owners must pay for CA workers' comp benefits.
Additional Resources For Non-Profit Insurance
Find useful articles on business insurance for non-profit 501(c)(3) organizations, charities and associations.
- Animal Shelter & Pet Rescue
- Classic & Collector Car Clubs
- Credit Union
- Fraternal Organization
- Labor Union
- Parent Teacher Organization
- Public Administration
- Social Work Services
- Youth Groups
For 501(c) Non-Profits - Directors And Officers Liability Insurance has become an increasingly important policy to have. D&O coverage protects insured directors or officers against claims involving allegations of wrongful acts occurring while performing their duties as such. The insurance is divided into two separate coverages:
Side A coverage reimburses the individual directors and officers for payments made for loss each has incurred because of wrongful acts.
Side B coverage reimburses the corporation for the payments it has made on behalf of the directors or officers themselves.
General Liability is a foundational policy for almost any business. Most companies do not have any control over the final cost of injuries to a person injured because of their operations, products, or services. The person injured may be a young child, a blue-collar worker, a surgeon, or a homeless person.
The cost of the injuries may be comparatively minor or run into the millions of dollars, depending on the person and the extent of his or her injuries. Do you have sufficient assets to pay such a loss?
Commercial general liability insurance is designed to help you protect your assets with three main coverages:
- Coverage A: Bodily Injury and Property Damage Liability
- Coverage B: Personal and Advertising Injury Liability
- Coverage C: Medical Payments
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Computers, Valuable Papers and Records, General Liability, Directors and Officers Liability, Employee Benefits, Professional, Umbrella, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Equipment Breakdown, Flood, Computer Fraud, Forgery, Fine Arts, Musical Instruments, Commercial Articles Floater, Computers, Cyber Liability, Employment-related Practices, Business Auto Liability and Physical Damage and Stop Gap Liability.
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