From colonial-era meeting houses to the South's many brick churches, the U.S. has nearly 380,000 places of worship. Yet what gives older churches their charm can also expose religious organizations to unique risks, from bursting pipes to injuries caused by aging or damaged infrastructure. Alongside the other risks inherent in pastoral counseling, fundraising, child care, and transport, liability insurance for religious institutions is as essential as ever.

So why are religious organizations encountering more hurdles when it comes to their insurance coverage? Scott Haan, Philadelphia Insurance Companies' (PHLY's) Vice President of Marketing and a longtime veteran of religious institution insurance, chalks it up to a few factors. "In my 38 years, I've never seen such a disruption in the church marketplace," said Haan. "It's primarily due to losses, underpricing, and just poor underwriting.

"Recently, Haan and PHLY Product Manager of Underwriting for Human Services, Michael Nester, sat down with PHLY Regional Sales Manager for Marketing, Kalie Lindmark, to explore challenges and opportunities in the religious organization insurance market. "We're seeing more change than ever," noted Lindmark.

Religious Liability Insurance: Harder to Find at a Critical Moment

Surging claims, rising construction costs, and poor performance from historically strong church insurance markets have caused churches to lose long-held insurance policies. In some cases, entire denominations have struggled to find affordable coverage. PHLY has positioned itself as a key resource for agents seeking reliable alternatives when insurance challenges are particularly severe.In recent years, Haan has observed double-digit rate increases and deductible changes from $1,000 and $5,000 to $10,000 and $25,000. Many churches are frustrated with their current insurance carriers and actively seeking better coverage options.

New Growth Opportunities in Religious Institution Insurance

Faith-Based Schools: An Underexplored Market

Religious organizations often operate faith-based schools, which face their own unique risks. Haan notes that many of these schools are experiencing 20% or more rate increases, poor service, and challenging claims management. PHLY recently partnered with the Association of Christian Schools International (ACSI), which includes 2,220 member schools, creating new opportunities for insurance agents to expand their offerings in this sector.

Liability-Only and E&S Market Growth

Nester noted that liability-only coverage has become an emerging market segment. PHLY policyholders also benefit from MinistrySafe, a system devoted to reducing the risks of sexual abuse within religious organizations.

Aging Churches Can Mean New Coverage Opportunities

The average church in the United States is 92 years old, according to Church Answers - which also found that churches on a tight budget might defer pricey maintenance such as replacing roofs and pipes, leaving them exposed to potentially disastrous damages.PHLY offers innovative risk management solutions, including PHLYSENSE, which helps policyholders monitor and alert officials of potential damage before it occurs."Our risk management team conducts physical inspections that proactively identify issues. PHLY's broad Ultimate Coverage for property includes up to $50,000 in water damage coverage, including sewer drains and backups, which many competitors do not offer," said Nester.

Religious Organizations and The PHLY Difference

More than ever, religious organizations can benefit from an insurance agency who knows the unique risks they face and has a depth of knowledge around managing claims. PHLY's suite of products for religious organizations offers agents a spectrum of choices when targeting everything from small churches to larger religious institutions. "I think there are areas to capitalize on liability-only because of how the marketplace is shaping up" said Nester, who recommends that agents focus on PHLY's stability, financial grading, and risk management services.Haan urges agents to not overlook products such as PHLY's stand-alone Flexi Plus Five coverage, which includes Directors & Officers Liability. "We really stand out on the management professional lines," said Haan.To find out more about PHLY's religious organization insurance products, contact Micheal Nester at 800-873-4552 or Michael.Nester@phly.com.