THURSDAY, AUGUST 26, 2021
Churches serve important spiritual and relief needs in their communities. Often, churches operate as non-profits. However, this does not mean that they don’t have business expenses.
Management of a church often requires the same business acumen of other institutions. Fund distribution and asset management requires care, attention and protection. Most churches carry a degree of business insurance to help them protect their assets.
Insurance for Church Offices
Many churches have administrative establishments to help them manage various needs. Therefore, churches should carry appropriate non-profit business insurance. Some of the following policies may help secure the church:
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Property Coverage: What if a fire, theft or other hazard affects the church? The church may lose data, operational equipment, and valuable theological items. Property coverage might compensate the church to replace the lost items.
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Professional Liability Insurance: Everyone makes mistakes, even the most well-intentioned workers. Professional liability coverage can help a church if one of its employees makes a mistake that harms others. It might protect the church from cases of physical or financial harm. Always protect all those who work in your establishment. Ask if your insurance offers special coverage from volunteers.
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Directors and Officers Insurance: Like church employees, directors, trustees and other managers can make mistakes. Directors and officers (D&O) insurance can extend professional coverage to these individuals. It might protect them in cases of financial harm or legal action that threatens the church.
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Cyber Liability Insurance: Many churches use networks to manage and store important data. This can range from financial records to private member information. Hazards ranging from catastrophic system failures to hacks and ransomware may strike church systems, regardless of preventative measures. Cyber liability insurance can help churches isolate, repair and prevent future cyber damages.
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Employee Benefits: Churches often hire full-time administrative and pastoral employees to manage operations. They may have to provide certain benefits, by law, to these employees. For example, many employers have to provide health insurance and workers’ compensation.
After buying insurance, church offices should also do what they can to reduce insurance risks in their administrative positions. Best practices may include:
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Implementing vetting, training and oversight of all officers.
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Securing sensitive church assets. Locking away cash funds or items of value may help reduce theft risks.
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Installing security systems for both physical and covert threats, like cyber risks.
While this is not a comprehensive list of the ways to insure or protect your church offices, it is a good place to start. The right coverage can help you protect the church’s reserve assets.
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It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional
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