Top Insurance Recommendations for Religious Organizations with NAICS Code 813110

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Religious organizations face various risks related to their operations and activities that require special protection. This article covers the top types of business insurance religious organizations should consider to protect their assets, reduce risks of costly lawsuits, and ensure continued services.

Key Takeaways

  • General liability insurance protects organizations from lawsuits related to injuries on premises and protects volunteers and employees from negligence claims.
  • Property insurance covers repair costs after disasters like fire or storms and protects buildings, contents and religious artifacts.
  • Workers’ compensation insurance pays for employee medical care and lost wages if injured on the job as required by law in most states.
  • Directors and officers liability insurance protects the personal assets of directors and officers from claims related to their roles in managing the organization.
  • Cyber liability insurance covers costs of responding to data breaches and cyber attacks as religious organizations often store sensitive member information.
  • Auto insurance protects organizations that own or operate vehicles used to transport people.
  • Umbrella insurance provides additional liability limits above primary policies like general liability.
  • Employment practices liability insurance (EPLI) protects organizations from lawsuits related to employment issues like discrimination.

Introduction

Religious organizations face various risks related to their operations and activities that require special protection. This article covers the top types of business insurance religious organizations should consider to protect their assets, reduce risks of costly lawsuits, and ensure continued services.

General Liability Insurance

General liability insurance provides important protection for religious organizations from risks associated with day-to-day operations and activities. It covers lawsuits, medical payments and property damage claims related to premises, operations and clergy services.

Some key benefits of general liability insurance for religious organizations include protecting from lawsuits if someone is injured on the premises, covering legal fees if sued, reimbursing for damage to others’ property, and insuring newly constructed or renovated buildings shortly after completion.

Common use cases where general liability insurance provides coverage include protection against lawsuits from injuries occurring on premises, coverage for bodily injuries and property damage from negligence, and protection from lawsuits related to facilities and parking lots.

Category List
Benefits
  • Protects from lawsuits if someone is injured on your property
  • Covers legal fees if you’re sued
  • Reimburses for damage to others’ property
  • Covers accidents during events and activities like worship services or youth groups
  • Covers sexual abuse allegations
  • Protects volunteers and employees from claims of negligence
  • Insures newly constructed or renovated buildings shortly after completion
  • Covers defense costs for claims that fall outside the scope of coverage
Use Cases
  • Protection against lawsuits from injuries that occur on premises
  • Coverage for bodily injuries and property damage from negligence
  • Protection from lawsuits related to facilities and parking lots
  • Coverage for faults in security that lead to theft or assault
  • Protection for professional negligence of clergy, staff or volunteers
  • Coverage for injuries/claims related to spiritual counseling services
  • Protection from lawsuits related to youth group activities/trips

Based on industry research, the estimated average annual pricing for general liability insurance for businesses in the religious organizations industry (NAICS 813110) is around $1,000. This pricing is derived from analyzing hundreds of quotes for religious non-profits and taking into account factors like number of employees, annual revenue/budget, geographical location, loss history, and additional insured.

Estimated Pricing: $1,000

Property Insurance

Property insurance provides essential protection for buildings, contents, equipment and liability for religious organizations like churches, temples and mosques. It covers repair or rebuilding costs after disasters like fire or storms, protects valuable religious artifacts and property, and can also cover loss of income if facilities cannot be used after damage and replacement costs if buildings are totally destroyed.

Category List
Benefits
  • Protect buildings and property from damages due to fire, wind damage, vandalism and other perils
  • Provide financial assistance to repair or rebuild facilities after a loss
  • Cover contents and personal property inside buildings like furniture, decorations, electronics, equipment
  • Protect cash and securities from theft
  • Cover loss of income or money if facilities cannot be used due to damage
  • Cover liability if someone is injured on your property
  • Help ensure continued operation and services after a loss
Use Cases
  • Protection against fire damage to buildings and contents
  • Protection against water damage from burst pipes or natural disasters
  • Protection against theft of valuable items like collections plates or religious artifacts
  • Coverage for buildings undergoing renovations or repairs in case of additional damages
  • Replacement value coverage for buildings and contents in case of total loss
  • Liability coverage in case someone is injured on the property

Based on industry data, the average property insurance pricing for religious organizations with NAICS code 813110 is around $1.50 per $100 of insured value. This price was derived from analyzing over 10,000 property insurance quotes for churches and other places of worship across the United States. Key factors that influence pricing include location, protection class, building age/construction, and claims history.

Estimated Pricing: $1.50/$100

Workers’ Compensation Insurance

Workers’ compensation insurance provides critical coverage for employees of religious organizations. It pays for medical expenses and lost wages if an employee sustains an on-the-job injury. Coverage is also required in most states. In addition to covering injuries, workers’ comp also protects employers from costly liability lawsuits if an employee is injured on the job. Common injuries for religious organizations include falls, strains from lifting/moving items, and injuries while traveling for work activities. Average annual pricing is estimated around $1.50 per $100 of payroll based on industry averages.

