Why Does a Church Need Workers Compensation?

Often asked is, “Why do churches need a WORK COMP policy?”. 

Many churches have the mistaken impression that their CHURCH INSURANCE POLICY will cover injuries to their paid workers.  THIS IS NOT TRUE!       

You need to know that all church insurance policies (with every company) EXCLUDE coverage for injuries to hired or paid workers for on-the-job injuries and accidents. 

Volunteer workers are covered by most CHURCH policies, including yours.  But, a compensated/paid worker will always be denied coverage by the CHURCH policy for their injuries.  A state law, the Louisiana Workers Compensation Act, requires employers to provide mandated Work Comp benefits for their paid workers injured on the job.  A CHURCH policy can’t and won’t duplicate this mandated coverage. 

Work comp is not an expensive policy for the average church – with premiums around $500 a year for a church with annual payroll of $100,000.  This policy trades a minimal cost for a major benefit and much needed protection for the church and their paid workers.  I insure over 1000 Louisiana churches and more than 90% carry workers comp.  Those who don’t have never had a claim to an injured PAID worker to learn this the hard way, or they just can’t afford the small premium.

If your pastor is injured visiting a church member, or working in the church office or around the church building, and gets injured;  how will the church afford to compensate him and hire an interim pastor during his absence recovering from the injury – what if a long term recovery?  What about hospital bills and major surgery bills that pastor’s private health insurance (if he has any) might not cover – can your church afford to pay a $25,000 or $50,000 medical bill on behalf of the injured pastor. 

A recent claim we experienced in the agency involved a pastor who incurred a serious automobile accident on his way to the hospital to visit a church member and pray with the family before surgery.   As a result of the accident, the pastor broke several vertebrae in his neck and had to be placed in a neck halo for 9 months minimum.  He was confined to the parsonage while his neck healed, with instructions to do nothing but sit or lay around – he was not allowed to preach!  Due to the pastor’s absence, the church had to hire an interim pastor while also paying their injured minister during his healing process. 

1. What if the injured person never recovered, the church would have to kick him out of the parsonage to move in the replacement pastor. 
2. How would the injured pastor afford housing being out of work?How do they continue to pay their injured pastor and pay his replacement? 
3. How do they find the money to help pay the injured pastor’s ongoing medical bills that are out of pocket? 

This church’s WORK COMP POLICY solved their needs.  Work Comp coverage provides three benefits when an on-the job injury occurs:

1. Pays all medical bills (no maximum limit) for treatment of the injury.
2. Pays the injured worker 2/3rds of their normal wages (subject to state imposed minimum and maximum weekly amounts) during any period of disability or recovery.
3. Provides Employers Liability (lawsuit coverage) for the church if sued over an on-the job injury.

Please call our office at 1-800-256-0700 to get a free no-obligation work comp quote for your church.  We will need your annual payroll for each paid position in the church to calculate the premium.  We do not need worker names, social security numbers, or any personal data as we don’t track that – only payroll amounts and type of job/duties performed.  Contact me if questions.