Texas Baptists Launch Insurance Program for Church Property and Liability Coverage
The Baptist General Convention of Texas (BGCT) is advancing a program to provide affordable property and liability insurance coverage specifically for Texas Baptist churches. This initiative, known as the Texas Baptists Indemnity Program, aims to launch by late summer, pending approval of a certificate of authority from the Texas Department of Insurance, expected within 30 days. The insurance program is facilitated through Texas Baptists Risk Management, a nonprofit corporation separate from BGCT to protect the convention legally and operationally.
This move comes after major insurance carriers exited the Texas market, causing many churches to face difficulties in renewing policies and encountering substantial premium increases. The BGCT conducted a feasibility study which led to the decision to form a captive insurance pool, similar to models used by some school districts and nonprofits. The BGCT has allocated up to $12 million from its investment fund to support the insurance reserve necessary for this program.
Initially, 241 churches that participated in the feasibility study will be eligible to apply for coverage quotes. The program plans to expand eligibility to any church contributing at least 1% of its undesignated receipts to the BGCT Cooperative Program. Coverage options include property for facilities, auto insurance, workers’ compensation, general liability, professional liability insurance for ministers, directors and officers liability, sexual abuse coverage, and cyber liability protection.
At its recent meeting, the BGCT Executive Board authorized securing a letter of credit to meet capitalization requirements, equating to a minimum of 25% of first-year premiums. The board also appointed leadership positions for the risk management nonprofit, ensuring experienced oversight with certified risk managers and licensed insurance agents involved in the program’s administration.
The BGCT continues to strengthen its institutional relationships; notably, it approved a pending agreement to adjust the governance relationship with Dallas Baptist University. This agreement reduces BGCT-elected trustees but ensures 51% remain affiliated with BGCT churches and retains full Baptist membership of trustees. This change aims to enhance DBU’s operational flexibility while maintaining its Baptist mission and affiliation.
Overall, the BGCT’s steps to establish a tailored insurance solution address a critical market gap for faith-based organizations in Texas, offering comprehensive and specialized coverage amid growing challenges from departing commercial insurers. The program’s nonprofit structure, backed by significant reserves and regulatory compliance, positions it as a strategic alternative to traditional insurance providers.