Community centers provide a wealth of services for the local community, from vocational classes to athletic facilities to youth activities. With a wide range of operations and facilities, it’s important for community centers to be properly protected from a variety of liabilities and risks. The right set of business insurance policies can help to ensure your community center is appropriately covered from any accident or lawsuit.
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What insurance do I need for my community center?
Commercial Property Insurance
Community centers operate from leased or owned spaces, and as such, need some form of protection from hazards or disasters that could damage property. With commercial property insurance, your community center can protect the value of your buildings and the contents of those buildings, whether it is athletic equipment or computers.
Commercial property insurance will cover the cost of replacing or repairing property that is damaged by a covered peril, including fire, storm, theft, vandalism, and more. For leased spaces, you’ll likely be required by your landlord to carry property insurance.
Example:
- A fire breaks out in the kitchen of your community center, causing damage to large portions of your building and destroying expensive kitchen appliances. Your commercial property policy will cover the costs of repairing your building and replacing damaged equipment.
Commercial Crime Insurance
Community centers may be at risk for theft, burglary, robbery, or employee dishonesty, as oftentimes cash is accepted as payment for various classes and events. In order to protect against potential crime, it’s important to not only implement safety procedures but also secure crime coverage. Commercial crime insurance can provide protection against financial losses due to crimes, including employee theft.
Example:
- Your community center holds a concert, and during the event, someone breaks into your office and steals cash from the safe. Your commercial crime policy will cover the stolen cash.
Business Income Insurance
Community centers rely heavily on their physical spaces, without which they would likely be unable to operate. Business income insurance provides financial protection for your community center in the scenario that property damage from a storm, fire, or other covered peril, causes you to temporarily shut down your center. Business income insurance, or business interruption insurance, will provide coverage for loss of income and operating expenses due to these types of shutdowns.
Example:
- A severe windstorm causes a nearby oak tree to topple over, crashing onto the roof of your community center. The damage is extensive, and you are forced to shut down your center until repairs are made. Business income insurance will cover lost income during the shutdown.
General Liability Insurance
General liability insurance is a must-have coverage for community centers because of the high volume of visitors and the types of activities that take place. Risk for injury or property damage abounds, especially if your center has a swimming pool, gym, locker rooms, or event space.
General liability insurance protects your community center financially from third-party lawsuits claiming bodily injury or property damage on your premises. Even though you may practice extreme caution and implement comprehensive safety measures, accidents can and do still occur, and your business may be sued. General liability insurance can pay for legal fees, settlements, judgements, and even medical payments.
Example:
- A member of your community center slips on water near the swimming pool and falls and hits her head on the concrete floor. She must be rushed to the emergency room and requires substantial medical treatment. Your general liability policy will provide coverage for medical costs and any legal fees if the member decides to sue.
Commercial Auto Insurance
If your community center owns or leases vehicles, commercial auto insurance coverage is a critical coverage to secure. Commercial auto insurance provides protection for the value of your vehicles if they are damaged, in addition to providing liability coverage if you or an employee is at fault for causing a crash, causing bodily injury or damages to someone else’s vehicle or property.
Example:
- Your community center owns three vans that you use to transport members to and from various events. During a heavy storm, a tree falls in the parking lot and damages your vans. Your commercial auto policy will provide coverage for the damages.
Workers’ Compensation Insurance
Workers’ compensation insurance covers employees who suffer work-related illnesses or injuries during the course of their work. This coverage includes the employee’s medical expenses, rehabilitation, and a portion of lost wages. Workers’ compensation insurance is a required coverage in almost every state for businesses that have employees. Specific details (such as types of claims covered and the amount of compensation provided) vary from state to state.
Workers’ comp is an important coverage for community centers, as staff such as janitors, building or yard maintenance workers, repair personnel, drivers, and cooks are at higher risk of physical injuries. Even employees with desk jobs can be at risk for workplace injuries like carpal tunnel syndrome or back injuries.
Example:
- A member of your maintenance staff is replacing a light fixture when he slips and falls off a ladder, injuring his back. Due to his injury, he is unable to work for six weeks. Workers’ compensation insurance will cover his medical expenses and a portion of his lost wages until he is able to return to work.
Professional Liability Insurance
If your community center offers counseling or professional services, you may need to consider professional liability insurance, which protects individuals and companies from the costs of lawsuits and damages related to their professional advice and services. In the case that an individual sues your community center due to advice or counseling services received, professional liability insurance can step in to provide financial protection.
Example:
- Your community center provides youth counseling services to a teenager who has been having trouble in school. The teenager later ends up attempting suicide, and the parents sue your community center claiming negligence. Your professional liability policy will provide coverage for the lawsuit.
Additional Coverages
- Inland marine insurance financially protects products, equipment, and other forms of business property that are not tied to a fixed location and are not covered by commercial property insurance. More specifically, bailee’s customer coverage is important to consider if your community center offers lockers for members to temporarily stow their personal belongings. Your customers’ property is under your care, custody, or control, and you may be held liable if that property is damaged or lost.
- Employment practices liability insurance protects your business against lawsuits by employees who accuse your business of wrongful treatment, including discrimination, harassment, or other employment-related issues.
- Cyber liability insurance covers your business against liability and property losses caused by cyberattacks such as hacks, data breaches, denial of service attacks, and viruses. If your community center stores member data, including credit cards, contact information, or other personally identifiable information, cyber insurance may be an important coverage to consider.
Pricing and Quotes
Pricing for business insurance will vary based on the type of insurance coverage and the risk profile of your business. Insurers consider factors such as:
- Business size
- Industry
- Location
- Number of employees
- Claims history
Businesses with higher risks will have higher premiums than those deemed lower risk. For example, a community center with a history of frequent claims will face higher premiums. Premiums also rise as you increase the limits of insurance. Different insurance companies have different models for rating risks, so it is worth comparing pricing across different insurers.
In order to get an accurate estimate on pricing, it’s best to get a quote from a reputable insurance company. Below we’ve highlighted a few of our trusted partners who offer coverage for religious organizations:
| Provider | General Liability | Professional Liability | Business Owner's Policy |
|---|---|---|---|
| Embroker | ?? | ?? | ?? |
| CoverageSmith | ?? | ?? | ?? |
| CoverWallet | ?? | ?? | ?? |
| Hiscox | ?? | ?? | ?? |
| Thimble | ?? | ?? | ?? |
Final Word
Running a community center involves a myriad of potential risks and liabilities, from a member getting injured on your property to a fire damaging your building. In order to best protect yourself from these risks, consider investing in a comprehensive business insurance plan. From general liability coverage to commercial property insurance, the right set of policies can financially protect you and ensure lasting success for your center.