Do Places of Worship Need Church Insurance?

Churches and places of worship provide an essential service to many communities. Not only is it a place where religious services and ceremonies are held, but in many cases, it’s the venue for much-needed outreach programmes, like education, counselling, social activities and community initiatives. Some religious buildings are national landmarks with a rich history dating back generations. Many people think that these places of worship wouldn’t need insurance, but church insurance from Auto & General is essential coverage that is needed to protect the establishment from financial loss following unexpected events.  

What is church insurance, and why is it needed? 

Church insurance is specifically designed to protect churches and other religious establishments, like synagogues, mosques and temples, from financial losses due to risks such as property damage, liability claims, and other incidents. It typically includes coverage for the physical building, its contents, and any activities or events on the property, as well as liability coverage for accidents or injuries that may occur on the premises. It is essential coverage for the church to cover the financial losses arising out of an incident.

What does church insurance cover?

Insurance for churches and ministries typically includes coverage for property damage.. It also includes public liability insurance, which will protect the church against claims of alleged negligence. Additionally, it can include loss of income coverage, which will provide financial protection in case the church is forced to shut down temporarily due to a covered event.

Church insurance in South Africa typically covers a wide range of risks that places of worship may face. Here are some examples of what church insurance covers:

1. Buildings insurance. This protects the building, equipment, and other physical assets of the church from damage caused by covered events, like fire, theft, or natural disasters.

2. Public liability. This protects the church against claims of negligence or other liabilities that may arise. This can include slip and fall accidents or injuries caused by inadequate maintenance. 

3. Business interruption insurance. This coverage provides financial protection in case the church is forced to shut down temporarily due to a covered event.

4. Professional indemnity. This coverage protects the church against claims of professional negligence or errors and omissions.

There could be other risks associated with a place of worship, which is why a detailed risk assessment is advisable. 

What kind of risks do churches and places of worship face?

Places of worship are exposed to several types of risks. Here are some examples of potential risks that could affect these establishments:

• Property damage. Places of worship can be at risk of damage from fires, natural disasters, theft, vandalism, and other incidents.

• Liability. Places of worship can be held liable for accidents or injuries that occur on their property. This can include slip and fall accidents, injuries caused by inadequate maintenance, or injuries caused by criminal activities.

• Business interruption. Places of worship can be forced to close temporarily due to a covered event, such as a fire or natural disaster, resulting in loss of income[1] for those employed by the church. Many churches lost income during COVID restrictions placed on places of worship, for instance.

• Natural Disasters. Places of worship can be at risk of damage from natural disasters such as floods and storms, which could result in costly repair work that, if uninsured, would have to be paid by members of the congregation or devotees. 

It's important for places of worship to assess and understand the potential risks and take out the necessary insurance coverage to protect against them. 

What isn’t covered by church insurance?

A church insurance policy, like any other type of insurance, will have exclusions which are events, actions or circumstances that are specifically excluded from coverage under the policy.

Some examples of typical exclusions in church insurance policies include:

• Damage caused by war or acts of terrorism

• Damage caused by pollution or contamination

• Damage caused by pre-existing conditions or general wear and tear

Auto and General recommends that you review the exclusions from your church insurance. If you feel that any exclusions are unacceptable, we suggest you take out additional coverage for these risks. It would also be advisable to consult with an insurance broker or agent for personalised advice. Our trained team members can help you understand all the exclusions and limitations of a church insurance policy before you sign it.

Get a church insurance quote from Auto & General Insurance

It's important to note that the specific coverage included in church insurance policies will vary depending on the place of worship and the policy itself.  Auto and General Insurance offers business insurance policies for various specialist industries, like churches and places of worship. Contact us to enquire about what church insurance policy you need. Alternatively, apply for a quick quote online, and we will get back to you.