Why would a church buy a Workers Compensation (WC) policy?
A church would purchase workers compensation to protect itself and its employees in case of work related injury to those employees. This is made necessary since injury to employees is excluded under the Commercial General Liability (CGL) policy and because most states require employers to be responsible for the payment of certain benefits following an employee injury.
Some quick facts:
- Payments for injuries are prescribed by state statute.
- In Florida, a church with four or more employees (full or part time) is required to purchase WC insurance.
- Pastors, by the definition of “employee” in the state statute, are almost always considered an employee, not independent contractors.
- The fact that a church is not required to purchase workers compensation insurance does not relieve it of its duty to pay for employee injuries as prescribed by state statute.