Pastor Steve loved his role at his Midland church, guiding his congregation through life’s ups and downs. One day, a member reached out for help, seeking counseling for a difficult time they were facing. Pastor Steve was happy to help, offering his guidance and support. He spent time working with the member as the two of them sorted through the issues at hand. In most minds, it would have been seen as a success.
A few months later, Steve was stunned to find out that this congregant had filed a lawsuit against the church, claiming emotional harm from their sessions. Steve assumed their church’s general liability insurance would cover them—but he was wrong. His policy didn’t include professional liability coverage. This left not only the church facing the lawsuit, but himself as well. And all of this was happening without the help they’d expected from insurance.
Like Pastor Steve’s church, many Texas churches are shocked to discover that their insurance has unexpected exclusions or limitations that leave them financially vulnerable. When good Texans like Steve learn of these issues, they always want to know what else could trap them. Let’s look at three common exclusions that every church should know about and how to protect against them.
Counseling and Pastoral Care Liability Exclusion
After being blindsided by this lawsuit, Pastor Steve dove into the details of his church’s policy. He found out that while general liability policies are great for third party claims of bodily injury or property damage, they are not so great at covering other things. Counseling or pastoral care services are not covered on a general liability insurance policy for most Texas churches. Even though Steve thought they had complete liability coverage from their insurance company, general liability policies exclude these services leaving pastors and churches at risk if a claim is made.
For churches like Steve’s, offering counseling is a meaningful way to support the community, but it also opens the door to potential lawsuits. If a congregant claims harm—whether emotional injury or otherwise—during or after a counseling session, general liability alone likely won’t cut it. Adding professional liability coverage can protect against these specific claims related to counseling and pastoral care. And more importantly, they can cover the costs of the law firm to defend both the church and the pastor. This insurance coverage would have helped Pastor Steve’s church handle the lawsuit and related expenses, rather than paying out of pocket.
Sexual Abuse And Molestation Exclusions
While looking over his church’s policy, Pastor Steve also learned about another serious exclusion general liability protection—sexual abuse and molestation liability. Many churches assume they have this protection through either professional or general liability, but most policies even exclude it. Without this specific type of coverage, churches face major financial and reputational risks if allegations of abuse arise.
Texas churches with children’s ministries, youth programs, or outreach activities are at a higher risk for these types of claims. Without the proper coverage, one accusation can lead to overwhelming legal expenses, settlements, and damage to the church’s reputation. Adding this coverage shows the church’s commitment to a safe environment for its congregation and helps protect the church from the financial losses of a claim. For Pastor Steve’s church, knowing they could add abuse liability coverage provided peace of mind that they would be prepared if any situation like this ever arose.
Hail Damage Exclusions
As Pastor Steve continued digging through their policy, he noticed something else missing—coverage for roof damage due to hail damage. Texas churches often have large rooflines on their property. They also have other structures to protect such as playgrounds, sports equipment, fences, or large outdoor signs. Many standard property policies are now limiting coverage for damage to church property due to hail if not eliminating it altogether through large deductibles. This can leave the church to pay out-of-pocket to repair or replace damage to property after catastrophic losses due to the frequent Texas hail storms.
Steve’s church had a large roof, playground, and fencing around the church property. The cost to repair or replace these after a storm could leave them reeling due to the size of the financial losses associated with them. Having adequate insurance coverage for church property is a must have for most. The prices have escalated and some large churches have made the choice to self-insure. For churches like Steve’s, a reasonable church property insurance policy makes a big difference in avoiding surprise expenses that strain the church’s budget.
How to Address These Exclusions with Customized Coverage
Pastor Steve’s experience taught him the importance of looking beyond the basics of general liability and property insurance. By working with an experienced church insurance specialist, he was able to assess his church’s needs and find options that covered these unexpected exclusions or limitations. A specialist can help churches like Steve’s add professional liability for counseling, abuse liability, and comprehensive property coverage, among other options.
For Texas churches, finding the right fit means more than just signing up for a standard insurance policy. With the help of an expert, churches can customize their insurance to cover what truly matters to them, making sure they aren’t left with surprise costs when they need help the most.
Protecting Your Church with True Texas Church Insurance
In the end, Pastor Steve learned a valuable lesson about protecting his Midland church. Unexpected exclusions and limitations can leave a church exposed to financial risks and legal challenges, as Steve’s church found out. True Texas Church Insurance, offered by Insurance For Texans, provides churches with customized coverage solutions to fit their specific needs and ministries. Our experienced church insurance agents understand Texas churches and have worked with hundreds of congregations across the state to create tailored insurance plans that address unique challenges.
Click the button below to connect with an insurance specialist who can help your church review its current policy and protect against these unexpected gaps.