Church insurance premiums have climbed sharply over the past five years, and some congregations are struggling to pay. Andre Krutainis, vice president of specialty portfolios at GuideOne Insurance, said small churches face tough choices. Among Southern Baptists, GuideStone Financial Resources has launched a new model that it says could help churches cut costs. The agency says the market may now be starting to ease.

What happened

Krutainis said one pastor cried during a meeting with him. The pastor told him he had to choose between paying for insurance and paying his own salary. Krutainis said such decisions are a reality for smaller churches.

GuideStone has changed how it helps churches buy coverage. Its insurance division used to work mainly through one carrier, Brotherhood Mutual. Starting this year, it acts more like an insurance broker. It connects churches with dozens of carriers. The division now serves churches in 13 southeastern states. GuideStone plans to expand to as many as 48 states, but not New York or Hawaii, because of their insurance laws.

Matt Cardwell, who leads GuideStone's property and casualty insurance team, said he is excited about the change. He said it should save churches money.

Context

Several factors pushed premiums up. Krutainis cited severe weather, sexual abuse cases, changing state laws and rising jury awards in lawsuits. He said the top three church insurers, GuideOne, Church Mutual and Brotherhood Mutual, all faced financial strain. Those insurers then limited coverage and raised prices. Some other companies stopped covering religious groups altogether.

A Massachusetts insurance agency has described a "church insurance market crisis" in 2026. An industry journal reported church rate increases of 12 to 30 percent this year. One church in Monticello, Mississippi, Bethel Baptist, says its premiums rose 119 percent in three years. Its pastor, Adam Wyatt, said on Facebook that insurance is hurting church budgets.

What to watch

Cardwell says many churches are beginning to see lower premiums. He said the market has softened somewhat over the past 12 to 18 months. Whether that trend holds, and whether GuideStone's expansion lowers costs for churches in new states, remains to be seen.