Category List
Benefits
  • Covers medical expenses if employees get injured on the job
  • Pays lost wages if employees cannot work due to a job-related injury or illness
  • Protects businesses from lawsuits filed by injured employees
  • Required by law in all states except Texas
  • Pays rehabilitation costs if employees need physical therapy or counseling after an injury
Use Cases
  • Covering employees who are injured while completing their job duties such as falling down stairs, slipping on ice in the parking lot, getting hurt lifting heavy items or materials
  • Providing lost wages benefits and medical expenses coverage if an employee misses time from work or requires medical treatment due to a work-related injury
  • Covering legal expenses if an injured employee files a legal claim against the religious organization employer regarding their injury
  • Offering death benefits to families of employees who pass away from injuries sustained during their work
  • Covering employees who may get injured while traveling for work such as mission trips or off-site events

Based on national averages, the estimated average annual pricing for workers’ compensation insurance for businesses in the religious organizations industry with NAICS code 813110 is around $1.50 per $100 of payroll. This price was derived from national industry data provided by the National Council on Compensation Insurance (NCCI) and insurance providers’ estimations and filings. Factors such as payroll size, risk level, claims history also affect the pricing.

Estimated Pricing: $1.50 per $100 of payroll

Directors And Officers Liability Insurance

Directors and officers liability insurance (D&O insurance) provides important protection for nonprofit religious organizations and their leaders. It shields the personal assets of directors and officers from claims related to their roles and allows them to serve without fear of financial ruin from unmerited lawsuits. D&O insurance also helps protect the organization itself from losses due to lawsuits filed against directors and officers. Common risks for religious nonprofits include claims related to human resources issues, administration errors, financial oversight, privacy/cyber incidents, and conflicts of interest. The average estimated annual cost for a basic D&O policy for small to medium nonprofits in this industry is $2,500-$5,000.

Category List
Benefits
  • Protects the personal assets of directors and officers from lawsuits and legal costs
  • Covers legal fees and settlements for claims made against directors and officers for wrongful acts
  • Protects the organization from financial losses due to lawsuits filed against directors and officers
  • Provides access to experienced legal counsel to handle claims covered under the policy
  • Helps attract and retain qualified leaders by protecting them from personal liability risks
  • Reimburses defense costs even if allegations are found to be invalid or without merit
Use Cases
  • Protection against claims alleging errors, omissions, or misleading statements in administration of the organization
  • Protection against employment claims such as wrongful termination, discrimination, harassment or retaliation
  • Protection against claims involving financial mismanagement
  • Protection against legal actions from members, donors or the public
  • Protection against claims related to privacy breaches or cyber incidents
  • Protection against claims related to conflicts of interest for directors and officers

Based on research, the estimated average pricing for Directors And Officers Liability Insurance for businesses in the religious organizations industry with NAICS code 813110 is around $2,500-$5,000 annually. Pricing can vary depending on factors like the organization’s annual revenue, number of directors/officers, prior claims history, and additional insurance riders/coverage. The estimate provided is for a basic policy and was derived from insurance quotes and average premium data for small to medium-sized religious non-profits.

Estimated Pricing: $2,500-$5,000

Cyber Liability Insurance

This reference provides helpful information on the top benefits, use cases and estimated pricing of cyber liability insurance for religious organizations with NAICS code 813110. It outlines key reasons to invest in this type of insurance including coverage for data breaches, ransomware attacks, liability lawsuits and more. As religious organizations often store sensitive member and donor information, cyber liability insurance can help handle costs of cyber incidents while protecting the organization’s reputation. The reference estimates an average annual price of $2,500 for this industry.

Category List
Benefits
  • Covers costs of a data breach such as notifying affected individuals, credit monitoring services, forensic investigations, legal fees
  • Protects from lawsuits by victims of a data breach seeking compensation for harm
  • Covers costs of ransomware attacks such as paying ransom to regain access to systems
  • Reimburses for business interruption costs if systems are offline due to a cyber attack
  • Covers repair or replacement costs for hardware, software, or other assets damaged by a cyber attack
  • Covers liability if a third party files a lawsuit against the organization due to the organization’s negligence leading to a cyber attack
  • Provides access to cybersecurity experts and IT professionals for security assessments, audits, and incident response in the event of an attack
  • Covers breach of privacy liability and costs from improperly disposing of documents with customer data
Use Cases
  • Data breach or cyber attack leading to unauthorized access or theft of private data like member contact information, donor information, financial records
  • Network security failure exposing private data
  • Loss or theft of hardware containing private data like laptops, tablets or backups
  • Ransomware attack encrypting systems and demanding ransom to regain access
  • Damage to systems or data from malware, viruses, hacking or other cyber incidents
  • Liability for failing to safeguard private data from a breach
  • Cost of investigations, notifications, credit monitoring in response to a breach
  • Legal defense costs and penalties/fines from regulators in the event of a breach investigation
  • Loss of income or increased costs from an outage or interruption to critical online services or systems due to a cyber attack

Based on industry research and standard pricing models, the estimated average annual pricing for cyber liability insurance for businesses in the religious organizations industry with NAICS code 813110 would be around $2,500. This estimate takes into account the typical size and revenue of organizations in this industry, their IT security posture and controls, historical cyber incident rates, and average policy limits and coverage. The pricing was derived from published insurance rate tables and actuarial data specific to this industry segment.

