The Insurance for Texans Blog

Extra Protection for Churches: How an Umbrella Policy Can Save the Day

Written by Amanda Minter | Aug 13, 2024 9:56:58 PM

Stephen was deeply concerned. A neighboring church in San Antonio had recently hosted a community event with bounce houses for the kids, and everything was going smoothly until one of the children got hurt. The incident spiraled into a costly lawsuit, draining the church’s resources. Now, as Stephen planned a similar event at his own church, he couldn’t shake the worry: Could this happen to us? And more importantly, Is there a way to protect our church from such financial devastation?

After speaking with his church insurance agent at Insurance For Texans, Stephen learned about an umbrella policy that his church could buy. It is an additional layer of protection for the insurance coverages that they already have that could save his church from the kind of financial burden that crippled his neighbor’s congregation. This revelation came just in time, but it made Stephen realize how easily such risks could be overlooked without the right information.

Overview of Liability Insurance Needs for Texas Churches

For churches in Texas, having adequate liability protection is more important than ever. With the increasing number of lawsuits targeting churches, religious and nonprofit organizations, it's essential to have adequate coverage that protects against various risks. General Liability, Directors, Officers and Trustees Liability, and Employment Practices Liability Insurance are some of the key policies that every church should consider. These coverages help shield churches from legal liability claims that could arise from a wide range of incidents. It is easy to think about accidents on church property, but it can also address allegations of misconduct or even wrongful termination.

In today’s litigious environment, specific coverages like Sexual Misconduct Liability and Religious Counseling Services Liability are also becoming increasingly relevant. These policies provide additional protection tailored to the unique risks that churches face, ensuring that they are well-prepared to handle any legal challenges that come their way.

General Liability Coverage

General Liability coverage is the cornerstone of any church insurance policy. It protects against bodily injury, property damage, and advertising injuries that may occur during church events or on church property. This type of coverage is vital for mitigating the costs associated with lawsuits and medical expenses that could arise from incidents like slips and falls or property damage. This means that you've transferred the risk of payment for a personal injury claim away from your church and over to the insurance company.

Additionally, General Liability insurance is often a requirement for churches to enter into leases and contracts, ensuring that they can continue their operations without interruption. Without this coverage, a single lawsuit could have devastating financial consequences for a church or religious organization.

Commercial Auto Liability Coverage

For churches that operate vehicles, such as buses or vans, Commercial Auto Insurance is a must. This coverage protects the church against damages and injuries resulting from accidents involving church-owned vehicles. Whether it’s a church bus taking children to a summer camp or picking up folks to attend a church event, Commercial Auto Liability coverage ensures that the church is protected from the financial fallout of an accident.

Other Liability Coverage

Beyond General Liability and Commercial Auto Liability Insurance, there are other critical additional coverages that Texas churches should consider. Counseling Acts Liability, Pastoral Liability, and Sexual Acts Liability are essential for protecting the church and its members from various claims. These coverages are particularly important for ministries that offer counseling services or that have had past incidents of abuse or misconduct. Having adequate insurance for these areas is important to maintaining the church’s reputation and ensuring that it can continue to serve its community without the fear of financial ruin.

Understanding Umbrella Policies

An umbrella policy is an additional layer of liability coverage that goes beyond the limits of your existing insurance policies. It’s designed to protect against the unexpected—those rare but devastating incidents that could otherwise bankrupt a church. Think of an umbrella insurance policy as being there for you on a rainy day when the unthinkable happens to your church. 

While it can be applied in many other situations, umbrella insurance policies typically cover serious accidents, injuries on church property, and child-related incidents, providing an extra cushion of protection when your standard liability limits are exhausted. This means that if your General Liability policy covers up to $1 million, an umbrella policy could provide an additional $1 million or more in coverage, depending on your needs. This is peace of mind that church leaders crave when thinking about the financial consequences of legal liability. Its purpose is to protect the church from unexpected liabilities, such as large medical bills or court-awarded damages, which could arise from incidents like the one Stephen witnessed at the neighboring church.

Remember, this extra coverage can apply to various types of insurance coverage, including General Liability, Directors & Officers Liability, Counseling Liability, and even Sexual Misconduct Liability, provided that the underlying coverage exists. Without this additional layer of protection, a church could find itself struggling to cover the legal defense costs of a major lawsuit. Nevermind a judgement that could occur as a result.

Why Does Your Church Need an Umbrella Policy?

Churches need an umbrella policy because it offers increased liability coverage that goes beyond standard insurance limits or event policies. In an era where lawsuits can stem from almost any incident, having this additional protection is vital to protect your church's financial future. One bad night at the special event that your church throws every year can cause grave consequences. This was the proverbial straw that broke the camel's back for Stephen. For churches that host community events or offer extensive services to their congregations, an umbrella policy provides peace of mind, knowing that they are covered for the unexpected.

How To Get an Umbrella Policy for Texas Churches

Obtaining an umbrella policy for your Texas church is straightforward, especially with the help of True Texas Church Insurance. By assessing your church’s specific needs and risks, an experienced insurance agent can provide a quote that reflects the level of coverage required to protect your church effectively. Our experienced church specialists can help you understand why you would need an umbrella policy for your church and how much it would cost. The bottom line is that the broader coverage provided by an umbrella policy ensures that your church is protected from financial devastation, allowing you to focus on your mission without the constant worry of what might go wrong.

Working with Insurance For Texans to Get Coverage

Insurance For Texans specializes in helping Texas churches protect their future with customized insurance plans. Our experienced church insurance specialists understand the unique needs of Texas churches and will work with you to ensure that your policy coverage matches your ministries and activities.

True Texas Church Insurance is available exclusively through Insurance For Texans, where we are committed to finding the right coverage for your church at the best price. By working with us, you can rest assured that your church’s needs are being met by experts who understand the complexities of the insurance marketplace.

Click the button below to learn how True Texas Church Insurance can provide the extra protection your church needs with an umbrella policy.