Discover why church cutbacks related to COVID-19 may result in partial insurance premium returns.

Read about reductions in church operations that may lower insurance liability premiums.

In many ways COVID-19 has collectively rendered 2020 as the lost year. Nobody has escaped some element of personal tragedy, economic loss, or disruptive lifestyle adjustments, due to COVID-19. Churches are no exception. Heightened operational challenges have exposed vulnerabilities that affect churches of all sizes. If your church has or is considering cutbacks in operations, it may receive a partial return on its liability insurance premium.

For ease of discussion, I will highlight three operational areas in which churches may have or are considering cutbacks, as a result of concerns related to COVID-19. I encourage individual churches to contact Richey-Barrett Insurance to discuss their specific situation with respect to these activities, as well as any other insurance questions your church may have.

Church Daycare and/or Pre-school:  If your church operates either one, it is a separately rated line-item on your church insurance policy. Discontinuing this activity, even temporarily, may result in a partial premium return under the General Liability section of your policy. Safety should always be a key priority involving any activity. That said, Ohio Gov. Mike DeWine recently signed Ohio House Bill 606, which provides state-law immunity from civil lawsuits for injury, death, or loss related to the transmission or contraction of COVID-19. The law will cover individuals, businesses, schools, churches, non-profits, and governmental entities, excepting anyone or any entity acting recklessly, or exhibiting intentional misconduct, or willful or wanton misconduct. When enacted, H.B. 606 will be retroactive to March 9, 2020, and will expire September 30, 2021. While H.B. 606 is designed to provide expansive protection from tort liability, there is potential that a unique case with unique circumstances could pierce the shield from civil liability.

Van/Vehicle Transportation:  Does your church use a van/vehicle to transport elderly to and from worship? Does your church transport youth and/or adult participants to and from church camp or church retreats? Regardless of the protections afforded through H.B. 606 mentioned above, your church or your riders may still deem riding in close quarters too risky due to COVID-19. If your church cuts back or completely discontinues use of a church van/vehicle, its auto liability premium may be discounted or partially returned. Any decision to cancel the church’s auto liability policy, even temporarily, should be carefully considered for two main reasons. #1 The church would need to ensure that no one has access to the van/vehicle as of the effective date of cancellation. #2 In order to comply with Ohio law, the van/vehicle registration would need to be cancelled.

Staff Layoffs:  Generally speaking, churches are not immune to financial hardship. COVID-19 has added an additional burden of reduced donations and in-person participation. When revenues do not keep pace with expenses, staff layoffs may be necessary. Notify Richey-Barrett Insurance promptly of any staff layoffs. If your church insurance policy includes Employment Practices Liability, a reduction in staff may result in a small premium return under this section of the policy.

Richey-Barrett Insurance is your Trusted Choice Independent Insurance Agent for church insurance in and around northern Ohio. We are familiar with exposures unique to churches, and we represent quality insurance companies that provide quality church insurance.