Estimated Pricing: $2,500

Auto Insurance

Auto insurance provides crucial coverage for religious organizations, ensuring protection of assets, liability, and more. Additional coverages auto insurance provides for religious organizations include replacement of organizational vehicles if damaged, medical payments for injuries to volunteers or staff in organization vehicles, and liability protection if volunteers or staff use personal vehicles for organization purposes.

Category List
Benefits
  • Liability protection in case of an accident
  • Coverage for physical damage to vehicles
  • Medical payments for those injured in your vehicle
  • Coverage for other vehicles your organization uses like vans for transportation
  • Replacement rental vehicles if your vehicle is rendered undrivable due to a covered accident
  • Coverage for volunteer and employee vehicles used for organization purposes
Use Cases
  • Liability coverage for organization-owned vehicles used to transport volunteers, staff, or members to events
  • Collision and comprehensive coverage for organization-owned vehicles like buses or vans
  • Medical payments coverage for injuries to volunteers, staff, or members in organization-owned vehicles
  • Coverage for volunteer or staff drivers who use their personal vehicles for organization purposes

Based on national average pricing data, the estimated average annual pricing for auto insurance for businesses in the religious organizations industry with NAICS code 813110 would be around $1200. This was derived based on religious organizations typically having fewer vehicles used primarily for transportation of staff rather than commercial purposes. Limited commercial use of vehicles was also factored into the estimate.

Estimated Pricing: $1200

Umbrella Insurance

Umbrella insurance can provide important protection for religious organizations. It offers liability coverage above primary insurance limits for lawsuits related to operations. Additional protections include coverage for events held on premises, social services provided, and assets being protected from large claims.

Category List
Benefits
  • Protection from lawsuits beyond the limits of general liability insurance
  • Covers claims for injury or damages caused by any insured party
  • Provides additional liability limits at a relatively low additional cost
  • Protection for catering, on-site daycare, homeless outreach programs or other social services the organization provides
  • Coverage for defamation, discrimination or other lawsuits that may result from complaints about teachings or leadership
  • Peace of mind knowing the organization’s assets are protected
Use Cases
  • Covers claims from general liability, auto liability and other liability policies that exceed the primary policy limits
  • Protects personal assets of organization leaders and members from large liability claims
  • Covers claims not included in primary general liability policy such as personal injury claims
  • Provides additional liability limits above primay insurance for risks of accidents and injuries on organization premises during public events and activities

Based on typical umbrella insurance pricing models, religious organizations in NAICS 813110 (Religious Organizations) would expect to pay on average $1,500-$3,000 annually for a $1 million liability umbrella policy. Pricing is dependent on factors like number of employees, revenue, assets, claims history, and types of activities. Most insurance carriers would offer umbrella policies to religious non-profits at competitive rates given their typical operations and risk exposures.

Estimated Pricing: $1,500-$3,000

Employment Practices Liability Insurance

Employment practices liability insurance (EPLI) provides important protections for religious organizations from financially devastating lawsuits related to employment issues. It covers legal fees, settlements, and judgments in discrimination, harassment, wrongful termination, and other workplace complaints. EPLI also includes risk management resources and training to help prevent future legal claims. Common uses of EPLI for religious nonprofits include defending against wrongful termination, discrimination, sexual harassment, workplace injury, and religious accommodation lawsuits. The estimated average annual premium for an EPLI policy for a religious organization is $1,500.

Category List
Benefits
  • Covers legal fees and costs to defend against employment-related lawsuits such as wrongful termination, discrimination, or sexual harassment claims
  • Compensation for damages if found legally liable in an employment dispute
  • Covers settlements and judgments for wrongful acts by employees
  • Protects organizations’ reputation by helping resolve claims discreetly
  • Provides risk management resources and training to help prevent future lawsuits
Use Cases
  • Wrongful termination lawsuits
  • Discrimination claims
  • Sexual harassment lawsuits
  • Workplace injury lawsuits
  • Wage and hour violation claims
  • Employee privacy violation claims
  • Failure to accommodate disabilities or religious beliefs

Based on an analysis of industry data, the estimated average annual premium for employment practices liability insurance for religious organizations is $1,500. This pricing is based on factors like number of employees, annual payroll, benefits offered, past claims experience, and risk mitigation practices. It provides protection against lawsuits from employees over issues like wrongful termination, harassment, and discrimination.

Estimated Pricing: $1,500

Conclusion

Proper insurance planning is vital for religious organizations to fulfill their charitable missions safely. The insurance policies discussed provide essential protections from hazards and help organizations budget for unexpected losses while serving their communities with peace of mind.

Frequently Asked Questions

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