Protecting Your Church's Insurability

We wanted to share this simple warning with you - that your church may very well be uninsurable

The insurability of an organization is a delicate matter. At some point, many organizations experience a lack of interest by agents and insurance companies to pursue a business relationship with them. This is mainly due to claims that have been made by the organization.

Things happen that are out of your control, but there are number of things you can do so when those freak occurrences do happen, the relationship between the insured and insurance company is strong.

Here are a few things you can do TODAY to start making sure your church is insurable.

Set an appropriate deductible for the size of your ministry

For example, if your total budget is $10 million for the year, then a $500 deductible is a bit too low. Just like in your personal budget, you should have an emergency fund to cover small claims. Gather your leadership team and discuss the actual dollar amount that you would turn in a claim for. To be clear, with a $2500 deductible, a claim would not be submitted for a loss which totaled less than $5,000.

Pay your premiums on time

This one goes without saying, but deserves extra emphasis because Insurance companies note every time you pay late and will adjust their attitude towards your policy accordingly.
Organize and inventory your property. In the event you do need to make a claim, the process will be much smoother if you have already accounted for all property. For help with this, take a look at a previous blog post on conducting an organizational property audit. We also included a handy checklist to make this even easier.

Communicate with your agent

A good agent will carry a great deal of influence over the underwriter/insuring company and can represent your interests. Conversely, the agent may also recommend that the policy be dropped, if a ministry fails to adhere to the principles of good insurability.

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