A small church outside Waco had never worried much about insurance. It just didn't seem necessary outside of town, and they didn't have great experience with insurance companies anyway. The members worked hard to keep the building in good shape, and they had always handled any problems that came up.
One Sunday morning, the pastor arrived early to find the front door forced open. Things became worse as he stepped inside. The sound system was gone. Office drawers had been pulled open, and donation records were missing.
The church had been hit by thieves.
After initially surveying the scene, the church leaders thought they had a handle on it. The cost of replacing stolen equipment and fixing the property damage began stacking up, but they felt they could handle it.
Then came the bad news. When they reported the incident to the police, those donation records became a problem. Not having church insurance coverage meant they had to handle reporting this information to credit bureaus and trying to repair reputational damage to unsuspecting families.
Texas law doesn’t require churches to have even essential coverage, but going without it can be a costly mistake. The potential risks go beyond theft. Storms, accidents, and even lawsuits can put a church in financial trouble. Here’s why every Texas church needs adequate protection before something goes wrong.
Theft was only the beginning for this Waco church. A few months later, a powerful hail storm rolled through Central Texas, extensively damaging shingles causing water leaks inside the sanctuary. This second financial loss in a few months proved to be expensive.
Texas weather is unpredictable. Hailstorms, tornadoes, and hurricanes cause serious damage every year. When a storm hits, churches can file an insurance claim and get repairs started if they have property coverage. But those without this type of coverage, they must find the money themselves.
The small church outside Waco had to rely on donations and emergency fundraising to cover the rehabilitation costs for their building. It took months before repairs were done. If they had the right property insurance, they could have made repairs quickly and kept their focus on their congregation.
One Sunday, a woman at another Waco church tripped on a slick spot in the hallway. She fell hard, breaking her wrist. She didn’t want to sue, but after hospital bills and weeks of missed work, she felt like she had no choice since they hadn't put a sign up in the hallway.
Churches welcome people of all ages, and accidents happen. Someone could slip in the parking lot, fall on the stairs, or get hurt in the nursery. Any of these can result in a bodily injury claim against a church's general liability coverage.
If the church has proper liability insurance, medical costs and legal defense fees are covered. Without it, those expenses could come straight out of the church’s budget. And just defending those legal claims isn't cheap.
For the Waco church, the fall led to a painful financial decision. They had to pull money from other programs to cover defense costs and a settlement. It was another hard lesson in why adequate insurance coverage matters for Texas churches.
Churches can also face leadership challenges as well. If a former staff member claims they were wrongfully let go, threatening legal action isn't uncommon. Even in Texas.
Many church pastors provide counseling. This is another place where legal liability can show up if a member thinks that they have been given bad advice which led to a particularly bad situation.
Many church boards never think they will be sued, but allegations of misconduct in our current legal landscape can create costs that can spiral out of control. Church leaders make tough decisions about money, hiring, and operations. Sometimes, those decisions lead to legal disputes.
Texas churches need to look at their liability coverage from many angles including Directors & Officers insurance, professional liability insurance, and workers comp insurance. These additional liability insurance options beyond general liability can be put in place for small costs and provide essential protection to your church budget. Legal protection from potential claims will protect your church and its leaders from the common risks that show up all across this state.
Even good churches can face false accusations. The news cycles have been littered with allegations of misconduct over the last few years. There may be no proof, but that doesn't stop rumors from spreading and damage being done to the reputation of the church. Legal protection for these claims, even when false, is important to your church's financial stability.
Most standard church insurance policies do not include coverage for abuse and sexual misconduct liability claims unless the insurance provider includes an endorsement for it. This means that if an accusation happens, the church could be responsible for all legal costs. Whether the claim is true or false, fighting it in court is expensive.
Having a peace of mind is important to being able to focus on helping the community and congregation. Having a discussion with an experienced insurance agent that understands Texas churches can bridge the gap in a cost effective way.
The small church outside Waco thought they could handle problems as they came, but the unexpected events proved them wrong. First the break-in, then the storm. The financial struggle cannot always be predicted, but not having an insurance plan for it is very shortsighted financially given our volatile weather.
Texas doesn’t have legal requirements for churches to have insurance, but without it your church is left to figure things out on their own when disaster strikes. Storm damage, liability claims, leadership disputes, abuse allegations, and theft are all real threats that can drain a church’s budget.
True Texas Church Insurance is a program built and offered by Insurance For Texans. It is designed to help churches protect their church buildings, pastoral leadership, and unique ministries from these risks. The church insurance experts will ask you questions and help you formulate a church coverage plan for your risk of incidents.
Click the button below to connect with a church insurance specialist today and make sure your church is covered before disaster strikes.