Churches face many perils of property damage and liability claims that are both common to the world of commercial insurance and unique in the way of exposures. Religious institutions can suffer losses caused by fire or theft, or liability claims based on a slip and fall, and at the same time, must cope with an exposure to loss based on a one-hundred year old stone building that can have no economically realistic replacement cost value, or a liability exposure that can combine the most hazardous facets of a church, a school, and quite possibly, a cemetery.

Fire is considered to be the greatest cause of property losses for religious institutions; this includes arson losses that are set not only by vandals or juveniles but also by burglars and thieves trying to conceal evidence of their crimes. Conditions that are particular to churches, such as accessible but frequently unoccupied buildings, large open spaces, and unique architectural features, contribute mightily to fire losses. And, fire losses are not confined to a building that may be an example of unique and stately architecture; the contents of churches, such as organs, statues, and religious artifacts, are also unique objects that can be lost to a fire.

Lightning is another frequent cause of loss to churches. The architectural features that characterize some religious buildings, such as bell towers and clock towers, steeples, domes, and cupolas, act as frequent targets for lightning strikes. Such strikes can damage not only the building but also interior electrical apparatus, such as a public address systems, computers, or electronic musical instruments.

Burglaries and theft account for a significant percentage of total dollar property losses. Doors are often left open at night for the congregation, and thieves can take advantage of the many secluded areas in a church, hiding until services are over and the building is empty. These security problems, combined with easy access to cash in the poor box, precious metals, statuary, and fine arts make religious institutions extremely vulnerable to theft losses.

Slips and falls on stairs, walkways, or parking lots represent the most common liability exposure for a church. However, the exposure is magnified many times if the religious institution runs a school or a daycare center as part of its daily operations. Church-sponsored athletic contests and field trips in church-owned buses can lead to serious injuries with resultant lawsuits. Religious institutions also have the added liability exposure of damages resulting from personal counseling, if such services are provided. And, sexual molestation and other abuse charges are other liability issues that seem to bedevil churches.

Some other unique exposures affecting churches include loss of school tuition and fees, rain insurance for event cancellations, liquor liability for wedding receptions or other gatherings held on church premises, and the hiring of off-duty policemen for traffic control for church services.

In summary, fire, crime, and personal injuries pose definite dangers for religious institutions. These dangers make religious institutions stand out as risks that call for special programs.

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Special Programs

In recognition of the unique exposures that churches face, many insurance companies have developed special programs for religious institutions that use the ISO standard forms but make certain modifications to the coverages; other insurers draft and use their own coverage forms. There is no rule that prevents religious institutions from having insurance protection written on the ISO property and general liability coverage forms. However, there are limitations on ISO forms for such coverages as valuable papers or dwelling contents that are handled more generously on special church program policies. Furthermore, a special church policy can develop a premium that not only is affordable for the insured, but also properly reflects the loss exposure of valuable and hard to replace items such as paintings, silver, liturgical vestments, and religious documents.