When to Update Your Church’s Insurance Policy — And Why It Matters

I once sat in a church finance meeting where someone said, “We updated our insurance a few years ago — so we’re good.”
Everyone nodded, someone passed the donuts, and we moved on to the next agenda item.

But here’s the problem: in church life, “a few years ago” might as well be a lifetime ago.

Your insurance policy isn’t a static thing you set once and forget. It’s more like your church directory — it only works if it reflects what’s true right now.

And in my experience, the churches that fail to update their coverage aren’t lazy… they’re just busy. They don’t realize that every time something changes in their ministry, their policy should probably change too.

Why Your Policy Needs Regular Updates

Think of your insurance policy as a mirror. It’s supposed to reflect the real picture of your church — your people, your property, your ministries, your risks.

The trouble is, churches change all the time:

• You start new ministries.
• You add buildings or remodel old ones.
• You host bigger events.
• You buy new tech or vehicles.
• Your congregation size grows (or sometimes shrinks).

If your insurance doesn’t keep up with those changes, you might be covered for the church you used to be, not the church you are now. And when a claim comes in, that gap can cost you — big.

What Can Happen if You Don’t Update Your Policy

Here’s one that still makes my stomach turn.

A church spent months renovating their sanctuary — new sound system, fancy lighting, beautiful woodwork. It was stunning. They proudly posted photos online.

Then, a year later, a pipe burst in the ceiling over the platform. Water poured over thousands of dollars of new equipment.

The insurer agreed to pay — but only based on the old insured value of the building, because the upgrades had never been reported. The payout didn’t even come close to covering the loss.

The rest came straight out of the church’s budget. That year’s outreach projects? Delayed indefinitely.

When to Update Your Church’s Insurance Policy

You don’t need to call your agent every time you buy a box of pens. But there are moments when an update is non-negotiable. And each of these moments has a real-world “you’ll regret it if you don’t” story attached.

1. After Any Major Building Project

Why: Renovations, expansions, or significant repairs increase the value of your property. If your coverage still reflects the old value, you’re underinsured.

Example: A church added a new fellowship hall for community events. Six months later, a fire broke out in the kitchen. The damage estimate was $400,000 — but their policy only covered the original square footage. They received half of what they needed.

Tip: As soon as the construction dust settles, call your insurer. Even better — call them before the project starts so coverage is in place during construction.

2. When You Add or Change Ministries

Why: Every ministry activity carries its own risks. If they’re not listed in your policy, a related claim could be denied.

Example: A church started a weekday daycare as an outreach. A child got injured on the playground. The insurer denied the claim because the daycare wasn’t in the policy. The church paid medical costs themselves — and the daycare shut down.

Tip: New ministry = new risk. Whether it’s a food pantry, youth sports league, or counseling program, make sure it’s listed.

3. When You Purchase New Equipment or Vehicles

Why: Expensive items need coverage. If they’re not scheduled in your policy, they may be uninsured.

Example: A church bought two vans for their youth ministry. One was totaled in an accident, but the insurer only paid for the old van still on file. The “new” van technically didn’t exist in their coverage.

Tip: Keep a running list of valuable equipment — musical instruments, tech, vehicles — and check it against your policy annually.

4. After Staff Changes

Why: Leadership changes can affect coverage needs, especially for workers’ comp, employment practices liability, and directors and officers (D&O) insurance.

Example: A church hired a new executive pastor but didn’t add them to the D&O policy. When a decision they made led to a lawsuit, the church discovered they weren’t covered.

Tip: Any time you add, remove, or change the role of a key leader, review your coverage.

5. If Your Membership Size Changes Significantly

Why: Some policies base certain coverage — especially liability limits — on congregation size. Growth (or decline) can mean you’re misaligned.

Example: A church doubled in size over three years but never adjusted its policy. An incident at a packed event triggered a claim that exceeded their liability limit.

Tip: If your average attendance changes by more than 25%, check with your insurer.

6. Before Hosting Large or Special Events

Why: Concerts, conferences, or festivals may require special event coverage.

Example: A church hosted a Christmas market on their property. A vendor’s tent collapsed in high wind, injuring a visitor. The insurer said the event wasn’t covered because it was outside normal activities.

Tip: Don’t assume. Call your insurer before the event and ask if it’s covered.

7. When Laws or Local Regulations Change

Why: State and local laws can change insurance requirements without much notice.

Example: A state updated its workers’ comp laws to include volunteers. A church’s coverage didn’t reflect the change — until a volunteer injury led to a denied claim.

Tip: Build an annual policy review into your calendar, even if you think nothing’s changed.

The Power of Annual Reviews

Even if you haven’t had any “big” changes, an annual review is still worth it. Here’s why:

• Insurers sometimes tweak policy terms without highlighting the changes.
• Replacement costs for buildings and equipment go up with inflation.
• Risks evolve — from cybersecurity threats to new ministry trends.

Think of it like a yearly check-up at the doctor. You may feel fine, but catching a problem early is always better than treating a crisis later.

Why CLS Makes This Easier

At Church Law & Strategy, we go beyond the quick “yep, you’re covered” answer. We read every line, ask the awkward “what if” questions, and flag the hidden risks.

In The Pastor Support Plan and The Executive Plan, this review is part of the package. Smaller churches can access it as a standalone service. Either way, you end up with a policy that matches your actual ministry — not the ministry you had five years ago.

Bottom Line

Your ministry changes. Your insurance should change with it.
The worst time to find out you’re underinsured is when you’re holding a claim denial letter in one hand and a repair bill in the other.

A quick review now can save you from a financial disaster later — and give you the peace of mind to focus on what matters most: your people and your mission.

Our Links

• Church Legal Audit and Recommended Action Report
• Comprehensive Church Insurance Review and Report
• Child Safety Certification Program

Other Resources to Check Out!

• Brotherhood Mutual – Church Property and Liability Coverage
• GuideOne – Church Insurance Review Tips
• Insurance Information Institute – Policy Update Basics

Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. Reading this content does not create an attorney-client relationship between you and Church Law and Strategy or its representatives. For specific legal advice tailored to your church or organization, please consult a licensed attorney.