Protect Your Church with General Liability Insurance
Welcome to the United Methodist Insurance Program’s comprehensive guide to General liability insurance! General liability insurance is one of the key coverages that churches purchase, with claims second only to property coverage. Here’s why general liability coverage is essential for protecting your church, and a few tips for securing sufficient coverage.
What Does General Liability Insurance Cover?
Third-Party Bodily Injury: General liability insurance provides coverage for injuries sustained by visitors or members on your property and legal defense for the church.
Medical Payments: It also offers limited no-fault coverage to pay the medical expenses of visitors and members injured while on your property.
Third-Party Property Damage: Your general liability policy can cover the costs if you accidentally damage someone else’s property.
Reputational Harm: If your church is sued for libel or slander due to statements made by an employee, there is coverage to help with your legal fees.
Advertising Injury: General liability coverage can provide legal defense if you are sued for copyright infringement.
What Does General Liability Insurance Not Cover?
Damage to your property
Work-related injuries to employees
Commercial automobile accidents
Professional liability
Specific exclusions in your policy – read it carefully!
Costs over policy limits
Additional Considerations:
Sub-limits: Certain causes of loss, like premises rented to you or employment practices liability, may have sub-limits.
Occurrence and Aggregate Limits: An occurrence limit is the amount available for any single loss, while the aggregate limit is the total amount of coverage available to pay for all losses in a given policy period.
Cyber Exposure: Many policies have limits on coverage for cyber incidents.
Coverage Recommendations:
The General Council on Finance and Administration (GCFA) recommends $1,000,000 in coverage. You and your agent might decide more is necessary.
For churches with over 500 members, GCFA suggests carrying an additional $1,000,000 in umbrella coverage.
Volunteer Coverage:
Make sure your policy provides sufficient coverage for volunteers!
If volunteers are not covered unless there is negligence on the church’s part, consider finding full coverage for your volunteers through your workers' compensation carrier.
Waivers and hold-harmless agreements can be useful, but you should confirm volunteers have coverage in the event of injury.
General Liability Insurance can protect your church from lawsuits due to bodily injury, property damage, reputational harm, and more. Your ministry deserves exceptional insurance protection, and UMIP is dedicated to safeguarding your people, property, and finances. For personalized guidance or to request a quote, visit United Methodist Insurance Program today.
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