Have you ever watched your youth pastor pouring baby oil on a slip and slide and thought, “Maybe they should not be doing that”? That is exactly how I opened this conversation with John Lyons from Insurance One Agency, and the stories he shared about church insurance claims were equal parts funny and terrifying. This is a topic most pastors never think about until something goes wrong, and by then it is usually too late.
Why Church Insurance Matters More Than You Think
John Lyons has spent years working with churches on their insurance and risk management. He has seen it all: lawsuits, injuries on church property, vehicle accidents during youth group outings, and situations that could have been completely avoided with basic planning.
“Most pastors do not think about insurance until they get a letter from an attorney,” John told me. “And by that point, you are in reactive mode. The goal is to set things up correctly before anything happens so your church is protected.”
Real Church Insurance Horror Stories
John shared several real scenarios he has encountered in his work with churches. I will not use the actual church names, but the stories are eye-opening:
- The slip and slide incident. A church youth group set up a slip and slide at a summer event. A teenager got hurt, and the family sued. The church’s insurance did not fully cover the claim because they had not disclosed that they were running recreational activities. The church ended up paying tens of thousands of dollars out of pocket.
- The van accident. A church volunteer was driving a 15-passenger van full of teenagers to a retreat. There was an accident. The church did not have proper commercial vehicle insurance, and the volunteer’s personal auto policy did not cover church-related trips. The resulting lawsuit nearly bankrupted the church.
- The counseling claim. A pastor provided marriage counseling to a couple, and things went badly. One of the individuals accused the pastor of malpractice and filed a lawsuit. The church did not carry professional liability coverage for counseling, leaving them exposed.
These are not extreme edge cases. John said variations of these stories happen to churches across the country every year. The common thread is that the churches thought it would never happen to them.
What Every Church Needs to Know About Insurance
John broke down the key areas where churches need coverage:
- General liability. This covers injuries that happen on your property, like someone tripping in the parking lot or a child getting hurt on the playground. Every church needs this.
- Professional liability. If your pastors provide counseling, you need coverage for that. Even well-intentioned advice can lead to a claim if things go wrong.
- Commercial auto. If your church owns vehicles or regularly uses personal vehicles for church activities, you need proper auto coverage. Personal auto policies typically exclude church-related use.
- Workers’ compensation. If you have paid staff, most states require workers’ comp. Even if your state does not require it, it is wise to have it.
- Directors and officers coverage. This protects your church board and leadership from lawsuits related to their decisions as leaders of the organization.
- Sexual misconduct coverage. This is unfortunately necessary in today’s world. Having proper policies, background checks, and coverage in place protects both your congregation and your church.
How to Manage Risk Without Being Paranoid
John was quick to say that the goal is not to stop doing ministry out of fear. The goal is to do ministry wisely. Here are some practical risk management steps he recommends:
- Run background checks on every volunteer who works with children or youth. No exceptions. This is your most important safeguard.
- Have a two-adult rule. No adult should ever be alone with a minor in a church setting. Always have at least two unrelated adults present.
- Document everything. If someone gets hurt on your property, document what happened, when it happened, and what steps you took in response. This documentation is critical if a claim is filed.
- Review your insurance annually. Churches change. You might add a new building, start a new program, or hire new staff. Your insurance needs to reflect your current reality, not what you were doing three years ago.
- Talk to a specialist. General insurance agents may not understand the unique risks churches face. Work with someone like John who specializes in church and nonprofit insurance.
Why This Matters for Growing Churches
If your church is growing, and especially if you are bringing in new visitors consistently through digital marketing, your risk profile is changing. More people on campus means more potential for incidents. More programs means more activities that need coverage. Growth is great, but it needs to come with a corresponding upgrade to your risk management.
Final Thought
Church insurance is not glamorous, but it is essential. One uninsured incident can undo years of ministry. Take an hour this week to review your church’s insurance policy. Make sure you have the coverage you need. And if you are not sure, reach out to a specialist like John Lyons at Insurance One Agency. His email is jlyons@insuranceoneagency.com.
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