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Church Business Interruption Insurance May Cover Lost Income

This week we have been discussing business interruption insurance, and whether or not your church or place of worship would benefit from holding such a policy. Although congregations and parishioners don’t often like to think of the business side of things, there is a financial aspect to most organized churches. Even non-profits and charities need money to function and operate. If your religious building is damaged in severe weather or rendered unable to operate after vandalism or fire, you may be left without the income you need to continue your services and survive.

Let’s take a closer look at some common forms of church income that may be lost when your building is damaged. Here are some types of income that could be covered by business interruption insurance:

  • Donations and offerings. One of the largest sources of income for many religious centers is donations and offerings from the congregation during services. If services are halted, these donations stop.
  • Rental income. Many churches make significant amounts of money from renting out their chapel and other buildings for events like weddings.
  • Tuition. Many churches run programs like preschools and youth classes that involve entry fees or tuition. When these programs stop, so do the funds.
  • Fees for services. Church fees are also lost when your religious buildings close.
  • Special events. Special events, such as annual fundraisers, are also impossible.

Knowing how to insure your church is an important step in protecting it. To learn more about church insurance or business interruption insurance, contact our Texas church attorneys today: 888-614-7730.

Join The Conversation
Scott Soulman 09/12/2017 06:45 PM
How do you determine business income & extra expense limit of insurance for a church with donations and offerings income?
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