The local Baptist Association had a pretty good setup. The central office allowed them to handle the business meetings of their local churches. It also gave them space to help host meetings to support their churches in many ways.
They also own a campground about 90 minutes away. That space is used year round by a lot by their member churches. It is a wonderful spot for camps, youth events, retreats, and weekend gatherings.
During the most recent board meeting, they were contemplating their financials. It was started because of their insurance policy renewal. As they read through the key highlights from the insurance company, a few questions came up. What insurance coverage kicks in if someone gets hurt while using their property? Did the campground need additional coverage for all of their events? And why were they listed under one of the local churches instead of their own name since they are a separate nonprofit organization?
They realized they needed to learn more about how church insurance policies work since the property is owned by the association rather than an individual church.
Commercial Property Coverage Is a Must
When an association owns buildings or land, it needs to have a proper commercial property insurance policy. This kind of property policy covers damage from things like hail, fire, theft, or storms. It also protects the stuff inside the buildings, like furniture, computers, or equipment. Otherwise known as personal property.
The office building in town needed its own property protection separate from the campground. Each location had different risks, and both were important to protect from property damage. When the board began digging into the details, they saw right away that they couldn’t just rely on a member church’s property policy to cover the association’s property since the church didn't truly own it..
Liability Protection for Association Owned Spaces
Liability insurance is just as important as property coverage. Maybe even more so. A general liability policy helps if someone slips, falls, or gets hurt while on your property. It also protects the association from legal claims if someone claims they were injured or if something gets damaged.
For the association, the campground was a big concern. Lots of people used the space throughout the year. They realized that even though they weren’t there every day, they could still be held responsible for liability claims if something went wrong during an event.
What they didn't realize was that they also needed Directors & Officers Insurance coverage. The Board was making big decisions and everyone might not agree with them. This type of liability insurance would protect them to make decisions to the best of their ability without fear of repercussions. Having adequate liability coverage gave them peace of mind.
Shared Use Requires Special Attention
The campground is a great resource for churches and the association run camps are incredible moments in the lives of the children and youth that attend them. But what about the other events that member churches run during the year that the association isn't in control of directly?
Letting different church groups use the campground brings extra risk. What if someone falls off a bunk bed? What if a fire gets started during a cookout? The what if questions were taking on a different weight when thinking the legal costs of defense for something they had no control over.
That’s why the association started asking every group to carry their own event insurance. This kind of short-term coverage is a separate policy that can protect both the group using the property and the association that owns it as long as they are listed as an additional named insured. That way, if something does go wrong, the association’s main policy doesn’t take the hit and there is financial protection for the association.
Make Sure the Association Is the Named Insured
Speaking of being a named additional insured, one big mistake that associations make is not having their name listed on the policy. If a member church is carrying the policy instead of the association, and a common claim happens, things can get messy fast. Insurance providers may delay or even deny payments for the claim. It may seem trivial now, but it can make a big difference later for legal costs and medical bills.
Why a Church Insurance Specialist Matters
The association board had assumed they had done everything right. But once they sat down with a church insurance specialist, they learned there were several small things they had missed that put their member churches and themselves at risk. Those details matter when it comes time to file a claim.
A true insurance professional who specializes in churches understands how associations operate. They know that camps and office buildings don’t always work the same as local churches. That experience helps build better policies that actually work when they’re needed most.
Protect What Matters with True Texas Church Insurance
Insurance For Texans works with churches and church associations all across Texas. Through the True Texas Church Insurance program, we help protect buildings, people, and ministry work with the right kind of coverage. It is about asking you questions so that we can understand the type of church insurance coverages that you need, so that we can pair you with the best insurance carriers for the job.
The association and its board got the answers they needed. And they got coverage that fits how they really use their property.
Click the button below to talk with a church insurance specialist who can help your association protect what matters most.